Our commitment to sustainability
In the Fourth Industrial Revolution era, industry boundaries are disintegrating amid a rise of convergence and change. Mindful of such global megatrends, Hyundai is accelerating its innovation drive powered by an advanced technical prowess. Ever present in Hyundai’s 50-year journey has been the notion of the human race. Without aspirations for humankind, our technological innovations would have been impossible. As an extension of our ever-hopeful journey, in 2019 we adopted a new brand vision “Progress for Humanity” as a way to confirm our determination to create more valuable time for all humanity. Hyundai is now going beyond being an automobile manufacturer to become a mobility solution provider that allows people to easily move and connect with one another, spaces and places, and thus enabling them to make their time more valuable. We will provide mobility services that make every moment of life more valuable than before by more thoroughly understanding people’s daily lives, in our journey toward progress for humanity.
One thing will remain constant and abiding: Hyundai Motor Company’s management philosophy that places humanity above all other considerations.
Based on this immutable belief, we will take the lead in creating a sustainable future in which all mankind can live safely and healthily while enjoying freedom of movement and the unique offerings of our lives.
Jaehoon Chang,
President and CEO, Hyundai Motor Company
2024 Sustainability Report
Road to Sustainability
Comprehensive ESG regulations at home and abroad are gaining momentum, thereby making it mandatory for companies to disclose ESG information.
We are committed to enhancing the transparency and proactiveness of our ESG information disclosure, aiming to meet the steadily increasing external expectations and foster ongoing communication with diverse stakeholders.
Hyundai Motor Company remains steadfast in its commitment to embedding ESG management practices, guided by our corporate vision of "Progress for Humanity", as we strive towards a sustainable future
Sustainability Management
Hyundai is strengthening management activities to preemptively identify and remove risk factors related to ESG, and explores new business opportunities and strives to secure a new competitive edge by strategically using various ESG factors. Based on our sustainability governance, we discuss pending issues at the Sustainability Management Committee under the BOD, the highest decision-making body, and the ESG Committee. In addition, we encourage each organization to autonomously strive for ESG improvement by establishing a performance goal for each working-level division and reflecting the performance in KPIs, thereby building a culture of ESG.
Sustainability Governance
- BOD
(Sustainability Management Committee)- ESG Committee
(Hyundai Business Strategy Meeting)- Planning & Finance Division
(ESG Planning Team) - ESG Council
- Environmental (E)
- Climate change
- Operations environment
- Product environment
- Low-carbon products
- Social (S)
- Human rights,
HR development,
HR management - Supply chain ESG
- Quality management, Customers
- Information protection
- Innovation
- Social contributions
- Health & Safety
- Human rights,
- Governance (G)
- BOD Operation
- Ethical management
BOD
(Sustainability Management Committee)
(Sustainability Management Committee)
- Strengthens the ESG management system, such as establishing major ESG policies and discussing improvement plans
- Examines/supervises plans and execution in relation to major issues, including safety, health, and ethics
- Reports and deliberates/decides on major pending issues related to ESG on a semi-annual basis
ESG Committee
- A small meeting group within the Hyundai Business Strategy Meeting. Top management in each area review/discuss ESG-related matters.
Planning & Finance Division
(ESG Planning Team)
(ESG Planning Team)
- Establish/advance the system
- Establish a reporting system, set up ESG management indexes, and build a data platform, etc.
- Internalize ESG management
- Provide support for employee ESG training and KPI reflection, etc.
- Induce/implement improvement activities
- Handle collaboration/mediation to identify matters that require improvement and implement improvement activities, etc
- Disclose information/communicate
- Sustainability Report publication, ESG evaluation responses, stakeholder communication, etc.
ESG Council
(Working-level divisions)
(Working-level divisions)
- Discuss the improvement direction of each division, implement improvement activities, and share improvement performance
Key Sustainability Activities and Achievements
Environmental
- Sold 695,382 eco-friendly vehicles
-
Recorded annual global EV sales of
268,785 units in 2023, up 28% from 2022
- Increased the number of business sites that have achieved RE100
-
Achieved RE100 at Hyundai Motor
Manufacturing Indonesia in 2023 following
Hyundai Motor Manufacturing Czech in 2022 -
Increased the use of renewable energy at
our global sites by 69% compared to 2022
- Increased the number of models subject to LCA
-
Completed LCAs for a total of 25 vehicle
models, including five new models in 2023,
achieving an LCA rate of 40.9% for all
vehicles sold
- Increased the volume of water reuse by 15.2% compared to 2022
-
Recycled a total of 2,631,445 tons of
water, achieving a recycling rate of 23.8%
(2,284,154 tons in 2022)
Social
- Made amendments to the Human Rights Charter and expanded of human rights due diligence
-
Aimed at expressing our intention to
strengthen human rights management Emphasized the principle of zero tolerance for child
labor and forced labor; and established a new principle of guaranteeing environmental rights -
Enhanced our human rights risk due
diligence indicators and expanded their
scope Targets: Businesses with 300 or more employees in
2022 → 100 or more in 2023 Assessment rate: 100% (2023)
- Strengthened supply chain sustainability management
-
Introduced the risk screening of forced
labor for our tier-1 suppliers and ran a
supply chain mapping pilot program -
Expanded our ESG assessment scope to
overseas supply chains [372 companies in
Korea and 1,082 companies overseas]
- Reduced the LTIFR (lost time injury frequency rate) of employees and suppliers through enhanced health and safety management and safety accident prevention activities
- Employee LTIFR: 1.94 → 1.89
- Supplier LTIFR: 1.53 → 1.05
- Conducted ESG diagnosis and due diligence of business sites
-
Performed ESG diagnoses and due
diligence to prevent potential ESG risks at
our business sites with the aim of chieving
advanced ESG standards [58 major
domestic and overseas business sites – 34
in Korea, 24 overseas]
Governance
- Enhanced BOD diversity
-
Appointed an additional female
independent director with expertise
(labor-management, law) and an
additional director with a foreign
nationality (global business)
- Disclosed the Board Skill Matrix
-
Disclosed the competencies and
diversity of each member of our BOD in a
tabular format to ensure adequacy of the
Board composition and its operational
efficiency
- Strengthened the ESG governance through enhanced BOD management and oversight
-
Changed the ESG items of agenda* from
“report” to “approval” status * Proposed/approved the “core task proposal for carbon
neutrality” in 2023 and “Hyundai’s ESG management
direction” in 2024
- Updated the Fair Trade Compliance Guide
-
Developed a guide that includes
amendments to the Fair Trade Act, recent
legal cases and laws, guidelines on
employee conduct, and a personal
checklist for easy reference
Sustainability Management Policy
2023 ESG Assessments and ratings
Included in the DJSI World
Top 1% S&P Global ESG Score
Earned CDP Climate Change A grade
Water Security A- grade
Earned A grade
Risk Ratings Score : 27.3
The ESG rating of CCC
‘Hyundai Continue’ represents our commitment to the sustainable future that
Hyundai Motor Company pursues.
It’s an endeavor to allow the planet and humans to coexist in harmony.
It’s an effort to make time more valuable through freedom in mobility.
And it’s a realization of the hope of future generations who dream of tomorrow.
We need to continue, connect, and be connected.
Hyundai Motor Company commences its transformative efforts for a sustainable future with ‘Hyundai Continue’.
Area of focus
Hyundai Motor Company will ‘Continue’ to take care of the planet we live on.
We are connected as one within the ecosystem of the Earth.
Hyundai Motor Company is advancing the coexistence of humankind and the planet by means of technology that will connect them to each other.
In this way, Hyundai Motor Company will continue to work toward the harmonious coexistence of humankind and Earth.
Hyundai Motor Company will ‘Continue’ to innovate for a new mobility.
We will create a sustainable way for anyone to move freely at will.
We will create a new concept of mobility, enabling quality time to be spent in transit, and enabling people to experience complete freedom of mobility.
In this way, Hyundai Motor Company will continue to realize freedom in mobility and connection.
Hyundai Motor Company will ‘Continue’ to create hope for future generations.
We are connected as members of a global society, beyond companies and customers.
We will work together to create a sustainable future so that generations to come can dream and take on new challenges.
In this way, Hyundai Motor Company will continue to create hope for future generations.
