In the rapidly evolving landscape of corporate sustainability, mid-sized enterprises are increasingly under the microscope for their environmental practices. A recent study published in the Korean Society of Environmental Engineers Journal, sheds light on the environmental aspects of ESG (Environmental, Social, Governance) strategies within the HL Group, a conglomerate with significant operations in the mobility and construction sectors. The research, led by Junwoo Lee from the Division of Environmental Science and Ecological Engineering at Korea University, offers a compelling look at how these companies are navigating the complexities of sustainability.
The study, which analyzed sustainability reports from 2021 to 2023, focused on key environmental metrics: carbon emissions, water usage, waste generation, and energy consumption. One of the most striking findings was the disparity between Scope 1 and Scope 2 emissions across all subsidiaries. Scope 2 emissions, which are indirect emissions from the generation of purchased energy, consistently outstripped Scope 1 emissions, which are direct emissions from owned or controlled sources. This discrepancy highlights a critical area for improvement, as Lee notes, “Setting carbon neutrality goals and implementing reduction strategies, such as renewable energy development, are essential steps for these companies to take.”
In the construction sector, HL D&I Halla demonstrated notable progress in water and waste management. The company reduced water usage by 8% in 2023 compared to the previous year and achieved a remarkable 100% recycling rate for waste, a significant improvement from the 63% reduction in waste generation. These efforts underscore the potential for substantial environmental gains in the construction industry, a sector often criticized for its high resource consumption.
However, the study also revealed areas where the HL Group could enhance its environmental stewardship. Biodiversity conservation, for instance, was not identified as a significant issue by any of the companies in 2023. This oversight is particularly concerning given the increasing emphasis on biodiversity in global sustainability frameworks. “Despite their efforts in other environmental domains, all four companies need to make more concrete and practical efforts in biodiversity conservation,” Lee emphasizes.
The implications for the energy sector are profound. As mid-sized enterprises like those within the HL Group strive for carbon neutrality, the demand for renewable energy solutions is set to surge. This shift could drive innovation in clean energy technologies and create new commercial opportunities. Moreover, the focus on Scope 2 emissions underscores the need for robust energy management strategies, including the adoption of renewable energy sources and energy-efficient practices.
The research also serves as a call to action for other companies in the mobility and construction industries. By highlighting the successes and shortcomings of the HL Group, the study provides a roadmap for improving environmental performance. As Lee suggests, “Companies must not only set ambitious sustainability goals but also implement practical strategies to achieve them.”
For the energy sector, this research published in the Korean Society of Environmental Engineers Journal, signals a growing trend towards sustainability that cannot be ignored. As more companies prioritize environmental management, the demand for clean energy solutions will continue to rise, shaping the future of the industry. The insights from this study offer a glimpse into what lies ahead, challenging companies to innovate and adapt in the face of a rapidly changing environmental landscape.