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Hyundai Motor Company's the sustainable future of society

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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

2022 Sustainability Report

Road to Sustainability


We are entering an era of stakeholder capitalism, in which corporations pursue sustainable growth from the perspective of all stakeholders, including shareholders, employees, customers, suppliers, and local communities.

To nimbly repond to such shift in paradigm, Hyundai is harnessing all efforts on bolstering its sustainable ESG management.

Meanwhile, Hyundai will lead the way to create a healthier, happier, and more sustainable world for everyone under its corporate vision of "Progress for Humanity".

ESG Each Division Sustainability Report

Environmental

Social

Governance

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.

In particular, based on ESG governance that we newly established in 2020, discussions on major pending issues take place on a semi-annual basis at the Sustainability Management Committee under the BOD, which is the highest decision-making body, and the ESG Committee. In addition, we encourage each organization to autonomously carry out ESG improvement activities, such as by establishing a performance goal for each working-level division and reflecting the performance in KPIs, thereby striving to internalize corporate-wide ESG management.

Amid growing importance of responding to climate change and preventing accidents both in Korea and abroad, we created the Carbon Neutrality Execution Team and Serious Accident Prevention Team, and established a more professional and systematic management/response system.

ESG Governance

  1. BOD(Sustainability Management Committee)
    1. ESG Committee
      1. Secretary : Planning & Finance Division
        (Sustainability Management Team)
        • Hyundai Motor Group ESG Council
      2. ESG Council(Working-level divisions)
        1. Environmental (E)
          • Climate change1)
          • Operations environment
          • Product environment
          • Low-carbon products
        2. Social (S)
          • Human rights/
            HR development/
            HR management
          • Supply chain ESG
          • Quality management/
            Customers
          • Information protection/
            Innovation
          • Social contributions
          • Health & Safety2)
        3. Governance (G)
          • BOD Operation
          • Ethical management
1) 2) Created organizations in charge(Carbon Neutrality Execution Team, Serious Accident Prevention Team, etc.)

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

* Major agenda in 2021: Carbon neutrality strategies, social contribution activity details, examination of employee practice of Code of Ethics, matters related to compliance program implementation and execution plan, compliance support activity details, progress with health & safety plans, product/service trading with affiliates, etc.

ESG Committee

  • A small meeting group within the Hyundai Business Strategy Meeting. Top management in each area review/discuss ESG-related matters.

Secretary (ESG-dedicated division)
- Planning & Finance Division
(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)

  • Discuss the improvement direction of each division, implement improvement activities, and share improvement performance

ESG Performance in 2021

 

Environmental

Declared and received the approval for the joining of RE100 initiative
Developed a roadmap to replace electrify used at business sites with renewable energy by 2045
Declared 2045 net zero
Set strategies for vehicle electrification, hydrogen business synergy, carbon neutrality at business sites, encouraging auto-part supply chains to achieve carbon neutrality, and social carbon reduction
Focused on eco-friendly new business based on second life batteries
Propelled energy storage system (ESS) based on second life batteries and EV batteries remanufacturing businesses for aftersales support, and established a foundation for rare metal recycling system
Recorded annual eco-friendly vehicle sales of 422,000 units in 2021
Recorded 150,000 units of annual global sales of EVs and FCEVs in 2021

Social

Strengthened workplace safety
Appointed a Chief Safety Officer(CSO)
Strengthened supply chain ESG management
Conducted a written assessment of 400 tier-1 and core tier-2 suppliers and an onsite due diligence of 10 high-risk suppliers
Expanded the scope of employee human rights risk management
Conducted a human rights impact assessment on employees at overseas business sites in Europe, Americas, India, and China
Provided ESG-related in-house training
Provided 7,980 hours of on/offline trainings a year in areas of human rights, safety, environment, and quality
Provided online educationon ESG mindset to 22,000 staff in general/research/legal positions

Governance

Operated the Sustainability Management Committee under the BOD
Strengthened the ESG system, such as establishing major policies related to ESG and discussing improvements
Enhanced BOD diversity
Appointed a director with a foreign nationality (global business field) and a female director (field of guaranteeing stability of intelligent transportation systems)
Strengthened shareholder communication
Provided an online real-time broadcasting service for shareholders who couldn’t attend in person
Held a presentation on areas of interest of shareholders (General shareholder’s meeting in March 2021 – Automobile market outlook)
Provided compliance training
Provided compliance training 11 times to employees in Korea (21,567 persons attended) and 9 times to overseas employees (80 persons attended)

ESG Policies

Ethics Charter and Code of Conduct

Human Rights Policy

Supplier Code of Conduct

Conflict Minerals (Responsible Minerals) Policy

Conflict Minerals Report (Responsible Minerals Report)

Environmental Management Policy

Privacy Policy

Anti-Corruption/Bribery Policy

Carbon Neutral Guide for Suppliers

Occupational Health & Safety Policy

Diversity & Inclusion Policy

Non-Discrimination & Anti-Harassment Policy

Advertising & Marketing Ethics Declaration

Biodiversity Protection Policy

No Deforestation Policy

ESG Assessments and Ratings
Dow ESG Assessments and RatingsJones Sustainability Indices

Included in the DJSI World

(in 2021)
CDP

Earned CDP Climate Change B, Water A- grade

(in 2021)
KCGS

Earned A grade in the 2021 ESG ratings by KCGS

(A for Environmental, A+ for Social, A for Governance)
sustainalytics

Risk Ratings Score : 30.9 (in 2021)

MCSI ESG Ratings

Maintained the ESG rating of B

(in 2021)

‘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.

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