Hyundai Motor Enhances Future Survival Strategy with ESG Report

Hyundai Motor Company is proactively addressing global demands for environmental responsibility and transparent management with its newly released 2026 Sustainability Report. This comprehensive document outlines the company's crisis management capabilities and future business strategies, building on its annual sustainability reporting since 2003.

The report underscores significant environmental achievements, notably the completion of a 100% transition to renewable energy across all operations in Europe, North America, and India. A key milestone includes a large-scale solar power purchase agreement for the Hyundai Motor Group Metaplant America, securing 147MW of clean energy. Hyundai is also strengthening its environmental stewardship by enhancing its battery resource circulation loop and adopting guidelines for financial disclosure of natural assets, thereby expanding its management scope to biodiversity conservation.

In the social value sector, Hyundai emphasizes product safety and responsible management of its workforce. The company's vehicles have earned top safety ratings in 16 models from the U.S. Highway Loss Data Institute's stringent crash tests, demonstrating technical excellence. Hyundai is also investing significantly in safety infrastructure and has developed a roadmap for industrial safety and health. A notable initiative is its fair transition system, designed to support the stable reassignment of existing production personnel facing job changes due to technological advancements, ensuring a smoother adaptation to evolving labor environments.

Corporate governance reforms are also detailed, including the introduction of a senior independent outside director system to ensure the independent role of outside directors. Board diversity has been increased with the appointment of four female directors and three foreign nationals, broadening the decision-making body's perspective. To enhance corporate value, Hyundai has committed to maintaining a shareholder return rate of at least 35% from next year through 2027. Furthermore, the company is establishing a phased AI ethics control system to prevent ethical risks associated with artificial intelligence, creating a defense against digital threats.

A key innovation in this year's report is improved accessibility. Alongside the full report, Hyundai has released a concise summary for the first time. This summary distills key achievements, climate change response scenarios, and supply chain management status into easily understandable charts and explanations, making complex information more accessible to various stakeholders. Hyundai stated that this effort aims to demonstrate its risk control capabilities in response to governments' increasing mandates for non-financial information disclosure, fostering greater stakeholder understanding of the company's future direction.

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In response to the trend of governments in various countries mandating non-financial information disclosure, we wanted to demonstrate our practical risk control capabilities without reservation. Through the distribution of the summary, various stakeholders will be able to more easily empathize with the company's future direction.