HMM wins top ESG rating among global shipping companies

S.Korean shipper achieves Low ESG Risk from Netherland-based Sustainalytics, recognized for excellence in safety management

HMM wins top ESG rating among global shipping companies
Jae-Fu Kim 1
2023-08-17 14:40:27 hu@hankyung.com
ESG


South Korea’s No. 1 container transportation and shipping service HMM Co. has secured the premier position in global shipping for its environmental, social, and governance (ESG) practices, as ranked by Sustainalytics, a leading global ESG rating agency.

The company achieved an ESG risk rating of 15.4, marking the lowest risk score across the international shipping sector. This stands in stark contrast to last year's rating of 24.8, indicating marked progress in HMM's sustainability initiatives.

In a competitive arena, HMM outshined industry giants, including Maersk, which scored 17.4, CMA-CGM with 19.3, and Evergreen at 21.5.

Sustainalytics' methodology centers around assessing companies based on their risk exposure, management capabilities, and information available to the public. Its multifaceted scoring system, which is dissected into five categories, serves as a pivotal tool for institutional investors worldwide, often parallelly consulted alongside the MSCI index.

Closer to home, HMM's dedication to excellence was again highlighted in June, when it clinched the "AA grade" in Korea Asset Management Corp. (Kamco) 's ESG evaluation of 23 Korean shippers. KAMCO's in-depth assessment, driven by a panel of experts from the shipbuilding and maritime sectors, places companies on a seven-tier grading scale, ranging from S to D (S, AA, A, BB, B, C, D).

Further accolades in HMM's sustainability portfolio include two consecutive Gold grades from global ESG assessor EcoVadis and a commendable A grade from the Korea Institute of Corporate Governance and Sustainability. Additionally, the firm has garnered an A- rating from South Korea's top three credit evaluation institutions.

Write to Jae-Fu Kim at hu@hankyung.com
#HMM #ESG #Sustainalytics #ESG risk rating #low

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