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HHI Group Sets Up ESG Committees at 9 Affiliates

Hyundai Heavy Industries (HHI) Group has laid the foundation to accelerate its efforts to integrate the environmental, social and corporate governance (ESG) agenda into the Group's business practices by establishing group-level governance of ESG issues and setting up ESG Committees at nine of its affiliates.

The Group recently announced that three of its listed subsidiaries - Hyundai Mipo Dockyard (HMD), Hyundai Construction Equipment (HCE), and Hyundai Electric - and two of its non-listed subsidiaries - Hyundai Heavy Industries (HHI) and Hyundai Samho Heavy Industries (HSHI) - respectively held their board meetings and set up ESG Committees.

Also, Korea Shipbuilding & Offshore Engineering (KSOE), the intermediate holding company for HHI Group's shipbuilding operations, and Hyundai Heavy Industries Holdings are scheduled to hold their board meetings on April 28 and 29, respectively, to resolve the establishment of ESG Committees. Hyundai Oilbank and Hyundai Energy Solutions (HES) are to follow suit in the first half of this year.

The ESG Committee formed or to be formed under the board of each of these affiliates consists of three to four outside directors and one inside director, responsible for deliberation on matters relating to design and implementation of the company-specific strategic directions and plans for ESG management as well as providing supports necessary for developing and internalizing ESG competencies in company-wide business activities.

The ESG Committee will be also charged with forming a "Group-wide ESG consultative body" to discuss the Group's key ESG policies, their implementation, and current issues and to support each affiliate's ESG management.

The Group will also operate an "ESG Advisory Group" consisting of external experts in different areas including environment, shared growth and compliance to ensure professional proficiency and objectivity in developing ESG-related policies.

By doing so, HHI Group plans to take the initiative in addressing environmental issues on land and at sea that the world is currently facing, while also committing itself to creating a better future with eco-friendly technologies.

"The Group will focus all its capabilities on the development of technologies across onshore and offshore areas for the future generations," said Ka Sam-hyun, HHI Group's Chief Sustainability Officer (CSO). "By strengthening ESG management, we will do our utmost to become a business that is respected not just by our shareholders, customers and investors but by all stakeholders in our industrial ecosystem."