Dear Respected Stakeholders
In 2022, Kumho Tire achieved remarkable results such as a 37% year-on-year increase in sales and a turning to profit with 2.31 billion won in operating profit as a result of labor and management working together to normalize management despite difficulties such as the instability of the international situation and the global economic recession. For sustainable growth, we are advancing the ESG management system and responding to the business paradigm shift according to the 2045 Net-Zero roadmap. It is expected that prompt and sufficient information disclosure through the 2023 Sustainability Report will play an important role in seeking interest and support beyond trust from various stakeholders.
In 2023, we plan to focus on internalizing the ESG management system. ESG management is an irresistible trend of the times and an essential agenda for corporate sustainability. In 2023, the ESG Committee was newly established under the Board of Directors, in order to manage and supervise ESG management at the board level and faithfully reflect environmental, social, and governance perspectives in major decision-making. With the ESG Committee, ESG Management Committee, and 5 Working Groups, we will make swift decisions and implement them on the spot.
We will implement practical reductions based on the Net-Zero action plan. Governments and automakers around the world are accelerating an institutional basis for carbon neutrality. The era of presenting numerical targets for carbon neutrality has passed, and ESG management and carbon reduction must be implemented in order to sustain business and strengthen competitiveness. In July 2022, we joined the SBTi (Science-Based Target Initiative) to establish reduction targets that meet global standards, and plan to implement them company-wide through the establishment of a carbon neutral master plan. We will systematically manage not only Scope 1 and 2, but also Scope 3 emissions in the supply chain.
We will lead mobility paradigm shift. The automobile industry is currently facing the rapid transition to the electric vehicle market and changes to a mobility paradigm. Kumho Tire is preparing to discover opportunities and strengthen its differentiated competitiveness amid these changes. Through research and development of tires for electric vehicles, Kumho Tire's technological prowess is recognized both locally and internationally, and increase of efficiency and innovation in the product development process is being promoted through the digital twin system using AI and big data.
We would like to ask for active interest and support from stakeholders in the future of Kumho Tire's changes and challenges.
CEO of Kumho Tire