Hanwha Systems has become the first South Korean defense company to be included in the DJ BIC Asia Pacific Index, a regional sustainability benchmark compiled annually by S&P Global.
The company also ranked first among aerospace and defense firms in the Asia-Pacific region in this year’s evaluation, strengthening its position as a leading ESG-focused player in the defense and space industries.
The DJ BIC indices, formerly known as the Dow Jones Sustainability Indices (DJSI), were reorganized under a new branding structure last year. The benchmark evaluates companies based on a broad range of financial, governance, environmental and social criteria.
The Asia-Pacific index specifically assesses the ESG performance of the region’s 600 largest companies, with only the top 20% in each industry category qualifying for inclusion.
Industry analysts say Hanwha Systems’ inclusion is particularly notable because defense companies have historically faced greater scrutiny from ESG-focused investors due to governance, supply chain and ethical concerns linked to the industry.
According to the company, strong evaluations across multiple categories — including human rights management, environmental policy, workplace safety and supply chain oversight — contributed to the latest recognition.
Over the past several years, Hanwha Systems has expanded ESG-related governance systems while increasing transparency and compliance efforts as part of its broader global business strategy.
The company said the recognition reflects growing international acknowledgment of its sustainability management framework and could help strengthen confidence among global investors and business partners as it expands overseas operations.
Hanwha Systems has consistently received favorable ESG evaluations from both domestic and international rating organizations. The company has maintained an overall “A” rating from the Korea ESG Standards Institute for five consecutive years and previously earned the highest possible “AAA” rating in the ESG assessment conducted by MSCI.
Last year, the company also became the first South Korean defense firm to be newly added to the Korea index of the former Dow Jones Sustainability Indices framework.
As ESG standards become increasingly important in global capital markets, companies in traditionally industrial and defense-oriented sectors are facing growing pressure to demonstrate stronger sustainability credentials alongside technological competitiveness.
