Kumho Tire said Tuesday it has won an AA grade in Morgan Stanley Capital International’s recent environmental, social and governance evaluation, being ranked among the top 12 percent of the automotive parts industry.
The tire manufacturer has improved its ratings every year, from a BBB grade in 2019 to an A in 2021 and an AA this year.
MSCI ESG Ratings identifies ESG risks financially material to all sectors and measures each company’s resilience to such risks relative to industry peers. The evaluation is designed to serve investors seeking to incorporate ESG considerations in their portfolios.
According to the MSCI report, Kumho Tire scored high marks in developing green tech for electric vehicles, managing environmental impact by reducing emissions of air pollutants, and fostering talent through customized programs.
“Last year we launched a dedicated ESG unit to build and strengthen our ESG management system,” said Kumho Tire CEO Jung Il-taik. “By embracing social changes, we hope to further improve our brand value and garner trust.” he added.
In a bid to realize the goal of “clean mobility,” the company supplies tires for environment-friendly vehicles like Kia Motor’s full-electric EV5 and continues related research work. The firm also aims to replace all raw materials with sustainable ones by 2050.