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
2021 Sustainability Report
Hyundai Motor Company is committed to ESG management to bolster its sustainable management. By focusing on environmental (E), social (S), and governance (G) operations the company will also create economic value - the fundamental goal of any business enterprise.
These ESG factors are included in the company's 2025 mid-to-long term innovation strategy. This strategy centers on building solid foundations for future growth, increasing competitiveness in innovative, and environmentally friendly future businesses, and strengthening customer-oriented quality management operations. Taken together, these goals strengthen the company's strategic vision of becoming a global "Smart Mobility Solutions Provider".
Hyundai will lead the way into the future by seizing the initiative to create a healthier, happier, and more sustainable world for everyone under its corporate vision of "Progress for Humanity".
ESG Management
Hyundai Motor Company takes whatever steps are necessary to identify ESG risk factors in advance, and establishes management activities to minimize their negative impacts on its business. It also explores new business opportunities and creates new value through its strategic focus on ESG. The ESG governance policies and programs that it newly established in 2020 set ESG goals for each division that reflect the results of the KPIs accumulated by each of them. The company regularly convenes management-level meetings to share ESG issues and concerns.
ESG Directions
ESG Management
Approach 1.
ESG Risk Management
Reducing the possibility of
financial risks arising
from non-financial
factorsApproach 2.
Strategic Focus on ESG
Capture new market
opportunities and
enhance the competitive
capability
ESG
Governance
- BOD reports
- Management meetingManag- ement meeting
- Working-level divisions
Sustainability Management Committee
ESG Committee*
* A small meeting group within the Hyundai Management Strategy Meeting)
Corporate Strategy Division
Environmental (E)
Climate change /
Operations environment /
Product environment /
Low-carbon products- Climate change
- Operations
environment - Product environ-
ment - Low-carbon
products
Social (S)
Human Rights / HR Development /
HR Management / Social
Contributions / Health and Safety /
Customers / Quality Management /
Supply Chain ESG / Information
Protection / Innovation- Human Rights
- HR Development
- HR Management
- Social
Contributions - Health and Safety
- Customers
- Quality
Management - Supply Chain
ESG - Information
- Protection
- Innovation
Governance (G)
Board of Directors /
Compliance and Ethics- Board of Directors
- Compliance
Ethics
ESG Performance
Hyundai is committed to disclosing its performance in each field according to its ESG management activities in 2020.
Environmental
- Cumulative sales of electrified vehicles, including electric vehicles.
Recorded total sales of 1.6 million units as of 2020 - Annual global sales of EVs and FCEVs in 2020 surpassed 100,000 units for the first time
- Reduced carbon emissions from vehicles in the European market by 30%
- Average carbon emissions of the company’s vehicles sold in the European market in 2020 fell by 30% compared to 2010
- Increased use of renewable energy by overseas subsidiaries
- 28% of Hyundai Motor India’s (HMI) total electricity use comes from renewable energy.
- It generates its own electricity using photovoltaic power, and purchases photovoltaic/wind power
- Built the second life EV battery circulation process
- Developed the second life EV battery-based energy storage system (ESS) business
- Issued KRW 400 billion in green bonds
- Issued green bonds in February 2021 to increase investments in future mobility including EVs
Social
- Strengthened employee human rights risk management
- Developed employee human rights risk assessment indicators
- Conducted human rights risk assessment at all business sites (100%) in Korea
- Strengthened supply chain ESG Management
- Developed supply chain ESG assessment indicators and processes (ethics, the environment, labor/human rights, safety/health, management system)
- Conducted ESG risk assessment of all key Tier 1 and Tier 2 suppliers (100%)
- Strengthened workplace safety
- Achieved zero critical accidents at workplaces for fourth consecutive year in Korea (2017 to 2020)
- Strengthened critical accident prevention and response system
- Strengthened activities to reduce incidence of serious accidents at suppliers’ facilities
- Provided ESG-related in-house training
- 6,120 training hours per year in areas of human rights/safety/environment/quality
- Provided assistance for dealing with COVID-19
- Provided supports for stakeholders (suppliers, dealers, employees, and customers)
- Hyundai Motor Group contributed KRW 120 billion worth of financial assistance for suppliers suffering liquidity crunches
- Carried out community-based contribution activities to deal with COVID-19 at all domestic and overseas workplaces, including donations of disinfection and relief goods
Governance
- Enhanced diversity of BOD
- Appointed first woman non-executive director, an expert in the field of safety of intelligent transportation and autonomous unmanned systems
- Made exercising shareholders’ voting rights easier and more convenient
- Introduced voting system allowing shareholders to exercise their voting rights using computers or mobile devices
- Established Sustainability Management Committee under BOD
- Renamed Corporate Governance & Communications Committee. Added ESG, safety and health-related plans, and implementation checking functions to its responsibilities.
- Established ESG Committee and working-level consultative groups at each division
- Deliberated on ESG-related issues, decision-making, and performance sharing, promoted ESG improvement activities within each division.
- Strengthened guidelines for appointing BOD members
- Rewrote appointment requirements to increase diversity and independence of BOD
Included in the DJSI Korea
Earned CDP Climate Change A-, Water A- grade
Joined the Carbon Management Honors Club
Received the CDP Water Korea Best Awards
Earned A grade in the 2020 ESG ratings by KCGS
Recorded 36 points in 2020
Maintained the ESG rating of B
Contributing to the local communities
In order to fulfill our responsibility as another citizen of the community, Hyundai undertakes a wide range of dedicated social contribution activities from reducing fine dust emissions and preventing traffic accidents, especially those involving children, to nurturing local community and growing future generations.
