INTRODUCTION SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX STEERING ON VALUES 2016 - 2017 Hyundai Engineering Sustainability Report INTRODUCTION 02 SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX ABOUT THIS REPORT 102-50, 102-51, 102-52, 102-53, 102-54, 102-56 This is Hyundai Engineering’s fifth sustainability report. Since the first publication of the report in 2010, the company has been sharing its performance in sustainable Interactive Guide management and activities with stakeholders. The 2016-2017 Sustainability Report consists of important issues, focusing on the company’s sustainable growth and social The 2016-2017 Hyundai Engineering responsibility. This report deals with business fields in which Hyundai Engineering (HEC) Sustainability Report was produced in has global competitiveness and delves into its industry-specific prospects. In particular, the Interactive PDF, guiding readers to a relevant page they wish to read. it sheds light on the company’s efforts to create a mutually beneficial environment with partner companies for shared growth as well as achievements in job creation and community invigoration. HOME A button that takes you to the cover page. Reporting Criteria PREVIOUS PAGE The report has been prepared based on the GRI (Global Reporting Initiative) Standards, A button that takes you to the preceding page the sustainable management guidelines, and reflects ISO 26000, the UNGC 10 Principles of the current page. and the UN SDGs. NEXT PAGE A button that takes you to the following page Reporting Scope and Period of the current page. The report covers activities in the Seoul Head Office and overseas and domestic workplaces, and separate footnotes offer explanation if the scope and boundary of the RE VIEW A button that takes you to the page just before. data of overseas subsidiaries and workplaces differ. It covers the activities and performance of Hyundai Engineering’s sustainable management from 1 January 2016 CONTENTS to 31 December 2017. Information associated with 2018 is also reported for some key A button that takes you to the table of contents. agenda or significant activities and performances. MOVE TO SPECIFIC PAGE Report Verification A button that takes you to a specific page Financial information in this report has been prepared through auditing by Samil PwC, in the contents. and non-financial information has been verified by Lloyd’s Register, an independent assurance agency. If you have any questions or suggestions, please contact us using the information below. Team: Strategy Execution Team, Business Strategy Office, Planning Group E-mail: [email protected] Tel: 02-2134-1835 Address: 75, Yulgok-ro, Jongno-gu, Seoul, Korea Website: www.hec.co.kr INTRODUCTION SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX CONTENTS INTRODUCTION 04 CEO Message 06 About Hyundai Engineering 08 A Leap for Hyundai Engineering 10 Hyundai Engineering Portfolios SUSTAINABILITY 22 Value Creation Process STRATEGY 24 Hyundai Engineering Vision 26 Sustainability Strategies 28 Sustainability Highlights SUSTAINABILITY 40 Building Competitiveness of a Global Corporation ISSUES 46 Keeping Workplaces Healthy and Safe 50 Going Hand in Hand with the Future Generation 56 Realizing the People-centered Value 62 Growing Together with Partners 68 Delivering Hope to Our Neighbors SUSTAINABILITY 74 Governance ENABLER 76 Ethics & Compliance Management 78 Risk Management 80 Stakeholder Engagement & Materiality Testing APPENDIX 86 Data Center 92 GRI Content Index 100 The 3rd Party Assurance Statement 102 UNGC Advanced Level & Membership in Associations INTRODUCTION 04 SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX CEO MESSAGE 102-14 “Hyundai Engineering commits to becoming a global and healthy corporation that fulfills its economic, environmental, and social responsibilities.” INTRODUCTION 05 SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX Dear stakeholders, I would like to extend my gratitude to you for your continued interest in and support for Hyundai Engineering. Hyundai Engineering continues to add prosperity and joy to people’s lives through its various businesses in not only Korea, but also many other countries around the world. Through value management, health & safety management, environmental management talent management, win-win management, sharing management, and ethics & compliance management, we strive to become a company that fulfills social responsibilities and grows together with all stakeholders. We share our efforts and performances in the achievement of economic, environmental, and social value through this 2016-2017 Sustainability Report. First, we achieve economic sustainability based on customer satisfaction and supportive cooperation. Hyundai Engineering has been working to achieve a great level of customer satisfaction through top technology and the best services as a leading Korean company and a global corporation. Thus, we have achieved fruitful results, such as 16-fold sales growth in the last 10 years, No. 1 in the amount of overseas construction orders obtained and No. 6 in the Appraisal of Execution Capacity in Korea. We are striving to make the leap forward by strengthening business competitiveness through management innovation, promoting prospective business and upgrading quality management. To continuously pursue the highest value, supportive cooperation with partner companies is a prerequisite. With the launch of the HEC Shared Growth Committee this year, we will continue to accelerate shared growth and to focus on communication and build trust with our partner companies as lifetime partners. Second, we fulfill our safety, health, and environmental responsibilities through HSE management. As a company that upholds the sanctity of life, preserves our environment and establishes future-oriented, absolute value, Hyundai Engineering has specified and implemented with priority our safety, health, and environmental policies. We have set up an ICT-based smart safety management system and conduct thorough safety trainings to establish a type of environment in which safety is first at all sites. In particular, we actively promote projects in GTL plant, offshore wind power and PV power generation that are both environmentally friendly and technically advanced. Moreover, we continue to strive for reduction of wastes generated from our business activities and to save energy, ultimately conserving environment. Finally, we act upon social value through talent management and sharing management. Under the new corporate culture of “Pioneer, Professional, Humanist”, we put our utmost efforts into establishing a company which our employees can feel proud to be a part of. As a global corporation, we also continue to make social contributions in Korea and overseas while creating shared value through our businesses, leading the value of sharing. Recognized for its work in local economy revitalization and job creation, Hyundai Engineering received the commendation of the “2017 President Award for Government Acclamation of Job Creation of Korea.” Dear stakeholders, Hyundai Engineering will do our utmost to provide sustainable value to stakeholders with our social responsibility while continuing to build up our stature for continuous growth. Please continue to watch over and support the ongoing growth of Hyundai Engineering. President & CEO of Hyundai Engineering Sung, Sang-Rok INTRODUCTION 06 SUSTAINABILITY STRATEGY SUSTAINABILITY ISSUES SUSTAINABILITY ENABLER APPENDIX About Hyundai Engineering 102-1, 102-2, 102-3, 102-4, 102-6, 102-7, 201-1 A Global Engineering Company that Creates the Future with the Best Technology Since its foundation in 1974, Hyundai Engineering has provided top-tier services with world-class competitiveness in various areas including process plant, power & energy plant, building & housing works, infrastructure & environment, and asset management. Hyundai Engineering provides optimized technologies and solutions catered to customer needs in the Middle East, Europe, Africa, Latin America, and Central Asia, as well as advanced markets including North America. As of June 2018, the company is doing business from 132 project sites in 30 countries and operating 17 subsidiaries and 26 branches. About Hyundai Engineering (As of the end of 2017) Company name Hyundai Engineering Co., Ltd. Russia Date of foundation February 11 1974 Address 75 Yulgok-ro, Jongno-gu, Seoul, Korea UK Germany KRW 6,326 billion (Liabilities: KRW 2,992 billion, Czech Total assets Slovakia Equity: KRW 3,334 billion) Hungary Orders received KRW 8,627 billion USA Uzbekistan Turkmenistan Sales KRW 6,268 billion China Tunisia Kuwait Iraq Korea Credit rating AA- Algeria Mexico Number of employees 5,611 India UAE Vietnam Laos Thailand Philippines Cambodia KRW 2,740 billion KRW 622 billion KRW 2,053 billion KRW 632 billion KRW 428 billion KRW 320 billion Colombia Venezuela Malaysia Equatorial Guinea Singapore Indonesia 2017 2017 Orders received Sales Brazil KRW KRW 8,627 billion 6,268 billion KRW 801 billion KRW 606 billion KRW 4,037 billion KRW 2,657 billion Business Area Process Plant Power & Energy Plant Process Plant Power & Energy Plant Petrochemicals & Thermal power & Nuclear Renewable Energy Building & Oil & Gas Refinery General chemicals power plants energy network Housing Works Infrastructure & Combined cycle power Concentrated Environment Petrochemicals, plants, Coal-fired power solar