Environmental Aspects in ESG Strategies for Mid-sized Enterprises: The Case of HL Group

This study aims to analyze HL groups’ corporate efforts concerning the environmental (E) aspects of ESG (Environmental, Social, Governance) practices and propose future considerations. The analysis examined sustainability reports from 2021 to 2023 for HL groups’ subsidiaries – HL Holdings, HL Mando, HL D&I, and HL Klemove. The study focused on carbon emissions, water usage, waste generation, and energy consumption. Additionally, activities related to biodiversity conservation were examined through keyword analysis, materiality analysis, and adherence to GRI 304 Standards. In terms of carbon emissions, for all companies, Scope 2 emissions were higher than Scope 1 emissions. Therefore, it is necessary to set carbon neutrality goals and implement reduction strategies such as renewable energy development. In terms of water usage, HL D&I Halla transparently disclosed the water usage during the construction process and reduced its water usage by 8% in 2023 compared to 2022. Regarding waste emissions, HL D&I Halla reduced waste by 63% in 2023 compared to the previous year and achieved a 100% recycling rate. For energy usage, it was confirmed that all companies are voluntarily making efforts to reduce their energy consumption. In a comparison with other companies in the mobility industry, HL Mando showed an increase in all factors except for Scope 1 emissions. However, the company is making efforts towards eco-friendly management by establishing an environmental department and setting carbon neutrality goals. In the construction industry, HL D&I Halla showed a decrease in all analyzed factors. In terms of biodiversity conservation, no company selected biodiversity as a significant issue in 2023. Despite HL groups’ efforts in the environmental domain, some companies were found to have insufficient performance in eco-friendly management. Specifically, regarding biodiversity conservation, all four companies need to make more concrete and practical efforts in the future.