Jaeman Lee of Tongsuh Petrochemical, Executive Officer of Purchasing and head of the ESG team
Tongsuh Petrochemical Corporation is a leading Korean company known for its world-class production of acrylonitrile (AN), used in ABS resin for household appliances and acrylic fibers. Founded in 1969 in Ulsan, South Korea’s largest industrial city, Tongsuh is a major player in the petrochemical sector.The company first undertook an EcoVadis assessment in 2023, and earned a gold medal in 2024 for their efforts in sustainable procurement.
We interviewed Jaeman Lee, Executive Officer of Purchasing and head of the ESG team, to discuss the company's commitment to sustainability and progress over the past year.
Your company has many global clients. How do you perceive the state of sustainability in the petrochemical industry?
With interest in sustainability rising worldwide, ESG management and reducing greenhouse gas (GHG) emissions are critical issues for the petrochemical industry. European customers, in particular, are rapidly advancing in sustainability initiatives due to directives like the Corporate Sustainability Due Diligence Directive (CSDDD) and Carbon Border Adjustment Mechanism (CBAM).
In South Korea, ESG management is less prevalent than in Europe and the U.S., but major petrochemical companies, including ours, export extensively. Therefore, meeting the standards demanded by global companies is increasingly essential to enhance international competitiveness.
Have you noticed differences between sustainability awareness and initiatives at Korean and Japanese companies?
I don't think there is a significant difference between Korean and Japanese companies. However, in Korean culture decisions are usually made faster, and once we commit to sustainability we progress quickly.
Tongsuh Petrochemical’s factory in Ulsan, South Korea
Can you tell us about your company's sustainability initiatives?
As a manufacturer of chemical products, we have adopted ISO 9001 for quality management and ISO 14001 for environmental management to focus on quality control and environmental preservation. In 2021, we established an ESG team that reports directly to the CEO. The team meets monthly to study and discuss sustainability and ESG-related topics.
In 2022, we became the first AN manufacturer in Asia to receive ISCC PLUS certification, which is given to companies using sustainable raw materials. We also began producing AN from biomass raw materials.
Additionally, we spent about a year focusing on redefining our company’s purpose, vision, and mission. This process underscored the importance of sustainability.
Our current purpose is to provide products that support people's lives safely and stably. Our vision is "Creating a Sustainable Future through Coexistence with the Global Environment," and we have outlined four missions for our employees to practice. Among these missions, we emphasize leading deoxygenation efforts in our regional supply chain, providing products such as Bio AN, in collaboration with local suppliers and customers in Ulsan.
How are you working to embed your company’s purpose, vision, and mission internally?
We announced our new purpose, vision, and mission at the end of 2023. Following this, the ESG team promoted various initiatives, such as subsidizing the purchase of tumblers to reduce paper cup and plastic bottle waste and placing ESG-related books in common areas for employees. We also plan to hold town hall meetings to facilitate dialogue between management and employees about sustainability.
Tongsuh’s ESG Team working at the Seoul office
What motivated you to undergo an EcoVadis assessment?
Several clients, including major European companies dealing with ABS resin, requested it. There are multiple third-party sustainability assessment organizations, however, we were attracted to EcoVadis for its comprehensive, multi-departmental evaluation. We believed that EcoVadis would provide us with an objective understanding of where we were at the time and the challenges we needed to address.
What challenges did you face during your first assessment?
We handled each of the four EcoVadis themes— Environment, Labor and Human Rights, Ethics, and Sustainable Procurement—separately, by different departments, which made collecting information challenging. The ESG team managed the preparation, but many members had dual responsibilities so the work was demanding. We designated department-specific responsibilities, held monthly progress meetings, and streamlined our processes.
Additionally, departments had different document formats, requiring us to gather formal evidence aligned with EcoVadis standards, which was also challenging.
For the 2024 assessment, we created set guidelines, standardized document formats, and a shared server for easier access to all information, making the process significantly more efficient. We also now submit our EcoVadis results instead of individual sustainability audits, which has also proven beneficial.
What changes have there been internally following the EcoVadis assessment?
The assessment and our broader ESG efforts have begun to shift employees' attitudes towards sustainability. Initially, there was some apprehension due to the increased workload, but achieving a Gold Medal highlighted the significant value of our sustainability efforts internally.
The quality assurance team at the Ulsan factory
How have external stakeholders responded to your assessment results?
Our initial assessment in 2023 earned a Bronze Medal, but since we achieved a Gold Medal in 2024, customers have responded positively to this rapid improvement. Some clients have even expressed a desire to collaborate with us in pursuing sustainability, which is encouraging.
Pyongyu Park and Jaeman Lee of the ESG team
What advice would you give to companies looking to start their sustainability initiatives?
Sustainability requires a steady, long-term commitment. Leadership must demonstrate strong commitment and translate their vision into visible forms to avoid superficial ESG goals.
We have only just begun our long journey toward sustainability, so while we are not yet in a position to offer advice, however, I recommend understanding that it is a time-consuming process. Integrate it into your medium to long-term business plans and proceed with perseverance and patience.
Tongsuh Petrochemical Corporation (TONGSUH PETROCHEMICAL CORPORATION, LTD.)
Tongsuh Petrochemical Corporation (tspc.co.kr)
Company Overview
Founded in South Korea in 1969, Tongsuh Petrochemical is a petrochemical manufacturer with 226 employees. The company handles products such as acrylonitrile (AN), sodium cyanide (NaCN), and acetonitrile (MeCN). In 1998 the company became a wholly-owned subsidiary of Asahi Kasei, leveraging the group's technical expertise and know-how to reduce environmental impact and contribute to global chemical industry development.
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