As Hyundai’s highest decision-making body, the BOD is operated with the goal of achieving sustainable and balanced growth based on the company’s Articles of Incorporation by faithfully supervising the activities of management. We have established independence and diversity policies for our independent directors, appointed directors with expertise, and enacted the Corporate Governance Charter in an effort to build a better governance system.

Recommendation Commiittee for Independent Directors to recommend appropriate directors with expertise and potential contribution to the board. Hyundai’s BOD has developed and launched an internal accounting control system with the aim of providing reasonable assurance that the company’s financial statements are prepared and disclosed in accordance with the generally accepted accounting standards. All evaluation of the operational status of the Internal accounting system is reported to the Audit Committee to be thoroughly evaluated and approved. Compensation for directors is executed within the limits determined at AGM and is determined through deliberation by the Compensation Committee. Lastly, the Sustainability Management Committee serves for the rights of shareholders, business ethics, and looks over ESG agenda at HMC.

In order to prevent and discover any potential human rights risks within the supply chain, HMC is running a risk assessment process with employees and supply chain companies. Following this process, HMC evaluates any risk factors at our business sites, joint ventures, or supply chain activities.

All suppliers that signed a contract with Hyundai must comply with the Supplier Code of Conduct and also recommend compliance with matters specified in the Code of Conduct to the overall supply chain, including companies they trade with (second-tier suppliers).

Suppliers must consider the matters presented in the Code of Conduct in their management decision-making and business operation processes, and actively respond to an ESG risk diagnosis and due diligence that Hyundai carries out directly or through a third-party organization. In addition, in accordance with Hyundai’s risk improvement recommendations, suppliers must establish a risk mitigation plan and implement measures based on mutual discussion. The BOD supervises and reviews important matters related to supply chain ESG management plans and programs.