What are the material issues the company has identified?  

In its 2022 Sustainability Report Hyundai E&C identified a range of material issues, such as safety first and prevention of major accidents, securing customer satisfaction management through quality control, creating sustainable management performance, propelling ethical & compliance management and fair trade. Among these, creating economic value for its stakeholders stands out as a key material issue for Hyundai E&C.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai E&C engages with:

Stakeholder Group	Method of engagement
Government, Media and Association	·      Public Hearings ·      Press Release ·      Association Activities
Employee	·      Intranet, HDEC Newsletter, SNS, Blog ·      Next Leader Board, Discussion with CEO ·      Employee Engagement Survey, H·Dudrim ·      Sustainability Management Council
Customer	·      Call Centre, Customer Centre (web), SNS, Blog ·      Customer Satisfaction Survey ·      Hillstate Styler ·      H·Dudrim ·      Share ESG policies in the supply chain with domestic/overseas clients
Supplier	·      Meetings ·      Hi-partner System ·      Joint Cooperation Committee, Win-win Growth Support Centre ·      Supplier satisfaction survey ·      H·Dudrim
Society, NGOs and Social Groups	·      Local social contribution activities ·      Community meeting ·      External social contribution committee ·      Civil society and environmental groups ·      Global ESG initiatives
Shareholder and Investor	·      General shareholders’ meetings ·      Investment presentation ·      Public disclosure
Sustainability Experts, Academia and Research Institute	·      Sustainability Reports ·      Participation in surveys and external evaluations ·      Voluntary disclosure

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Hyundai E&C engaged with its stakeholders through an online and offline survey among a total of 2,896 employees and external stakeholders.

What actions were taken by Hyundai E&C to create economic value for its stakeholders?

In its 2022 Sustainability Report Hyundai E&C reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2021, Hyundai E&C paid KRW 6,097.5 million for employee compensations.

• Creating economic value for the government
• In 2021, Hyundai E&C paid KRW 2,997.2 million in tax.

• Creating economic value for suppliers
• In 2021, Hyundai E&C paid KRW 86,844.0 million in procurement and subcontracting expenses.

• Creating economic value for shareholders and investors
• In 2021, Hyundai E&C paid KRW 675.0 million in dividends.

• Creating economic value for local communities
• In 2021, Hyundai E&C spent KRW 135.8 million in donations.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.1, 8.2
• Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
• Targets: 9.1, 9.4, 9.5

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

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References:

This case study is based on published information by Hyundai E&C, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://en.hdec.kr/en/company/library_03.aspx?

Note to Hyundai E&C: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.