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
2023 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
ESG 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 ESG 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.
ESG Governance
- BOD(Sustainability Management Committee)
- ESG Committee
(Hyundai Business Strategy Meeting)- Planning & Finance Division
(Sustainability Management Team)- Hyundai Motor Group ESG Council
- 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, HR
- Governance (G)
- BOD Operation
- Ethical management
BOD(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
(Sustainability Management Team)
(Sustainability Management 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
2022 Key ESG Activities and Achievements
Overall ESG
- Announced Hyundai Motor Group’s social responsibility message
-
Set 3 major mid- to long-term
directions – Move for Our Planet,
Move for our People, Move for our
Community – and 15 key management areas
- Developed HMG ESG Index and Conducted a pilot assessment
-
Established a key performance index
to improve the ESG level of the
Group affiliates and for systematic internalization
-
Established an ESG platform
(in-house ESG information management system) - Established the “integrated ESG platform” by putting together global disclosure standards and ESG evaluation indexes for systematic company-wide ESG data management
- Conducted an ESG NDR
-
Held an ESG-specialized NDR for
global investors concerning our ESG management performance and
future plans (for 28 institutional investors for 10 days)
Environmental
- Recorded 506,793 units of eco-friendly vehicle sales in 2022
-
Recorded global annual sales of
210,352 EVs and 11,217 FCEVs in 2022
- Increased the number of models subject to LCA
-
Conducted the 2022 LCA on a total
of 16 models, including all Genesis models, IONIQ 6, and NEXO
- HMMC achieved RE100
-
HMMC completed the transition
from electric energy used in the manufacturing process to 100% renewable energy
- Water reuse indicated a year-on-year increase of 5%
-
2,284,154 tons of water were reused
in 2022 with a reuse ratio of 21%
(2,179,600 tons in 2021)
Social
- Disclosed the Hyundai Diversity & Inclusion Policy and the Non-Discrimination & Anti-Harassment Policy
- Established principles aimed at realizing the values of employee diversity & inclusion and preventing issues/incidents related to workplace human rights
- Genesis ranked No. 1 in US Initial Quality Study (IQS)·US Vehicle Dependability Study (VDS)
- Ranked No. 1 in 2022 in IQS and VDS premium brand, thus proving top-level quality and safety technologies
- Recorded continuous increase in female executives, managers, engineers
-
The ratio of female executives, managers, and engineers continued to increase as a result of efforts to expand employee diversity and to build an inclusive organizational culture * Total female executive ratio
(5.38% in 2020 → 5.62% in 2021 →
6.37% in 2022)
-
Strengthened supply chain
ESG management -
Conducted a document-based assessment on a total 1,704 tier-1 suppliers and core tier-2 suppliers
and an on-site due diligence of
38 high-risk suppliers
Governance
- Third-party assessment of the BOD
- Conducted a third-party assessment for an objective assessment of adequacy of BOD composition and operational effectiveness
- Assessed the effectiveness of compliance control standards
- Conducted an annual effectiveness assessment through an external expert to examine whether the compliance control system is operated effectively
- Enhanced BOD diversity
-
Appointed an additional female independent director with expertise (labor-management, law) and an additional director with a foreign nationality (global business) * 2 female directors, 2 directors with
a foreign nationality
- Established a process for non-audit services by external auditors
- Established a process to receive the Audit Committee’s approval beforehand to sign a non-audit service contract with an external auditor to strengthen independence of external auditors
ESG Policies
ESG Assessments and ratings
Included in the DJSI World
Top 1% S&P Global ESG Score
Earned CDP Climate Change A-
Water Security A grade
Earned B+ 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.
