Hyundai Motor Company's the sustainable future of society

Two children are walking through the rainforest, looking at the branches.

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.

2025 Sustainability Report

sustainability_report_2025

Road to Sustainability

Our Vision, ‘Progress for Humanity’ reflects our belief that advancing emissions-free mobility is not only sound business, but a shared responsibility to ensure cleaner air, stronger economies, and a better quality of life for future generations.

At the heart of Hyundai’s vision is our commitment to sustainability, and our Sustainability Report provides a snapshot of our performance and our promise to future generations.

We will work alongside our stakeholders to pursue sustainability through positive change by minimizing both financial and non-financial sustainability-related risks while creating long-term business value.

Past report

ESG Each Division Sustainability Report

Sustainability Management

While adopting a more rigorous management approach to proactively identify and prevent ESG-related risks, we also leverage a range of ESG factors from a strategic vantage point to uncover new business opportunities and seize new competitive advantages. On the back of sustainability management governance, major pending issues are discussed at the Sustainability Management Committee under the Board of Directors which is our highest decision making body. To prevent a variety of ESG risks from ever occurring, we select and undertake top priorities each year and report the progress and outcomes to the Committee. Key sustainability management goals are also defined, and corresponding targets are set at the working-level division and are incorporated into KPIs. This encourages respective organizations to take the lead in pursuing ESG improvements, embedding ESG management at all levels of the company.

Sustainability Governance

  1. BOD
    (Sustainability Management Committee, including CEO)
    1. C-level Management
      Committee Meeting
      1. Strategy & Governance
      2. ESG Council
        1. Environmental (E)
          • Climate change
          • Operations environment
          • Product environment
          • Low-carbon products
        2. Social (S)
          • Human rights,
            HR development,
            HR management
          • Supply chain ESG
          • Quality management, Customers
          • Information protection
          • Social contributions
          • Health & Safety
        3. Governance (G)
          • BOD operation
          • Ethical management

Our Journey towards Sustainability

Environmental

Increasing the sales of eco-friendly vehicles
Achieved 757,195 in annual sales of eco-friendly vehicles(EV, HEV, PHEV, FCEV) in 2024 ※ 9% up from 2023
Increasing the use of renewable energy
Signed the nation’s largest-ever PPA (444MW) in 2024 for domestic operations (Ulsan Plant, Asan Plant, Jeonju Plant, Namyang R&D Center and others)
30% increase in global total renewable energy consumption in 2024 from 2023
Increasing the number of models subject to LCA
Completed LCAs for a cumulative total of 36 models*, including 15 new models, in 2024 to achieve an LCA coverage rate of 62.2% against total vehicle sales * Excluding models whose sales discontinued as of 2024
Enhancing water recycling performance
Achieved a 11.3% year-on-year increase in water recycling in 2024
Increased the recycling rate to 28.7% in 2024, 5% rise from 2023

Social

Reinforcing sustainability management along the supply chain
Join the global sustainable supply chain initiative
(Responsible Business Alliance, Drive Sustainability)
Operated supply chain mapping and risk screening programs
Setting goals for employee diversity
Ratio of global female managers(15% in Korea, 27% overseas by 2030)
Education completion rate of diversity awareness training across our global sites (50% in 2025)
Recruitment of people with disabilities in Korea
(100 persons in 2025, 150 persons in 2026, 200 persons in 2027)
Conducting global human rights management education
Provided Diversity & Inclusion (D&I) education to all employees worldwide
Conducted human rights management education to employees working in relation to human rights ※ HR, ER, health & safety, procurement, customer service, promotion & marketing
Conducting human rights/ethics due diligence on business sites
Introduced indicators for identifying human rights/ethics to upgrade standards, and reviewed progress on issues flagged for improvement throughon-site audit [Implemented across 74 business sites(33 in Korea, 41 overseas)]

Governance

Appointing a lead independent director and establishing the Independent Director Meeting
Ensure a lead independent director convenes and chairs the Independent Director Meeting attended exclusively by independent directors to gather their feedback through discussion and present it to the Board of Directors ※ Supporting free-flowing communication among shareholders, the Board of Directors, and management
Enhancing the Independence of Committees under the Board of Directors
Classification Previous
(proportion)
Current
(proportion)
Compensation
Committee
Internal director: 1 person (33%) Internal director: None (0%)
Independent director: 2 persons (67%) Independent director: 3 persons (100%)
Recommendation Committee on Candidates for Independent Directors Internal director: 2 persons (40%) Internal director: 1 person (25%)
Independent director: 3 persons (60%) Independent director: 3 persons (75%)
Improving the Diversity of the Board of Directors
Classification Previous
(proportion)
Current
(proportion)
Female director 2 persons (17%) 4 persons (33%)
Foreign director 2 persons (17%) 3 persons (25%)
Embedding ESG into the investment process
Established and implemented an ESG risk review process considering the environmental and social impacts of project undertakings within the investment review process related to plant construction/expansion

Sustainability Management Policy

Environmental (E)

  • Environmental Management Policy

  • Biodiversity Protection Policy

  • No Deforestation Policy

  • Carbon Neutral Guide for Suppliers

Social (S)

  • Human Rights Charter

  • Diversity & Inclusion Policy

  • Non-Discrimination & Anti-Harassment Policy

  • Occupational Health & Safety Policy

  • Privacy Policy

  • Information Security Policy

  • Community Engagement Policy

  • Supplier Code of Conduct

  • Conflict Minerals (Responsible Minerals) Policy

  • Conflict Minerals (Responsible Minerals) Report

  • Responsible Raw Materials Procurement Policy

  • Supply Chain Sustainability Management Policy

Governance (G)

  • Ethics Charter & Code of Conduct

  • Anti-Corruption & Bribery Policy

  • Advertising & Marketing Ethics Declaration

  • Tax Policy

2024 ESG Assessments and ratings

  • 2024 ESG Assessments and Ratings
  • Dow Jones Sustainability Indices

    Included in the DJSI World

  • CDP

    Climate Change A grade

    Water Security A grade

  • Korea Esg Sustainability Original

    Earned A grade

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

    Risk Ratings Score : 24.8

    (Medium Risk)
  • MCSI ESG Ratings

    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

  • Earth
  • Mobility
  • Hope

Read more about the Carbon Neutrality Vision