Kumho has been ranked among the top 12 per cent of the automotive parts industry in the environmental, social, and governance (ESG) evaluation, recently conducted by Morgan Stanley Capital International (MSCI).
The company received a BBB grade in 2019, an A grade in 2021, and an AA grade this year, meaning its evaluation score has been steadily rising year-on-year.
MSCI ESG Ratings is an ESG evaluation model developed in order to build and manage investment portfolios. Companies are rated on a scale of AAA (leader) to CCC (laggard) according to their exposure to industry-specific ESG risks and risk management capabilities relative to their peers.
According to the MSCI report, Kumho received excellent reviews for ‘environmental impact management’, such as ‘eco-friendly technology’ – for example reducing toxic emissions and developing EV products.
In addition, it was recognised for its competency in the customised talent development programme, while in terms of quality and safety it was deemed to show an industry-leading management case.
Last year, Kumho established a new division specifically in order to speed up the establishment and internalisation of its ESG management system.
Kumho CEO Jung Il-Taek said: “We will improve the future value of our business and increase trust in it by responding to social requirements.”
Meanwhile, Kumho obtained a B+ grade in a corporate sustainability management evaluation conducted last year by the Korea Corporate Governance Service – an improvement on the previous year’s results.
Cleaner motoring – standard on the award-winning Kia EV6
The company says that it is also pursuing clean mobility and increasing its sustainable credentials by supplying tyres for the EV6, Kia’s impressive battery electric vehicle – which recently won both the Irish and European Car of the Year 2022 awards, among many other titles globally.
Low noise Kumho all-season Crugen HP71 and high-performance Ecsta PS71 tyres in 235/55R19 size – both being original equipment on the multi-award winning Kia EV6.
Furthermore, Kumho says that it is actively researching natural raw materials and improving tyre recycling technologies so as to replace 100 per cent of raw materials with sustainable ones by 2050.