Hanwha Systems leads defense industry shift toward sustainability

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Hanwha Systems leads defense industry shift toward sustainability

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By

Lee Kyung-min

Published

May 6, 2026 2:22 pm

KST

Hanwha Systems corporate logo / Courtesy of Hanwha Systems

Hanwha Systems, the aerospace and defense arm of Hanwha Group, reached a milestone in corporate governance, as it became the first Korean defense firm to be included in a top-tier Dow Jones sustainability index for the Asia-Pacific region, the company said Wednesday.

The inclusion in the Dow Jones Best-in-Class Indices, an annual ranking compiled by S&P Global, places Hanwha Systems at the top of the regional aerospace and defense category. The index, which serves as a critical scorecard for the modern investor, evaluates the top 600 companies in the region and selects only those in the upper 20 percent of their respective industries based on rigorous economic and environmental, social and governance (ESG) criteria.

For a sector often scrutinized for its ethical footprint, Hanwha’s top ranking signals a significant shift in how global financial markets view the sustainability of the defense industry. The company received high marks across several metrics, including human rights management, workplace safety and the oversight of its sprawling supply chains.

The Dow Jones Best-in-Class framework, which replaced the former Dow Jones Sustainability Indices last year, reflects an updated, more demanding set of standards for corporate responsibility. Hanwha’s debut on the list is not an isolated success. It follows a five-year streak of receiving an A grade from the Korea ESG Standards Institute and a top-tier AAA rating from MSCI.

As global investors increasingly prioritize transparent management practices alongside technical prowess, Hanwha’s performance suggests that its corporate structure is now as sophisticated as the satellite arrays it produces. By leading its regional peers in these benchmarks, the company has effectively translated its domestic dominance into a new form of global recognition.

This article was published with the assistance of generative AI and edited by The Korea Times.