Hyundai

RATING

SECTOR

Automotive (Automotive and Suppliers)

WEBSITE

CONTACT

Seoul HQ
12, Heolleung-ro

STOCK EXCHANGE

LISTING

  • Dow Jones Sustainability 
  • CDP
  • CASS-CSR
  • #80 World’s Best Employers 2020
  • #81 World’s Most Valuable Brands 2020
  • #189 Global 2000 2020
  • #73 Top Regarded Companies 2019

EMPLOYEES

70,032

CHIEF SUSTAINABILITY OFFICER

Zafar Brooks

AWARDS

  • IIHS 
  • Euro NCAP
  • Kona EV won 2019 North American Utility Vehicle of the Year
  • 202 WardsAuto 10 Best Engine & propulsion systems

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard

Hyundai

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Hyundai is a motor group company based in Seoul, South Korea. Hyundai operates the world’s largest integrated automobile manufacturing facility in Ulsan, South Korea which has an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide.

Hyundai is part of the conglomerate with several other subsidiaries such as Hyundai Heavy Industries Group, Ioniq, Genesis Motor, Kia Motors, Hyundai Development Company group, Hyundai Marine and Fire Insurance. Ranging from automobiles to steal to construction the company is worth 9.5 billion dollars. Hyundai is one of the world’s largest vehicle manufacturers. 

It operates through the following business areas: Vehicle, Financial and Others.

  • The Vehicle division offers motor vehicles.
  • The Financial division provides financing, leasing and credit cards.
  • The Other division includes manufacture of railways.

Company Sustainability Activity

“In 2019, Hyundai sought to improve the conditions of life for all humankind, in the areas of establishing a smart mobility ecosystem, pursuing eco-friendly value throughout the entire value chain, creating a sustainable supply chain, building a healthy corporate culture, and contributing to the development of local communities. In addition, based on our unique strategy for creating shared value (CSV), we generated distinctive values and continued our innovation drive toward a sustainable future.”

Highlights

  • Hyundai improved the waste synthetic resin recycling rate from 5.6% to 20%, resulting in an overall recycling ratio of 93%
  • Hyundai replaced the sodium nitrite used at their transmission plant

Targets

  • Reduce GHG emissions by 26% compared to 2016 (by 2030)
  • Produce 500,000 units of FCEVs per year (by 2030)
  • Fully commercialize Level 4 autonomous vehicles (commercialization of a robo-taxi service) (by 2030)
  • Operate over 26 eco-friendly vehicle models (by 2025)
  • Sell over 1.03 million units of eco-friendly vehicles (by 2025)
  • Develop and apply a new architecture for EVs (by 2024)
  • Mass-produce Level 4 autonomous vehicles capable of urban driving for
    fleet operations (pilot robo-taxi service) (by 2023)
  • 100% ISO 45001 (by 2022)
  • Reduce the amount of dust generation by 50 tons in order to comply with the enforcement of the Air Management Zone Act (by 2022)
  • Mass-produce Level 3 autonomous vehicles capable for highway driving (by 2021)
  • Win IIHS awards (2020), and receive the high rating at the Euro NCAP (Every year)
  • Reduce wastewater discharge by 300 tons per day and pollutants by 2 tons per year at the Ulsan Plant (by 2020)
  • Increase the number of models to which the 3rd generation platform and ADAS are applied
  • Install hydrogen and photovoltaic power generator in building the Global Business Center (GBC)
  • Adopt a hydrogen fuel cell power plant (Tucson fuel cell)
  • Adopt a hydrogen fuel cell power generator at headquarters
  • Continue to improve resource circulation capabilities for end-of-life vehicles in line with the adoption of extended producer responsibility (EPR) program
  • Establish an uninterruptible power system by linking an internal power plant with combined heat and power generation
  • Replace production lines with eco-friendly products in line with the increase in producing eco-friendly vehicles

Progress

  • Launched new models: 3 HEVs and 1 EV (including Kona HEV, compact SUV, and Porter EV, Hyundai’s 1st compact commercial model)
  • Sales of eco-friendly vehicles in 2019: 183,000 vehicles
  • Sales of FCEVs in 2019: 5,000 vehicles (4,194 in Korea, 711 overseas, based on shipment
  • Applied the Highway Driving Assist II (HDA II) system to the new Genesis SUV (GV80)
  •  Established smart mobility solution companies (Mocean in Korea, Moceanlab in the U.S.) 
  • Developed the AI-based SCC-ML1) technology for the first time in the world
  • Completed the development of the 3rd generation platform, and applied it to the 8th generation Sonata
  • Applied state-of-the-art infotainment system, equipped with augmented reality (AR) navigation and ADAS sensors, to Genesis
  • Tied for the most IIHS2) awards
  • In 2019, Hyundai improved the waste synthetic resin recycling rate from 5.6% to 20%, resulting in an overall recycling ratio of 93%
  • In 2019, Hyundai replaced the sodium nitrite used at their transmission plant, as well as methanol, boron oxide, and sulfuric acid used at their material plant with unregulated materials, thereby reducing their year-on- year volume of using hazardous chemical materials by 45 tons.
  • Actively continue replacing hazardous chemical materials with unregulated materials in 2020.

Certificates

  • ISO 14001
  • OHSAS 18001
  • ISO 14065

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 3: Good Health and Well-Being

  • Provide research funds to fight childhood cancer in the U.S, (Hope on Wheels)
  • Donate toys to children with employee participation (Toys for Tots Campaign)
  • Provide school supplies to students and volunteer to clean up schools in Montgomery
  • Organize a fund-raising campaign by employees (2019 United Way Campaign) 
  • Run a food assistance program for the elderly in Montgomery (Meals on Wheels)
  • Sponsor the Montgomery Area Food Bank through food and financial support

SDG 7: Affordable and Clean Energy

  • Pursuing Eco-friendly Value throughout the Entire Value Chain by becoming a leader in creating environmental value by developing eco-friendly vehicles and reducing the level of greenhouse gases in production processes

SDG 8: Decent Work and Economic Growth

  • Creating a work environment which strikes the right balance between work and personal lives at all business sites, and manage related ESG risks

SDG 9: Industry, Innovation and Infrastructure

  • Smart Mobility-based Customer Experience Innovation: Improve user convenience and accessibility through car-to-life technologies

SDG 11: Sustainable Cities and Communities

  • Contributing to the Development of Local Communities: Hyundai has taken on full social responsibilities as a mobility solution providers by actively contributing to local communities

SDG 12: Responsible Consumption and Production

  • Creating a Sustainable Supply Chain: Establish a sustainable business ecosystem by managing ESG risks throughout the supply chain

Secondary SDGs: 4, 5, 10, 13, 17 

Evaluation

Hyundai has made progress to incorporate into the entire company. Despite their efforts, they have few certificates and labels. The company does haves some listings and awards.

Hyundai seems to comply with the UN Sustainable Development Goals. They state clear targets, however, the automotive industry has a negative impact on the environment. For these reasons, Hyundai has been rated a C.

Analyst Outlook: Neutral

Hyundai has a clear SDG analysis and progress report on their sustainability page. Hyundai is focused on making their vehicles more environmentally friendly while advancing new technologies within the vehicles.

Over the next ten year Hyundai can improve their sustainability status by following through on their progress and targets.

 

Key Points

  •  Hyundai has extensive plans in place to make their company more sustainable
  •  Though they sell automobiles which will pollute the environment, they are focused on creating electric and more energy efficient vehicles
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