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be used for mass-production. We have applied advanced high strength steel to 53% of the IONIQ car body, and use aluminum in major parts such as the hood, tailgate, and chassis; this has resulted in a reduction in the weight of the car and outstanding fuel efficiency of 22.4 km per liter. Hyundai will continue to use new materials in its vehicles, and reduce their weight in order to enhance eco- friendliness. Development of solar charging system Hyundai unveiled its new solar charging technology in October 2018, installing solar panels on vehicle roofs to charge batteries. This system offers auxiliary power to charge the batteries of eco-friendly vehicles or boost the power of ICEVs, rather than acting as the main power source. We are conducting research on three types of system ‒ a first-generation silicon-type solar roof, a second-generation semi-transparent solar roof, and a third-generation lightweight car body solar-lid system. We plan to use the first-generation solar roof system in the new Sonata Hybrid to be launched in July 2019, and we are also striving to become the first automotive company in the world to commercialize solar systems for ICEVs. Energy from the solar system will improve driver convenience and have a positive impact on the environment by improving fuel efficiency and reducing GHG emissions. In addition, Hyundai will earn carbon credits and respond effectively to global environmental regulations. We will continue to innovate so that automobiles no longer simply consume energy, but can function as a moving power plant, actively producing energy. Hyundai’s direction to improve fuel efficiency 061 First-generation (left) and second-generation (right) roof panels Performance evaluation of the second-generation roof panel Eco-friendliness of Products OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE
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panel Eco-friendliness of Products OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES • Fuel efficiency enhancement by redesigning engine structure - Optimizing the combustion chamber and piston shape - Change of intake port shape - Reducing mechanical friction on engine moving system • Improving tire rolling resistance and aerodynamics; and making tires lightweight - Developing electrification technologies, such as 48V mild hybridinjection technology • Applying eco technologies to reduce power load - LED light bulbs, high efficiency alternator, solar panel, etc. Improving fuel efficiency and applying new technologies Developing next-generation powertrains (Smartstream) Improving fuel efficiency on real roads (Off-cycle technology) • Implement high fuel efficiency by applying key technology - Integrated Thermal Management System (ITMS) - Continuously Variable Valve Duration (CVVD) - Dual Port Fuel Injection (DPFI) <61 END>
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<START 62> Reducing the use of hazardous substances Regulations relating to the use of hazardous substances continue to get stricter. Hyundai therefore operates a detailed regulation response system that covers the entire process, from the monitoring of regulations to their application in vehicle development and mass-production. Moreover, we ensure that our suppliers are able to respond effectively to all relevant regulations. In addition, Hyundai has adopted the International Material Data System (IMDS), operated jointly by global auto manufacturers since 2004, to systematically manage information on the chemicals contained in our products. Information collected from the IMDS is linked to our own Material Analysis Management System (MAMS) to ensure that there is no inflow of hazardous substances into our products. In order to offer the safest possible products to customers, we are constantly looking to use alternative substances instead of substances that may be harmful to the human body, irrespective of whether there are regulations requiring us to do so. Application of eco-friendly materials Most of the countless non-metal parts used in automobiles are based on petrochemicals. Hyundai recognizes the environmental impact of the automotive materials, and is aiming to expand its use of bio-materials that originate from micro-organisms and plants. Most interior materials in the Nexo, our next-generation FCEV launched in 2018, are UL-certified bio materials, including plant-based artificial leather, bioplastics and fabrics, and plant-based paints. We will continue to expand the use of eco-friendly materials, so that we can offer our customers better air quality inside their vehicles, greater durability, improved safety, a better driving environment, and more value. Recycling waste resources Hyundai is building a resource-circulation recycling system to enable us to reuse many of the parts in our automobiles. Our eco-friendly end-of-life
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ter durability, improved safety, a better driving environment, and more value. Recycling waste resources Hyundai is building a resource-circulation recycling system to enable us to reuse many of the parts in our automobiles. Our eco-friendly end-of-life vehicle processing network is creating a positive resource cycle, collecting recyclable parts from end-of-life vehicles and then putting them through an eco-friendly recycling process so that they can be used in the production of new vehicles. This system is currently limited to iron and non-ferrous metals, but we plan to increase its scope to include non-recyclable items, including plastics, rubber, glass, and seats, so that we can reuse as many materials from end-of-life vehicles as possible. In plastics, for example, we are mixing pellets produced through recycling with new materials and then applying the mixture to functional parts such as wheel guards, undercovers, and shrouds. For seats, we have developed a technology which makes them into materials for parts such as sound absorption and luggage partitions. We will continue to expand the scope of our parts recycling technologies in order to fulfill our social responsibility to build an eco-friendly and resource-efficient economy. Resource-circulation recycling system End-of-life Production Use Recycle Waste parts and materials Recycled materials Recycled parts 062 Eco-friendly bio-materials used in the Nexo OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES Auto parts made from recycled materials Waste plastics Waste seat Luggage partitions Wheel guards Sound absorption Shrouds Undercovers One-stop service for eco-friendly end-of-life vehicle processing Vehicle dismantling and recycling 05 End-of-life inquiry 01 Vehicle registration cancellation 04 Review vehicle registration Notification on process to recycle
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rption Shrouds Undercovers One-stop service for eco-friendly end-of-life vehicle processing Vehicle dismantling and recycling 05 End-of-life inquiry 01 Vehicle registration cancellation 04 Review vehicle registration Notification on process to recycle vehicle and valuation of vehicle 02 Submit vehicle Reimbursement and confirmation receiptc 03 <62 END>
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<START 63> The photovoltaic power generation system will be set up on a site of around 270,000m 2 within the Ulsan Plant. The site will continue to serve its original purpose while the photovoltaic panels are being installed on the roof, to ensure that the construction does not cause any environmental damage. The first phase, involving installation in the proving ground, is expected to be completed in September 2019. Once second phase construction is finished in 2020, the construction of a 27 MW system will be completed, and we expect it to produce 35 million kWh of electricity annually, an equivalent of electricity used by 10,000 households in a year. This photovoltaic power project at our Ulsan Plant is the first in Korea to involve joint development between a public and a private company, and, after its completion, we will review whether to implement additional projects in the future. Hyundai will continue to respond actively to the Korean government’s policies on renewable energy, reduce its GHG emissions, and develop eco-friendly production plants. Developing hydrogen fuel cells In December 2018, Hyundai signed an agreement with Ulsan Metropolitan City to expand the hydrogen infrastructure through the Hydrogen Fuel Cell Demonstration Center at the Ulsan Technopark, a project to envisage the hydrogen society of the future by demonstrating a 500 kW power generation fuel cell, developed by using Hyundai’s outstanding fuel cell technology for FCEVs. Our plan for 2019 is to carry out a pilot project in cooperation with regional energy companies through which we will build a 1 MW fuel cell system that can supply electricity to more than 1,000 households. We are also looking into participating in a pilot project relating to a hydrogen fuel cell for buildings, while also planning to install a hydrogen fuel cell power plant at our production plant, with the goal of building an eco-friendly hydrogen ecosystem and developing a new energy business model. Expanding the hydrogen infrastructure
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cell for buildings, while also planning to install a hydrogen fuel cell power plant at our production plant, with the goal of building an eco-friendly hydrogen ecosystem and developing a new energy business model. Expanding the hydrogen infrastructure Hyundai is planning to expand the hydrogen charging infrastructure by opening charging stations at four locations across Korea in 2019, beginning with the National Assembly building in May, which will be followed by Gangdong-gu in Seoul, Sasang-gu in Busan, and Namdong- gu in Incheon by September. We also opened the first hydrogen charging station on a highway in Korea in April 2019, the first step towards building a hydrogen charging network. Moreover, Hyundai is the second largest shareholder in the Hydrogen energy Network (HyNet), a special purpose company that is working in partnership with the energy industry to expand the hydrogen infrastructure by building 310 hydrogen charging stations by 2022. Hyundai has been a member of the Board of Directors at H2KOREA since August 2016, a hydrogen convergence group that brings together the public and the private sector to advance the hydrogen industry. Hyundai is also a founding member and co-chair of the Hydrogen Council, a group of CEOs from international hydrogen-related companies. Hyundai is strongly supporting international public-private cooperation within the hydrogen industry and is taking the lead in expanding the hydrogen economy. Hyundai will continue to work on resolving environmental issues through the use of hydrogen energy, including by developing technologies that will make FCEVs even more eco-friendly, and by building an infrastructure in support of FCEVs and other hydrogen vehicles. Managing Energy and Reducing GHG Emissions Hyundai is reducing its GHG emissions as part of the extensive efforts being made by the international community to counter climate change. In addition to developing eco-friendly vehicles, we are reducing energy usage at all of
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d Reducing GHG Emissions Hyundai is reducing its GHG emissions as part of the extensive efforts being made by the international community to counter climate change. In addition to developing eco-friendly vehicles, we are reducing energy usage at all of our business sites, especially production plants, including building high- efficiency facilities and making process improvements. In addition, the GHG strategy organization consisting of the energy managers from all of our business sites, is helping us to build sustainable and eco-friendly plants. In 2018, Hyundai built on our existing energy saving measures, including the manufacturing of a photovoltaic power generation system and the use of a co-generation system, by establishing a mid- to long-term strategy to reduce GHG emissions and to use more renewable energy. Establishing the GEMS Hyundai promotes the efficient use of energy through the Global Energy & GHG Management System (GEMS), allowing real-time energy monitoring of all of our business sites both in Korea and overseas. We analyze energy indicators in real time, including energy usage, GHG emissions, and energy costs. We share the technical abilities of energy-efficient sites, and create targeted measures for improvements in energy consumption and GHG emissions for each business site. Hyundai will continue to improve its eco- friendly energy and emissions systems at all of its business sites. Reducing Scope 3 GHG emissions Hyundai controls its Scope 1 emissions ‒ direct emissions from owned or controlled sources ‒ and Scope 2 emissions ‒ indirect emissions from the generation of purchased energy. In addition, we manage our Scope 3 emissions ‒ indirect emissions from our value chain, including employee commuting, the transportation and distribution of products, and the full range of both upstream and downstream emissions. It also covers indirect emissions by companies in which we invest. In 2018, there was a year-on-year
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ue chain, including employee commuting, the transportation and distribution of products, and the full range of both upstream and downstream emissions. It also covers indirect emissions by companies in which we invest. In 2018, there was a year-on-year improvement of 27.6% in our Scope 3 GHG emissions, mainly attributable to increased demand for the IONIQ Electric and Kona EV. We measure, manage and strive to reduce all of our direct and indirect GHG emissions, and we also continue to disclose our environmental efforts to all our stakeholders. Increasing generation of photovoltaic power Hyundai reached an agreement with Ulsan Metropolitan City and Korea Hydro & Nuclear Power in August 2018, to build a large-scale photovoltaic power generation system at our Ulsan Plant. We had built the photovoltaic power generation facility on the roof of our Asan Plant in 2013, and we plan to install a major photovoltaic power generation system on existing sites at our Ulsan Plant, including in the proving ground and the export vehicle yard. 063 H Station, a hydrogen charging station, at the Anseong Service Area Hydrogen Fuel Cell Demonstration Center OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES Responding to Climate Change Photovoltaic power generation facility installed in the proving ground of the Ulsan Plant <63 END>
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<START 64> Hyundai’s Jeonju Plant has reduced its GHG emissions by utilizing construction methods which minimize energy usage in its production facilities, and by replacing older facilities with new, high-efficiency facilities. In 2018, the Jeonju Plant reduced its GHG emissions by 2,445 tons by applying insulating paints to its paint shop oven, standardizing its facility operating hours, installing high-efficiency air compressors, changing 1,500 fluorescent lights to LEDs, and setting up 28 power- saving circuits in its engine processing equipment. In particular, we reduced 508 tons of CO2 emissions from paint shop operations by replacing 25 older motors with high-efficiency motors. Energy Management and Reduction of GHG Emissions at Major Business Sites As the international community is demanding eco-friendliness while governments around the world are enforcing ever-tighter environmental regulations, Hyundai strives to improve its energy efficiency and reduce its GHG emissions. We identify how we can reduce the use of energy at each business site and in each working process, and set out plans on an annual basis to put effective countermeasures into place. Hyundai’s Ulsan Plant became the first automotive plant in Korea to build a co-generation system to replace its diesel emergency generators. The system uses a gas turbine that burns LNG to supply the electric power and steam needed at the plant. The entire power generation process is automated through a Factory Energy Management System (FEMS) and is designed to allow unmanned operations. This co-generation system produces 11 million kWh of electricity annually, and has enabled savings of around KRW 900 million every year during the peak demand periods in winter and summer. We have also installed an external steam program, which uses the heat generated during waste incineration for some of our other work processes, thus reducing our impact on the environment. Ulsan Plant Hyundai’s Asan Plant has reduced its energy usage in a
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ve also installed an external steam program, which uses the heat generated during waste incineration for some of our other work processes, thus reducing our impact on the environment. Ulsan Plant Hyundai’s Asan Plant has reduced its energy usage in a number of ways, including by installing high-efficiency facilities and optimizing its processes. The photovoltaic power generation facility has been in operation since 2013, and produces an annual 13,000 MWh of electricity. We are continuing to expand eco-friendly management at all of our business sites, including identifying more areas in which we can use alternative energy. The major focus of our environmental activities in 2018 was the building of an energy management system at our Asan Plant. This system examines our energy usage and GHG emissions in real time, so that we can eliminate energy wastage during non-production hours. Other activities aimed at reducing energy usage included replacing older motors with high-efficiency motors, and installing inverters and LED lights. These have resulted in an annual reduction in GHG emissions of 3,700 tons, and an annual reduction in the cost of energy of KRW 960 million. Asan Plant The Namyang Technology Research Center produces a certain amount of GHGs during its research activities, including car design, pilot production and performance testing. It therefore uses high-efficiency facilities and operational systems to minimize its GHG emissions. Lighting fixtures in older buildings at the Technology Research Center were replaced with LED lights and an automatic lights-out system has been installed. This has resulted in a 3.32 million kWh annual reduction in the use of energy and an annual reduction of 1,547 tons of GHG emissions. Waste heat from incineration is used for heating, which reduces GHG emissions by 2,377 tons, and 720,000 kWh of electricity was produced using photovoltaic power generation facilities, reducing GHG emissions by 336 tons.
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1,547 tons of GHG emissions. Waste heat from incineration is used for heating, which reduces GHG emissions by 2,377 tons, and 720,000 kWh of electricity was produced using photovoltaic power generation facilities, reducing GHG emissions by 336 tons. The Technology Research Center is also enhancing its energy efficiency by repairing and replacing older facilities and equipment used in its experiments, and by improving operational efficiency. An energy management system is used for the real-time monitoring and control of energy usage, and also for the empirical analysis of our reduction of GHG emissions. Namyang Technology Research Center Jeonju Plant 064 Energy management system at the Asan Plant Photovoltaic power generation facilities at the Namyang Technology Research Center Co-generation facility at the Ulsan Plant OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES Classification Paint shop oven temperature management VOC burning temperature management Hot air circulation temperature management <64 END>
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<START 65> Reducing the Environmental Impact of Business Sites Hyundai is constantly striving to reduce the environmental impact of all of its business activities. In managing environmental pollutants at our business sites, especially production plants, our internal control criteria are stricter than the regulatory requirements of every country in which we operate. We also have established an integrated environmental facility control system. In addition, we make sure that our employees are fully aware of the importance of the environment through corporate-wide campaigns aimed at preventing accidents and monitoring environmental risks. Furthermore, we actively respond to the environmental and social demands of our internal and external stakeholders, thus building an environmental ecosystem at our business sites that will be effective over the long-term. Minimizing air pollutants Hyundai continues to make facility investments and process improvements to reduce the amount of pollutants generated by our automobile production. In 2018, we installed an additional painting regenerative thermal oxidizer (RTO) and invested in improving material dust collectors, resulting in a 4% reduction in emissions intensity of volatile organic compounds, and a 9% reduction in dust emissions intensity. In 2019, we are making an active effort to resolve fine dust problems by making facility investments including the installation of paint shop evaporation equipment. Managing water resources With water posing a social issue worldwide, water resource management at our business sites has become of vital importance in looking after our local communities. Hyundai has established water management policies and goals for reducing water usage at each business site, backed by detailed implementation strategies. Our Ulsan Plant sets strict criteria to prevent leaks of water pollutants and utilizes a remote monitoring system for the automated monitoring of
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s and goals for reducing water usage at each business site, backed by detailed implementation strategies. Our Ulsan Plant sets strict criteria to prevent leaks of water pollutants and utilizes a remote monitoring system for the automated monitoring of potential problems. In addition, a detailed management plan concerning potential sources of pollutants ensures that there is zero oil leakage into streams. In addition to reducing water pollutants, we also strive to reduce the amount of wastewater itself. The Asan Plant uses a zero liquid discharge system in order to reuse all of the wastewater produced at the plant and in local residential areas. We will continue to extend our pollutant management activities. We are also running programs aimed at minimizing environmental damage, including making safety and the environment a vital part of the mindset of all of our employees, and conducting training on how to respond to major leaks. Minimizing waste materials Hyundai has been making facility investments and expanding the number of items that we are able to recycle with the goal of reducing waste while increasing recycling. For example, sludge conditioning and improvements in the dehydrators at our Ulsan Plant have reduced the amount of sludge being generated by some 287 tons. Our plan for 2019 is to reuse sludge as an auxiliary fuel for thermal power plants, and to increase recycling by improving our ability to separate out solid incinerated matter. Strengthening management of hazardous chemical materials Hyundai is committed to preventing harm to people and the environment from leaks of hazardous chemical materials at our business sites. We are therefore replacing highly hazardous materials, and strengthening our facility inspections. In 2018, we replaced the hydrochloric acid used in our paint shops and the sulfuric acid in our material plants, thereby resulting in a reduction of 109 tons in our use of hazardous chemical
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rdous materials, and strengthening our facility inspections. In 2018, we replaced the hydrochloric acid used in our paint shops and the sulfuric acid in our material plants, thereby resulting in a reduction of 109 tons in our use of hazardous chemical materials. We will continue our replacement activities in 2019. We will also offer extensive employee training relating to hazardous materials by using user-created content, so that we can build an even safer system for the management of hazardous chemical materials. RTO facilities at painting shop 42 line of Ulsan Plant Installation of fiber disc filters at the Asan Plant Sludge dehydrators at the Ulsan Plant 065 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES Minimizing Environmental Impacts <65 END>
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<START 66> Roadmap for the Eco-friendly Site Management Hyundai identifies the major activities of each of its business sites and their resulting impact on the environment. We then deploy targeted efforts to reduce the environmental impact. This will further improve the eco-friendliness of all of our business sites over the mid- to long-term. Plans to reduce environmental impacts at each business site Repetitive, short-term (3-5 years) Mid-term (5-10 years) Long-term (10 years and more) • Make efforts to reduce GHG in connection with reducing fine dust ‒ Raise employee awareness, communicate through various channels, etc. • Continually implement and strengthen activities to reduce energy use in daily life ‒ Make continued corporate-wide efforts and strengthen campaigns to reduce energy use ‒ Carry out energy-saving activities through the restart campaign of Go Together • Monitor the GHG emissions of suppliers • Operate a GHG Council consisting of representatives of business sites • Operate wastewater treatment facilities at vehicle processing centers to improve water quality after washing cars • Make the new HQ building (Global Business Center) eco-friendly in terms of construction and operation ‒ Apply eco-friendly factors when building the GBC ‒ Use eco-friendly fuel and install power generation facilities (hydrogen/photovoltaic) • Adopt an energy storage system (ESS) mainly at business sites on Jeju Island, the mecca of eco-friendly vehicles • Expand the scope of environmental management to include dealerships and service centers in order to contribute to building an eco-friendly society ‒ Apply eco-friendly air-conditioning and heating, and adopt high-efficiency facilities • Expand the installation of new and renewable power generation (hydrogen/ photovoltaic) at company buildings HQ • Strengthen management of energy loss factors ‒ Operate air-conditioning and heating, and strengthen related campaigns • Adopt external waste heat steam, and reduce fuel use
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renewable power generation (hydrogen/ photovoltaic) at company buildings HQ • Strengthen management of energy loss factors ‒ Operate air-conditioning and heating, and strengthen related campaigns • Adopt external waste heat steam, and reduce fuel use • Make efforts to reduce GHG in connection with fine dust reduction ‒ Raise employee awareness, communicate through various channels, etc. • Build eco-friendly research facilities ‒ Expand the installation of photovoltaic power generation on building roofs ‒ Build a smart grid • Expand eco-friendly research facilities in connection with R&D for eco-friendly vehicles ‒ Review the adopting of ESS that uses waste batteries from EVs ‒ Review the adopting of hydrogen fuel cell power generation (small scale) • Expand use of eco-friendly energy at R&D facilities ‒ Expand the adoption of hydrogen fuel cell power generation ‒ Review the adopting of photovoltaic power generation in connection R&D for eco-friendly vehicles ESS Technical Center • Begin the shift into eco-friendly energy sources ‒ Install large-scale photovoltaic power generation in the Ulsan Plant by 2020 ‒ Build a co-generation plant that produces electricity and heat (steam) together • Increase energy reuse in processes ‒ Apply plant steam through waste heat from Hyundai Heavy Industries’ incinerators ‒ Operate pressure differential power generation using steam • Minimize energy loss that occurs while operating production facilities ‒ Replace old pipes, lines and facilities, and apply high-efficiency equipment ‒ Conduct campaigns and communication continuously to raise employee awareness ‒ Carry out energy-saving activities through the restart campaign of Go Together • Carry out diverse activities and obtain certifications as an outstanding company in energy saving • Apply and expand new energy reduction/management technologies of the future ‒ Adopt hydrogen fuel cell power generation to the company’s processes ‒ Expand the application of ESS
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nd obtain certifications as an outstanding company in energy saving • Apply and expand new energy reduction/management technologies of the future ‒ Adopt hydrogen fuel cell power generation to the company’s processes ‒ Expand the application of ESS ‒ Adopt energy management techniques using IoT • Conduct eco-friendly activities in connection with resource recycling ‒ Adopt power generation using waste generated in the plants ‒ Secure waste heat suppliers, including nearby industrial complex, and adopt power generation using waste heat • Build eco-friendly smart factories ‒ Expand self-assessment and IoT-based management of energy ‒ Apply optimal energy operation efficiency techniques, including outage- free production plants in connection with co-generation power plants • Move forward with “producing eco-friendly vehicles at eco-friendly plants” ‒ Replace production lines to be eco-friendly ‒ Increase new & renewable energy power generation ‒ Build power plants by recycling waste EV batteries • Strengthen roles as an energy consumer through diversification of energy adoption sources ‒ Review the operating of internal power plants through direct gas import ‒ Review the contributing to the RE100 society through direct new and renewable energy import Plant 066 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment • Eco-friendliness of Products • Responding to Climate Change • Minimizing Environmental Impacts 4.6 Collaboration 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <66 END>
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<START 67> Carbon Management Honors Club’s Award by CDP The Carbon Disclosure Project (CDP) is a global project founded in 2003. It evaluates the activities of companies in some 90 countries around the world in reducing GHG emissions. Approximately 6,800 companies were assessed by the CDP in 2018, and 139 of them were given the top ‘Leadership A’ grade. Hyundai not only earned a Leadership A grade in 2018 but received the ‘Carbon Management Honors Club’ award. Winner in three categories at the British ‘Next Green Car’ Awards The Next Green Car Awards are given to the best eco-friendly vehicles launched in the UK. These awards examine a wide range of vehicles and manufacturers for car of the year, and make their selections based on a number of criteria, including environmental performance and cost. Hyundai’s Kona EV received the 2018 Next Green Car Awards in two categories ‒ Car of the Year and Family Car of the Year. Hyundai also won the Manufacturer of the Year award, in recognition of our outstanding expertise in the development of EVs. It is the first time for a manufacturer, rather than a car, to receive the award. Tenth win in the WardsAuto 10 Best Engines Award Hyundai has been named among the 10 Best Engines Winners by WardsAuto, a total of ten times over the last 11 years, beginning with the Tau engine in 2009. The Tau engine was awarded for three consecutive years from 2009 through to 2011, and that success was followed by our winning of the pure internal combustion engine category on six occasions, for the Kappa 1.4 Turbo Engine and the Lambda 3.3 Turbo Engine. Hyundai has also been named for four times in the eco-friendly model category, for the Sonata Plug-in Hybrid, the Kona Electric, and the Nexo FCEV, thereby meeting fuel efficiency and environmental standards as well as customer requirement for vehicle performance. 067 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Major Performance & Plan 2018 Performance 2019 Plan
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efficiency and environmental standards as well as customer requirement for vehicle performance. 067 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Major Performance & Plan 2018 Performance 2019 Plan Mid-to Long-term Plan Eco- friendliness of Products • Discovered a new company for the resource- circulation recycling system, reducing transportation logistics costs and promoting stable operations • Conducted an evaluation for selecting an outstanding company within the network to level up overall standards • Discover more companies within the resource-circulation recycling network to improve resource-circulation recycling rate • Continue to improve resource-circulation capabilities for end-of-life vehicles in line with the adoption of extended producer responsibility (EPR) programs Responding to Climate Change • Achieved the goal of emission allowances allocated by the government according to emissions trading scheme (ETS) • Operate a corporate-wide GHG response committee, and strengthen activities to reduce GHG emissions • Reduce GHG emissions in a phased manner, and expand the CDM project at overseas business sites • Reduce GHG emissions by 26% compared to the figure in 2017 by 2030 • Continued to operate existing photovoltaic power generation facilities built in our Ulsan Plant and Asan Plant • Complete the phase I of the construction of a photovoltaic power generation complex in the proving ground of our Ulsan Plant • Build a 27 MW-level photovoltaic power generation complex in the Ulsan Plant by 2021 Hyundai’s Environmental Responsibility Hyundai not only responds to global environmental regulations with eco-friendly technologies, but also is fully aware of the automotive industry’s impact on eco-systems on the Earth. That is why we always strive to fulfill our social responsibilities by improving the gas mileage of our products, continuing to reduce carbon footprints, proactively
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t also is fully aware of the automotive industry’s impact on eco-systems on the Earth. That is why we always strive to fulfill our social responsibilities by improving the gas mileage of our products, continuing to reduce carbon footprints, proactively recycling by-products, and conducting other eco-friendly actions. We will continue to put our best efforts to improve the eco-friendliness of automobiles, one of the main issues that the industry has to resolve in the medium- to long run, and to further reduce the environmental impact associated with our business operations. <67 END>
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<START 68> Shared challenges, shared growth COLLABORATION 068 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Hyundai believes that its own competitiveness relies on the competitiveness of its suppliers. Given the massive changes taking place in the automotive industry, a better future can only come about through strong partnerships with our suppliers. Hyundai is therefore creating a virtuous cycle of joint growth within the automotive industry by providing suppliers with comprehensive support. <68 END>
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<START 69> We grow in partnership with our suppliers, driven by the same goal – the highest levels of quality. Hyundai knows that growing in partnership with its suppliers leads to better quality for its customers. We are therefore committed to transparent and fair trade with our suppliers. We have in place rigorous fair trade compliance programs and risk assessments to increase the transparency of our supply process, which are building the foundations for joint growth. Hyundai’s suppliers grow alongside us, and we offer a wide range of programs enabling them to develop a global level of competitiveness and to achieve continued growth. In partnership with our suppliers, we build an ecosystem for joint growth that ensures both Hyundai and our suppliers to offer customers the highest standards in quality. Soo Young Um General Manager, Hyundai & Kia Automotive Suppliers Association Driven by a shared vision The Hyundai & Kia Automotive Suppliers Association was established to build strong and cooperative relationships between Hyundai and its suppliers, and to promote the exchange of information between them. With the automotive industry now seeing extensive technological convergence and substantial changes, it is vital to innovate, even for all of 30,000 parts of Hyundai products. However, rising global protectionism, increases in minimum wage, reduced working hours, and other changes in the Korean labor market are having a substantial impact, not only on small and medium-size suppliers but also on the industry as a whole. The changes are making supply chain competitiveness more important than ever. Against this backdrop, Hyundai is expanding the scope of its joint growth to include tier 2 and tier 3 suppliers, and also increasing the amount of support it gives to its suppliers, so that we can maintain a healthy ecosystem across the entire automotive industry. Hyundai established the Foundation of Korea Automotive Parts Industry
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tier 2 and tier 3 suppliers, and also increasing the amount of support it gives to its suppliers, so that we can maintain a healthy ecosystem across the entire automotive industry. Hyundai established the Foundation of Korea Automotive Parts Industry Promotion to improve the qualitative and technological competitiveness of parts suppliers over the mid- to long-term. Hyundai is also helping suppliers by providing direct financial support, such as compensation for wage increases and low interest rate loans for tier 2 and tier 3 suppliers experiencing financial difficulties due to increases in the minimum wage. The Supplier Association will further widen the channels of communi- cation between Hyundai and its suppliers. We hope to create mutual understanding based on consideration and respect for others, and we are looking for ways to move forward in partnership, especially at a time of substantial change in our industry. 069 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Stakeholder Interview <69 END>
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<START 70> Compliance Program Establishing Fair Trade Order Hyundai operates a Compliance Program (CP) to promote joint development based on mutual trust and cooperation with all of its stakeholders. We first set up the CP in 2002 to ensure that we comply with fair trade laws. Overall management of the CP is the responsibility of the independent Compliance Officer, whose authorization and responsibility are delegated from the CEO. He is also supported by various organizations within Hyundai. The results of the CP are reported to the Board of Directors. We recognize that fair trade and competition are essential for a company to grow. Hyundai continues to implement fair trade and comply with all regulations in order to build strong relationships with all of our stakeholders, including staff, suppliers, governments, and local communities. Implementing Compliance Program Fair and transparent management at Hyundai derives from our CEO’s commitment to fair trade, as set out in the declarations made in the first and second half of every year. This strong commitment to fair trade is communicated to all of our staff, and compliance guidelines are implemented throughout our business. In addition, Hyundai is establishing a fair trade mindset by providing extensive, company-wide training on fair trade, and by publishing regular newsletters on this issue. Results from the CP and next year’s CP plans are reported to the BOD every year, to ensure that compliance with fair trade is instituted at every business site. CP implementation process CEO’s commitment to compliance Fair and transparent management at Hyundai begins with CEO’s strong commitment to fair trade. In the first and second half of every year, our CEO publicly announces his pledge to practice fair trade compliance. The strong commitment to fair trade of the top management is communicated to all of our staff, and compliance guidelines are implemented throughout our business accordingly. Providing CP education
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nnounces his pledge to practice fair trade compliance. The strong commitment to fair trade of the top management is communicated to all of our staff, and compliance guidelines are implemented throughout our business accordingly. Providing CP education Hyundai provides training on fair trade to new executives and employees when they join the company, to ensure that they are fully aware of the importance of the Fair Trade Act. In addition, staff whose work is closely related to fair trade receive additional compliance training every year. We also publish monthly newsletters on fair trade, so that our employees are properly kept abreast on fair trade, and a fair trade mindset is established throughout the company. Boosting employees’ awareness • Provide employees with education on Fair Trade Act, including field training and online training • Distribute newsletters on fair trade Planning • CEO announces his commitment to practice fair trade compliance (January/July) • Operate the CP Councilc Report of results • Report CP results and plans to the BOD 070 CP education OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <70 END>
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<START 71> Supporting the Growth of Suppliers Hyundai’s suppliers consist of tier 1 suppliers, who supply parts directly to us, tier 2 suppliers, who supply to the tier 1 suppliers, and general suppliers, who supply general products. Our Joint Growth Team spearheads the implementation of policies that are put in place to achieve win-win cooperation with our suppliers. Hyundai believes that improving our suppliers’ capabilities improves the competitiveness of the Korean automotive parts industry. We are therefore supporting our suppliers in terms of production technologies and R&D, over the long term. We will continue to provide positive support to suppliers to improve their businesses, so that we can enhance our own quality and the competitiveness of the automobile industry in Korea. Effects of joint growth through long-term cooperation Average trade period Major performance of suppliers (2018 vs. 2001) * Target of analysis: Tier 1 part suppliers (excluding Hyundai affiliates and non-specialist firms on which the company depends under 10%) No. of suppliers by trade period (Unit: Company) 1. Under 10 years 6 (2%) 2. 10-20 years 40 (14%) 3. 20-30 years 79 (27%) 4. 30-40 years 95 (33%) 5. More than 40 years 68 (24%) Suppliers with trade period of more than 10 years: 98% 1 2 3 4 5 Average life span of domestic small and medium-sized manufacturers: Average trade period with Hyundai Motor Company and/or Kia Motors: 32 years Difference: 19 years + 071 Financial improvement Increase in sales Increase in sales of suppliers (sales of more than KRW 100 billion) 3.8 times 2.4 times Joint entry into overseas markets Around 800 companies Corporate size growth Corporate size growth of large companies and medium-sized firms Expansion of joint entry into overseas markets Total market capitalization of listed suppliers 3.4 times 9.3 times Supporting Suppliers’ Growth 12.6 years OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth
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try into overseas markets Total market capitalization of listed suppliers 3.4 times 9.3 times Supporting Suppliers’ Growth 12.6 years OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <71 END>
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<START 72> Win-win Growth Strategy for Suppliers Hyundai’s strategy for joint growth with its suppliers is to cultivate their global competitiveness, reinforce the basis for sustainable growth, and establish a culture of joint growth. In cultivating global competitiveness of our suppliers, we plan to foster quality competitiveness, develop R&D capability, and enhance productivity. To reinforce the basis for sustainable growth, Hyundai is helping suppliers in strengthening foundation for sustainable management, building infrastructure for growth, and expanding global sales channels. In order to establish a culture of joint growth, Hyundai will strengthen the collaborative network between suppliers and the company, expand its support for tier 2 and tier 3 suppliers, and create a culture of joint growth. These efforts will build a virtuous cycle of win-win growth for Hyundai and its suppliers based on a strong partnership. Joint growth strategy and programs Cultivating Global Competitiveness Reinforcing the Basis for Sustainable Growth Establishing a Culture of Joint Growth Enhancing productivity • Industrial innovation campaign • Building smart plants • Resident technology guidance • Resident management consulting Expanding global sales channels • Joint entry into overseas markets • Support for suppliers’ export expansion • Support for export marketing of tier 2 and 3 suppliers Creating a culture of joint growth • Joint growth agreements • Transparent Purchase Practice Center • Support for ethical management at suppliers • Awarding to best practice joint growth case • Socially responsible management • Welfare programs for suppliers Developing R&D capability • R&D Support Group for Suppliers • Guest engineers • Exhibitions and seminars for new technologies • R&D Supplier Tech Day • Benchmarking advanced technology • R&D Motor Show • Protecting patents and technologies Building infrastructure for growth • Consortium to develop human resources • Seminars for future CEOs
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ions and seminars for new technologies • R&D Supplier Tech Day • Benchmarking advanced technology • R&D Motor Show • Protecting patents and technologies Building infrastructure for growth • Consortium to develop human resources • Seminars for future CEOs • Helping suppliers recruit outstanding talents • Providing education to suppliers’ employees Expanding supports for tier 2 and 3 suppliers • Fostering product quality technologies of tier 2 and 3 suppliers • Providing funds to tier 2 and 3 suppliers • Operating a joint growth system for tier 1 and 2 suppliers • Operating a win-win payment system Fostering quality competitiveness • Foundation of Korea Automotive Parts Industry Promotion • 5-star system • Operation of a quality/technology school • Education on quality by work type • Improvements toward confidence in durability Strengthening foundation for sustainable management • Cash payment for product delivery prices • Adjusting the price of raw materials • Financial support programs • Making early payment for product delivery prices on holidays • Joint purchase Strengthening the collaborative network • Operating a collaborative council by tier 1 suppliers • Operating a Win-win Portal • Sharing information on raw materials price 072 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <72 END>
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<START 73> Fostering quality competitiveness Foundation of Korea Automotive Parts Industry Promotion In partnership with Kia Motors and Hyundai Mobis, Hyundai has established the Foundation of Korea Automotive Parts Industry Promotion in 2002. Hyundai invests around KRW 6 billion every year to support making improvements in quality, technology, and management at its suppliers. Our Quality and Technology Volunteer Group and Supplier Support Group work with our suppliers to make improvements in quality and technology. 5-star system (product quality, technology and delivery) We evaluate suppliers’ quality competitiveness, technological development capability, and delivery competitiveness using a quantitative method, and provide incentives to outstanding suppliers accordingly, as a measure to help suppliers enhance their competitiveness in quality, technology, and delivery. Quality and technology school Hyundai established a quality and technology school to train experts in quality, thus helping to improve our suppliers’ quality management systems. We also offer direct, targeted education to our suppliers in order to maintain the quality and consistency of our mass-produced parts. In addition, we have overhauled the processes for resolving important issues experienced in the field by our suppliers, and we also update them on improvements in durability developed at our technical centers. Developing R&D capacity R&D Support Group for Suppliers Hyundai became the first Korean automobile company to establish an R&D Support Group for Suppliers. The R&D Support Group shares technology between Hyundai and its suppliers, and pursues improvements in quality. This helps suppliers build their R&D capacity, enabling them to produce high-quality products through independent improvements in technology. Some 270 tier 1 suppliers are currently part of the R&D Support Group, through which Hyundai and its suppliers are growing together. Guest engineers
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apacity, enabling them to produce high-quality products through independent improvements in technology. Some 270 tier 1 suppliers are currently part of the R&D Support Group, through which Hyundai and its suppliers are growing together. Guest engineers Engineers from our suppliers are invited to work at Hyundai’s technical center for a certain period through the guest engineer program. They take part in designing parts for new cars, and thus learn Hyundai’s technologies. Upon completion of the program, guest engineers return to their employers and perform crucial roles in improving the supplier’s technological prowess. Sharing patented technology Sharing technology with our suppliers is vital in improving and commercializing product technologies. Hyundai therefore shares its patented technologies with suppliers free of charge, and executes technology transfers when necessary. We share a list of available patents with suppliers every month; suppliers then apply for a patent transfer, and Hyundai in turn shares the patented technologies after reviewing the applications. Enhancing productivity Industrial innovation campaign A group comprised of large companies, tier 1 suppliers, and experts carries out an industrial innovation campaign by overhauling technologies, working environment, and production process, in order to manage the quality of mass-produced parts. Building smart plants Hyundai uses information and communications technology to operate a range of tracking systems in our manufacturing processes. This minimizes defects in parts and products, and enables us to trace and identify problems, and, if necessary, to temporarily stop the entire car production where the defective parts are found. Hyundai has supported some 450 companies since 2016, and will increase this number to 800 starting in 2019, so that our tier 2 and tier 3 suppliers enhance their competitiveness by building smart plants. Hyundai will provide consulting to help our suppliers apply for smart
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some 450 companies since 2016, and will increase this number to 800 starting in 2019, so that our tier 2 and tier 3 suppliers enhance their competitiveness by building smart plants. Hyundai will provide consulting to help our suppliers apply for smart factory and also make facility investments, which will enable them to digitalize their data processing, reduce lead times, failure rates and disposal costs, improve rates of delivery, and increase sales revenues, thereby improving overall business efficacy. Number of suppliers benefitted from the program to build smart plants Cultivating Global Competitiveness Quality at Hyundai depends on the quality of parts used in our finished cars, which means that quality and technical excellence of the parts which come from our suppliers are directly linked to customer trust. We are therefore supporting our suppliers’ efforts to improve quality, make technological developments, and enhance productivity, in order to ensure that we can minimize defects within our finished products. Plan to expand more than 1.8 times for tier 2 and tier 3 suppliers 3 years since 2016 3 years from 2019 450 companies 800 companies Quality and technology school Trainings customized to suppliers • Around 5,500 persons completed the program to foster quality/ technology experts • 24 customized training courses for different business types of suppliers Improving product quality competitiveness of suppliers 073 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <73 END>
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<START 74> Early payment for products on holidays When more funds are required ahead of national holidays, such as Lunar New Year and Chuseok, we assist suppliers by paying for products earlier. This program has been in place for tier 1 suppliers, but we encourage tier 1 suppliers to subsequently support tier 2 and tier 3 suppliers, and the results of those checks are used to evaluate tier 1 suppliers. Hyundai will expand this program to include direct support of tier 2 and tier 3 suppliers. Amount of early payment for products on holidays (Unit: KRW billion) Building infrastructure for growth Consortium to develop human resources Since 2004, Hyundai has been part of a consortium to develop human resources in partnership with the Ministry of Employment and Labor (MOEL) and suppliers. We provide personnel, facilities and financial support for the education of suppliers, and we offer professional technical training and cyber training courses. Strengthening foundation for sustainable management Cash payment for product delivery prices Since May 2006, Hyundai has paid its small and medium-sized suppliers in cash for the entire price of their supply of subcontracted parts and general materials. For parts for domestic use, we make weekly cash payments to small and medium-sized suppliers with sales of under KRW 500 billion. For large companies and medium-sized suppliers with sales of more than KRW 500 billion, we make weekly payments using electronic bills. For export parts, we make monthly cash payments. Adjusting the price of raw materials Prices for raw materials can change frequently and substantially, depending on a number of factors, including global economic conditions. Price increases can potentially lead to suppliers not being able to supply enough parts. In order to prevent this from occurring, Hyundai absorbs the burden of price increases in raw materials for its suppliers. In case of plastics, aluminum, steel sheet, copper, noble metals, and lead whose
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uppliers not being able to supply enough parts. In order to prevent this from occurring, Hyundai absorbs the burden of price increases in raw materials for its suppliers. In case of plastics, aluminum, steel sheet, copper, noble metals, and lead whose price is adjusted according to subcontract, price-volume agreement, and market price change, we pay for them by referring to the factors based on which the adjustment for each material has been made. Expanding global sales channels Joint entry into overseas markets As Hyundai expands its overseas production volume, we help to increase the exports not only of tier 1 suppliers, with whom we have a direct business relationship, but also the exports of tier 2 and tier 3 suppliers. Partnerships that have been developed in Korea are now expanding to overseas, backed up by a range of programs so that Hyundai’s global operations can offer greater opportunities to our suppliers. Support for export marketing of tier 2 and tier 3 suppliers Hyundai actively supports export marketing of its tier 2 and tier 3 suppliers. We support their participation in automotive parts exhibitions held in Korea and overseas, and operate a program that matches suppliers with overseas buyers. We will support some 90 companies every year for the next three years to 2021, a total of around 270 companies. In Korea, we provide financial support to suppliers on fees related to setting up booths at the Korea Automotive Industry Exhibition (KOAA SHOW), and organize one-on-one meetings with overseas buyers. For overseas marketing, we provide support to cover various expenses, including participation fees for exhibitions and related costs such as airfare and accommodation. Hyundai supports our suppliers in improving their quality and technology. In addition, we strive to maintain a structure in which demand for parts is stable and steady, so that our suppliers do not experience business difficulty, and
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e and accommodation. Hyundai supports our suppliers in improving their quality and technology. In addition, we strive to maintain a structure in which demand for parts is stable and steady, so that our suppliers do not experience business difficulty, and build an infrastructure for growth to boost technological development. We also help our suppliers to expand their global sales channels, helping them grow into stable and global companies. Reinforcing the Basis for Sustainable Growth Consortium to develop human resources Professional technical training Personnel, facilities and financial support Cyber training • Ensure stable sales volume • Provide opportunities to find local sales channels • Help suppliers establish viable operations in local markets • Supply high-quality parts on time • Contribute to the early stabilization of overseas plants Hyundai Motor Company Suppliers 074 Exhibition held in Shanghai 522.2 531.4 471.3 Lunar New Year in 2018 Chuseok in 2018 Lunar New Year in 2019 Small and medium-sized suppliers (sales of under KRW 500 billion) Large companies and medium-sized suppliers (sales of more than KRW 500 billion) Weekly cash payment Weekly payments using electronic bills Parts for domestic use Large companies and SMEs Monthly cash payment Parts for exports OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <74 END>
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<START 75> Strengthening the collaborative network Operating a collaborative council by tier 1 suppliers The collaborative council by tier 1 suppliers is a dialogue channel for Hyundai to share its policies and other information with its suppliers, to resolve any difficulties experienced by tier 2 and tier 3 suppliers, and to collate any requests that may arise during the production process. These councils enable us to share our policies on purchasing and quality with our suppliers, and to establish a culture of fair and transparent trade. Expanding support for tier 2 and tier 3 suppliers Fostering product quality technologies Maintaining and improving the quality and technology of the tier 2 and tier 3 suppliers that supply tier 1 suppliers is another key factor in improving the quality of finished Hyundai cars. Hyundai therefore dispatches our specialists to suppliers, free of charge, to share our expertise on quality, technology and productivity in automobiles, and to help suppliers increase their global competitiveness. Creating a culture of joint growth Joint growth agreements Hyundai has signed annual ‘joint growth agreements’ with its suppliers since 2008, as part of our commitment to joint growth. In 2018, we signed the tenth agreement which includes such areas as price adjustments in relation to the cost of raw materials, financial support programs, executing four action agendas for subcontract, and increasing support for tier 2 and tier 3 suppliers. Transparent Purchase Practice Center Providing suppliers guidelines on ethical conduct is important for both Hyundai and our suppliers, so that we can work together to produce finished cars in a fair and transparent way. We have therefore set up the Transparent Purchase Practice Center on our corporate website. The supplier suggestion box for transparent and ethical practices enables Hyundai to listen to their difficulties, and collect opinions on how we can improve as a purchasing company. In addition, there is a voice box for tier
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on our corporate website. The supplier suggestion box for transparent and ethical practices enables Hyundai to listen to their difficulties, and collect opinions on how we can improve as a purchasing company. In addition, there is a voice box for tier 2 and tier 3 suppliers as part of our complete commitment to fair trade and transparency throughout the supply chain. Awarding to best practice joint growth case Since 2009, Hyundai has evaluated the efforts made by tier 1 and tier 2 suppliers to generate joint growth, including better payment conditions, and gives awards to suppliers who have shown outstanding win- win efforts. We have awarded prizes to a total of 32 suppliers for their excellence in joint growth initiatives as of 2018. Hyundai believes that joint growth is essential in improving its own corporate competitiveness. We have therefore strengthened our collaboration networks not just with tier 1 suppliers, but also the tier 2 and tier 3 suppliers. We are also providing them with quality and technology support, to ensure that we create transparent and fair trade through a culture of joint growth. Establishing a Culture of Joint Growth Transparent and ethical practice suggestion box • Purpose of operating the suggestion box and report box • How to make a suggestion and report (internet/ARS) • Operation method (maintain anonymity and confidentiality) • Checking the outcome of measures • Action agenda for advisable conclusion of contracts • Action agenda for new supplier registration and management • Action agenda for management of an internal subcontract deliberation committee • Action agenda for advisable document issuance and preservation 4 action agendas for subcontract 075 Tier 1 suppliers’ collaborative council Quality and Technology Volunteer Group • Composition Specialists by work type • Period Work at the suppliers for 5-7 months to provide guidance free of charge • Area of guidance Injection, rubber, painting, electric and
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iers’ collaborative council Quality and Technology Volunteer Group • Composition Specialists by work type • Period Work at the suppliers for 5-7 months to provide guidance free of charge • Area of guidance Injection, rubber, painting, electric and electronic, cutting, heat treatment, press, welding, metal plating, cast iron casting, aluminum casting, forging, etc. • Composition Consultants with professional experiences in automobile industry as senior executives • Period Work at the suppliers for 3-12 months to provide consultation regarding overall management free of charge • Area of consultation R&D, production, production technology, quality, business management, overseas marketing, planning, etc. Supplier Support Group OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <75 END>
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<START 76> Establishing a sustainable supply chain Hyundai instituted policies and procedures to ensure the sustainability of our supply chain, guarantee stable sources of supply, and respond to risks caused by problems with suppliers. We work with many suppliers in our business operations, and operate a transparent and competitive value chain. We strive to minimize risks within the supply chain through a comprehensive analysis of both economic risks and non-economic factors such as quality, delivery, technology, safety, eco-friendliness, and win-win cooperation. Supply chain management policy Hyundai set out the Procurement Division Charter and Code of Ethics and the Suppliers’ Code of Ethics in 2009, with the goal of building a transparent and fair trade environment, and supporting sustainability management at our suppliers. The Suppliers’ Code of Ethics consists of: 1. Transparent management; 2. Win-win cooperation; 3. Environmental management; 4. Quality management; 5. Information security; and 6. Social responsibility. It also defines the social responsibilities of our suppliers. Full details of the Suppliers’ Code of Ethics are available on the Transparent Purchase Practice Center website. In addition, the Value Advanced Automotive Trade Zone (VAATZ) purchasing scheme systematically manages all of our purchasing processes, including supplier registration and evaluation and the management of purchasing contracts. Supply chain status Hyundai comprehensively examines important factors in categorizing suppliers as critical suppliers. These include the potential inability to replace parts from a specific supplier (especially key parts and items related to safety and security), whether the supplier possesses key technologies, and the possibility of advancing in partnership with a supplier into business sites overseas. Critical suppliers are those which supply key parts for a finished car manufacturer, such as module, powertrain, and electronics. As of 2018, about 100 of Hyundai’s total
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bility of advancing in partnership with a supplier into business sites overseas. Critical suppliers are those which supply key parts for a finished car manufacturer, such as module, powertrain, and electronics. As of 2018, about 100 of Hyundai’s total 3,500 suppliers were categorized as critical suppliers. We also manage suppliers below tier 1 in cases where there are high barriers to changing suppliers due to the characteristics and technology of specific parts. Such management includes examining the volume of trade, and evaluations, monitoring, and corrective measures to improve supply chain sustainability. Supply chain management Hyundai evaluates and monitors both new and existing suppliers for quality, delivery, technology, safety management, eco-friendly parts, and win- win cooperation. We encourage suppliers to improve by reflecting the results of our annual supply chain evaluations in competitive bidding processes. In 2020, tier 1 suppliers will additionally be evaluated for the level of their win-win cooperation with tier 2 suppliers, as well as existing factors such as payment conditions, fairness of contracts, observance of laws and regulations, and win-win cooperation with Hyundai. In the event of violations of the Suppliers’ Code of Ethics, such as problems with quality, violations of ethical regulations, collusion, or any act that hinders joint growth, Hyundai can place restrictions on the supplier concerned through our internal council, including bid restrictions. If suppliers fail in relation to safety standards, we take much stricter measures, including enforcing immediate corrective measures and requiring suppliers to obtain related certifications such as OHSAS 18001. Supply chain evaluation Classification Evaluation criteria Evaluation duration Quality • Quality management system • Incoming defects ratio • Claim cost reimbursement ratio • Quality management 1 year Delivery • Operational failures of production lines • Delivery rate for after-sales services
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Evaluation criteria Evaluation duration Quality • Quality management system • Incoming defects ratio • Claim cost reimbursement ratio • Quality management 1 year Delivery • Operational failures of production lines • Delivery rate for after-sales services • Delivery rate for knockdown parts 1 year Technology • Basic capability • Execution capability • Future capability 1 year Win-win cooperation • Payment conditions • Fairness of contracts • Efforts to observe laws • Support for win-win collaboration 1 year Safety management • Safety management manual • Safety management organization and personnel • Safety management training • Safety accidents 1 year Eco-friendly parts • Preventing harmful substances • Providing chemical information (IMDS) • Establishing an internal eco-friendly system • Environmental management 1 year Compliance with the Suppliers’ Code of Conduct • Transparent management (Anti-solicita tion and bribery prohibition) • Observance of trade contracts • Prohibition of discrimination 1 year 076 Supply Chain Management Transparent Purchase Practice Center Website Measures to improve supply chain sustainability Classification Index Annual evaluation ratio Prior evaluation Percentage of tier 1 suppliers from among those subject to sustainability risk evaluation 100% Percentage of high-risk tier 1 suppliers as a result of sustainability risk evaluation 19% Monitoring Percentage of critical suppliers from among those subject to supply chain monitoring 100% Percentage of high-risk suppliers from among those subject to supply chain monitoring 16% Corrective measures Percentage of suppliers with an established corrective action plan from among sustainability high-risk suppliers 100% Mid-to long-term ESG risk management criteria for critical suppliers Goal for 2022 Health and safety (OHSAS 18001) / Environmental management system (ISO 14001) 100% certified Management of IMDS registration 100% managed Establishment of a management system for suppliers’ ESG risks
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agement criteria for critical suppliers Goal for 2022 Health and safety (OHSAS 18001) / Environmental management system (ISO 14001) 100% certified Management of IMDS registration 100% managed Establishment of a management system for suppliers’ ESG risks Written evaluation, Promote ESG risk management system with all suppliers OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration • Compliance Program • Supporting Suppliers’ Growth • Supply Chain Management 4.7 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE 5. APPENDICES <76 END>
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<START 77> Winner of the joint growth index for five consecutive years In 2018, Hyundai was once again chosen as the Best Honorary Company in the joint growth index run by the Commission on Shared Growth for Large and Small Companies. It was the fifth consecutive year for Hyundai to be awarded with such honor. The Commission evaluates some 180 Korean companies to determine companies that have the most significant ripple effects, measured in terms of sales, pursuant to Article 20 of the Act on the Promotion of Collaborative Cooperation Between Large Enterprises and Small-Medium Enterprises. The best companies are awarded with government incentives. * Major areas for evaluation: Fair contracts, efforts to prevent all violations of laws, support for win-win cooperation, co- operative business relationships, etc. 2018 Declaration of commitment to fair trade Twice a year, our CEO reminds all Hyundai staff of the company’s total commitment to fair trade. This declaration regarding compliance with fair trade was shared in January and July 2018, and all of our work reflects our strict guidelines related to fair trade. Hosted the 7th Supplier Job Fair The Hyundai Motor Company & Kia Motors Supplier Job Fair was launched in 2012 to help suppliers recruit outstanding talent. The seventh fair, which took place in 2018, was exclusively for tier 2 and tier 3 suppliers, so that Hyundai could actively help small- to mid-sized parts companies that are experiencing difficulty in recruitment. Some 281 suppliers participated in the job fair, which took place in six regions across the nation, including Seoul, Ansan, Ulsan, Gwangju, Daegu, and Changwon. 077 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Major Performance & Plan 2018 Performance 2019 Plan Mid-to Long-term Plan Supporting Suppliers’ Growth • Helped suppliers hire talents - 6 job fairs, participated by 281 companies • Help suppliers hire talents - Expand the job fair to be held at the Group
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rformance & Plan 2018 Performance 2019 Plan Mid-to Long-term Plan Supporting Suppliers’ Growth • Helped suppliers hire talents - 6 job fairs, participated by 281 companies • Help suppliers hire talents - Expand the job fair to be held at the Group level participated not only by finished car subsidiaries and their suppliers but also by other Group subsidiaries and their suppliers • Cultivate global competitiveness - Foster quality competitiveness; Develop R&D capability; Enhance productivity • Reinforce the basis for sustainable growth - Strengthen foundation for sustainable management; Build infrastructure for growth; Expand global sales channels • Establish a culture of joint growth - Strengthen the collaborative network; Expand supports for tier 2 and 3 suppliers; Create a culture of joint growth • Provided support for suppliers to build smart plant - Supported a cumulative total of around 450 companies from 2016 through 2018 • Provide support for suppliers to build smart plant - Expand to include tier 2 and tier 3 suppliers, and support a cumulative total of around 800 companies from 2019 through 2021 • Provided export marketing support for suppliers - Helped suppliers participate in automotive parts exhibitions held in Korea and overseas - Offered an overseas buyer matching program • Provide export marketing support for suppliers - Choose around 90 companies every year, and support a cumulative total of around 270 companies by 2021 Hyundai’s’ Win-win Collaboration Fair trade based on a healthy partnership is a core value for Hyundai as we pursue win-win growth in partnership with our suppliers. We are helping suppliers achieve sustainable growth over the mid-to long-term through three main strategies – cultivating global competitiveness, reinforcing the basis for sustainable growth, and establishing a joint growth system. We are thus creating a virtuous cycle whereby we support growth in our value chain, and then share
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through three main strategies – cultivating global competitiveness, reinforcing the basis for sustainable growth, and establishing a joint growth system. We are thus creating a virtuous cycle whereby we support growth in our value chain, and then share the value generated with our suppliers. <77 END>
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<START 78> Talents that realize core values PEOPLE 078 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices For the last 50 years, Hyundai has been privileged to work with open- minded, responsible and exceptional talent who are constantly at work to create new value and realize new possibilities. Going forward, we will realize our vision of serving as a ‘lifetime partner in automobiles and beyond’ by working together with people who are committed to sustainable growth through challenge, creativity, passion, collaboration, and a global mindset. <78 END>
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<START 79> We cultivate diversity and inclusion in our workplace. The automotive industry is undergoing many profound changes in today’s Industry 4.0 era, in particular the convergence of information and communication technologies and deployment of eco- friendly energy. To respond to today’s and future market changes, we recruit outstanding personnel who are able to identify market trends and develop advanced technologies. Moreover, we seek to hire individuals with exceptional professional skills, and support them so that they can succeed in meeting their self-development goals. Hyundai is also building a cooperative relationship between labor and management to ensure employee rights are fully protected. To this end, we continue to expand the channels of communication between labor and management, and strive to find reasonable, constructive solutions. In addition, we are continually setting health and safety-related goals and making improvements in this area with the goal of building a safe and healthy work environment. Valuing talent who moves the world forward Sung Mo Koo Manager, HR Management Team 2, Hyundai Motor Company As industries converge ever-faster and markets change ever more sharply, Hyundai continues to implement its strategies for becoming a future mobility company. It is vital to recruit talented individuals with outstanding skills, so that we can provide our products and services quickly, and in a customer-focused way. As a result, after recognizing there were limitations with our previous semi-annual recruitment system, we have changed our recruiting structure to a year-round open system. We also undertake worksite-oriented recruitment planning and screening. Experts at our worksites develop the evaluation questions used in screening and interviews, focusing on issues that are of most concern at the worksites. Interview methodology is also constantly being assessed to ensure that we are recruiting the best people. In addition, worksites are
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e evaluation questions used in screening and interviews, focusing on issues that are of most concern at the worksites. Interview methodology is also constantly being assessed to ensure that we are recruiting the best people. In addition, worksites are able to undertake their own direct recruitment whenever necessary. For applicants, this increases employment opportunities and enables them to enjoy life more as college students. From the company’s perspective, year-round recruitment allows us to provide detailed information about jobs at Hyundai, so that we get more and better applicants, which in turn leads to higher job satisfaction and lower staff turnover. Ongoing open recruitment also eliminates some of the problems that occurred in our previous system, including postponement of graduation, excessive competition, and the requirement to invest substantial time and costs. We also expect the new system to create a virtuous cycle in recruitment between applicants, colleges, and companies – as college life is enriched by a reduction in resources expended in preparing for employment, and as curriculum reforms prepare students to perform better in jobs in the real economy, companies will be able to hire outstanding personnel who are already prepared to perform their work duties to the highest standards. 079 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Stakeholder Interview <79 END>
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<START 80> Researcher scholarships and contracted college departments Our researcher scholarships and contracted college departments are helping to develop the outstanding personnel who will drive technological development in the automotive sector and support our future competitiveness. Launched in 2003, the annual researcher scholarships are awarded to outstanding students enrolled in undergraduate, master’s or doctoral degrees programs in natural sciences, engineering, or design. We also provide additional support and mentoring for their academic activities. Began in 2015, the contracted college department system is fostering outstanding talent in four vital areas of research ‒ ICT, integrated system control, energy systems, and electrification ‒ by forming a convergence education model in partnership with major Korean universities. We provide scholarship students with education programs that are closely connected to the needs of our worksites, so that students can concentrate fully on their research and become high achievers once they join Hyundai. We will continue to offer researcher scholarships and our support to college departments so that we can nurture the personnel needed to perform pivotal roles in next generation of automotive technologies. Hiring Outstanding Global Talents With the breakdown of boundaries between the automotive and the electronics industries, Hyundai is becoming a mobility company. We are therefore focusing on hiring people who can contribute towards eco- friendly, autonomous, and connected cars. In the first half of 2018, we began to recruit new employees in software, and there was also year- round recruitment on five occasions in R&D, plant, new business strategy, and others. We will continue to hire a wide range of talent, both new recruits and experienced professionals, to ensure growth in the future strategic areas and to make certain that we have the best people at every level of the company. Expanding year-round recruitment
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ll continue to hire a wide range of talent, both new recruits and experienced professionals, to ensure growth in the future strategic areas and to make certain that we have the best people at every level of the company. Expanding year-round recruitment Hyundai is changing its recruitment systems in order to respond effectively in the Industry 4.0 era. We are expanding year-round recruitment of individuals with the specific skills needed at our worksites and to attract more specialists. Also, in line with a year-round recruitment process that is driven by worksites, we plan to adopt an optimized recruitment system according to job requirements. We are also working on the timely recruitment of outstanding personnel by building a detailed HR database and organizing a number of recruitment programs. Areas of year-round recruiting in the second half of 2018 R&D Division Vehicle design; Vehicle assessment; Development of materials, powertrain, and commercial vehicles and Technology management Strategy & Technology Division Development of deep learning and platform software People & Business Oprn. Support Division, Corporate Human Resource Division HR support and IT security Ulsan Plant, Asan Plant, Jeonju Plant Plant maintenance technology and plant operations Finance & Accounting Division Cost accounting Attract talents with job-specific expertise Research Areas ICT Integrated system control Energy system Core parts for electrification • AI, Big data, Connectivity (Contracted college department) • Convergence technology, Robotics (Researcher scholarships) • Autonomous driving, Powertrain controls (Common) • Battery, Fuel cell (Contracted college departments) • Future energy technology (Researcher scholarships) • Powertrain (Common) Recruitment process for new employees Year-round recruitment Application (Different cover letter items for each job duty) Application review Interview (Aptitude test) Interview with executives Job placement Large-scale open recruitment Application
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Recruitment process for new employees Year-round recruitment Application (Different cover letter items for each job duty) Application review Interview (Aptitude test) Interview with executives Job placement Large-scale open recruitment Application (Same cover letter items) Application review HMAT (Hyundai Motor Group Aptitude Test) Interview Interview for job placement Job placement 080 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES Recruiting and Supporting Global Talents <80 END>
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<START 81> Securing outstanding talents in R&D IT and ICT Science and engineering capability Convergence technology Securing future competitiveness H-Career Fair We held the H-Career Fair and shared information on our job application process and the company’s recruitment direction. It was also a venue where we shared our future vision related to new businesses and new future technologies. There were around 200 participants on site. We provided online live broadcasting to deliver recruitment information to a total of around 66 thousand individuals. Also, we organized a wide array of programs to provide practical support to applicants, including the ‘Recruitment Talk Concert’, ‘Task Talk Concert’, and ‘Mentoring by Hyundai Employees’. Global Top Talent Forum In August 2018, Hyundai hosted the Global Top Talent Forum in San Diego, U.S. as part of our initiative to attract outstanding overseas personnel with masters and/or doctoral degrees in natural sciences or engineering. There were seven sessions at the Forum, covering AI and software platforms, autonomous driving, connected cars, future mobility, eco- friendly vehicles, cutting-edge lightweight materials, and basic vehicle performance. All participants were given a presentation fee, and the best speaker at each session received additional benefits, such as prize money, an offer to join the Hyundai Motor Group, or the opportunity be a recipient of our researcher scholarship. The main theme of the 2018 forum centered around topics related to software, as convergence across diverse fields is vital to our future competitiveness. We will continue to recruit outstanding people who can identify the issues of the future within our industry, and develop key technologies in response. Outstanding R&D Talent Career Fair We held a career fair for outstanding talents in natural sciences and engineering to bolster our future technological competitiveness. Participants at the event included researchers in diverse areas, including
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sponse. Outstanding R&D Talent Career Fair We held a career fair for outstanding talents in natural sciences and engineering to bolster our future technological competitiveness. Participants at the event included researchers in diverse areas, including robotics and AI, electrification, eco-friendly cars, and cutting-edge materials. We held consultation sessions on tasks and shared our future vision. A total 848 people participated in the career fair, of which 623 persons took part in the sessions. Also, outstanding participants of the sessions received recognition as passing the document screening process. We thus provided excellent talent with an opportunity to realize their dreams at Hyundai. Recruitment Talk Concert • A Q&A session on recruitment process with staff of the Talent Recruitment Team Task Talk Concert • Discussion on tasks with Hyundai employees, including future vision Recruitment Talk Concert for Experienced Professionals • A session on recruitment process for experienced professionals and life after joining Hyundai Mentoring by Hyundai Employees • An in-depth Q&A session with Hyundai employees working at a desired field by candidates Special Lectures • Special lectures by worksite personnel 081 2018 Global Top Talent Forum Career fair for outstanding talents OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES <81 END>
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<START 82> Nurturing Talents Based on the belief that employees’ growth leads to the company’s growth, Hyundai is enhancing our future competitiveness and sustainable growth by instituting personnel policies that are driven by the requirements of our work sites, and by building a learning culture. We have established long-term strategies for nurturing talents in leadership, job expertise, and learning culture, and we are changing training programs to focus on self-led customized learning that enables individuals to choose their own path in becoming leaders and experts. In addition to strengthening leadership for sustainable growth and building the learning infrastructure, our self-led learning systems will enable staff to learn whenever, wherever, and ways selected by them. Strengthening leadership from a sustainability perspective Hyundai’s leadership program is designed to go beyond growth of individual leaders. The program aims to instill organization impact from the sustainable growth perspective. We are expanding initiatives to nurture leadership that are adept in responding to internal and external environment changes. We pursue qualitative innovation of our leadership program through timely content and delivery innovation. Improving job expertise at each area We are improving job capacity across all areas of the company in order enhance job expertise of our employees. Employees develop the capacity needed to perform their work and can improve their skill sets in various ways, according to the individual’s requirements and preferences through various solutions. To this end, our training department and each work area are working together to develop an academy for each area, and will offer extensive learning content, including internal and external training, e-books, MOOC, and study meetings, thereby enhancing job expertise of our employees. Building a worksite-led learning infrastructure Hyundai is establishing a talent development system according to the
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content, including internal and external training, e-books, MOOC, and study meetings, thereby enhancing job expertise of our employees. Building a worksite-led learning infrastructure Hyundai is establishing a talent development system according to the requirements of each job area in order to support the internalization of work site-driven and self-led learning culture. We provide opportunities for staff to develop both general job capacity and specialized job capacity needed in their own work area. Our employees are thus enabled to expand their areas of expertise and develop creative problem-solving skills. 082 New training system We fully support the professional growth of all of our individual employees, and we are preparing to adopt a self-led learning system that will help our employees enhance their employability. In particular, we are focusing on developing the skills needed to perform work duties through education targeted around individual’s specific requirements. This open learning platform and learning solutions, based on data generated by our employees, enable our staff to access knowledge and information anywhere and at any time. We believe the new training system will serve as a foundation for developing our employees into experts. Leadership program FOSTERING TOP LEADERS Hyundai has adopted new training programs for our top leaders, including the CEO and directors, in order for them to understand their respective roles and recognize the importance of preparing for the future. We strengthened programs related to strategizing plans for the future to intellectually challenge group leaders, while we offered individually-tailored programs to newly promoted executives, increasing their capacity in building leadership. DEVELOPING CHOSEN TALENTS We actively select individuals with global business insights to form a pool for the top managers of the future. We are continually developing top leaders who are able to respond
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ncreasing their capacity in building leadership. DEVELOPING CHOSEN TALENTS We actively select individuals with global business insights to form a pool for the top managers of the future. We are continually developing top leaders who are able to respond quickly and effectively to changes in the internal and external business environment. Training on press Field training on painting robot (basic) OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES Mid-to long-term talent development strategy Internalization of work site-driven and self-led learning culture Vision Strategy • Improve leadership training system • Develop solutions for leaders (basic, advanced, year-round, track, etc.) • Build a leadership support center • Standardize the company-wide talent development system • Establish a talent development system by job function • Develop an academy • Plan a new talent development system • Develop a year-round learning system (open learning platform) Strengthen leadership from a sustainable growth perspective Strengthen job expertise at each area Build a year-round learning infrastructure led by work site <82 END>
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<START 83> Fostering R&D talent Strategic development of outstanding R&D talent is a vital for Hyundai in improving its future competitiveness and finding the drivers of sustainable growth. We are therefore developing the technological capabilities of all of our researcher, and providing dedicated training for key leaders. In addition, we are enhancing our R&D capabilities by building constant learning systems focused on the requirements of our work sites. To this end, we are building self-directed constant learning infrastructure, including system, and provide optimized learning solutions. Mid-to long-term R&D talent development FOSTERING OVERSEAS R&D TALENT It is essential to establish customized overseas HR strategies in fast-changing, global markets. We are therefore strengthening the leadership and job capacity at our overseas subsidiaries and research institutes. At the Hyundai Motor Technology & Engineering Center (China) and the Hyundai Motor India Engineering Pvt. Ltd, we are actively hiring local personnel and training them in design and car testing. We have also hired local staff at the Hyundai America Technical Center and the Hyundai Motor Europe Technical Center in order to strengthen our position in areas such as eco-friendly vehicles, car IT, and ADAS. 083 Hyundai America Technical Center Hyundai Motor Europe Technical Center Hyundai Motor Technology & Engineering Center (China) Hyundai Motor India Engineering Pvt. Ltd Career development and job posting systems Hyundai enables self-directed achievement of career development goals through diverse experiences. We help employees develop extensive job expertise by providing opportunities to experience jobs they are interested in, in addition to the experiences and knowledge that they accumulated in their respective professional field. In this way, we are expanding employee expertise and also contributing to strengthening understanding and communication among different areas. Career development system
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eriences and knowledge that they accumulated in their respective professional field. In this way, we are expanding employee expertise and also contributing to strengthening understanding and communication among different areas. Career development system Hyundai regularly assesses needs for department/job transfers to identify employees’ interests and job satisfaction and assign them to appropriate jobs and motivate them to perform better. Employees wishing to develop their career can freely apply for desired jobs and departments on a yearly basis. Job posting system When a specific role is required, Hyundai posts the opportunity in-house first to take advantage of internal talents and offer our employees chances to challenge themselves with different lines of work. Employees check job description and required qualifications on a posting and submit their application. Select job transfer candidates after considering their personal goals and job experiences Determine candidates’ aptitude, competencies, and career plans through interviews Finalize selection process and implement a departmental transfer based on the review of candidates’ characteristics and career plans, among others A/S Mechanic Support A/S Junior Mechanic A/S Mechanic A/S Senior Mechanic Chief Mechanic Associate Assistant Manager Manager Deputy General Manager General Manager Operator Associate Senior Operator Assistant Manager Junior Technician Manager Technician Deputy General Manager Senior Technician General Manager Chief Technician Director Engineer Senior Engineer Managerial R&D Production Sales A/S Duty type and position system of Hyundai Motor Company OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES Improving capabilities of the entire R&D researcher • Improve specialized technical capabilities • Strengthen organizational capacity and develop
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Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES Improving capabilities of the entire R&D researcher • Improve specialized technical capabilities • Strengthen organizational capacity and develop an innovative mindset Building a R&D self-directed constant learning infrastructure • Develop and provide constant learning solutions • Establish an optimum talent development support system Developing core leaders in R&D • Strategically foster technical leaders • Strengthen organizational leaders <83 END>
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<START 84> Supporting work-life balance Hyundai offers various welfare programs to improve the quality of life for our staff. We provide financial support for travel expenses and operate daycare centers to help employees who are managing the cost burden of child rearing. Other welfare programs also help our employees enjoy their daily lives and vacation time. Retirement pension Hyundai has put into place a retirement pension system to help our employees fund and plan for their lives after retirement. Hyundai uses third-party administration services as a way to protect retirement pensions, and the company also provides education for pension subscribers about retirement planning, including all necessary information on personal pension products, thereby helping our employees build a foundation to enjoy life after retirement. Organizational Culture Hyundai is building a creative and agile organizational culture through its organizational culture innovation platform ‒ Culture Change Program (CCP). In particular, we are focusing on the goals of establishing a horizontal communication culture, building vertical trust in organization, and promoting creativity by building an active and autonomous work atmosphere. In addition, we are operating a wide range of programs to ensure the right work-life balance for our staff. Organizational culture survey We conducted an organizational culture survey in September 2018 to identify the level of corporate culture by organizational unit. The assessment consisted of 76 questions, divided into seven categories ‒ business, people, work, leadership, organizational effectiveness, HR system, and infrastructure. About 79.5% of general and research staff participated in the assessment. We will continue to carry out assessments in the future to improve our organizational culture. Change management program Following the initial implementation of the organizational culture survey in 2017, Hyundai has in place a change management program that is led by a
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to carry out assessments in the future to improve our organizational culture. Change management program Following the initial implementation of the organizational culture survey in 2017, Hyundai has in place a change management program that is led by a senior member at each worksite. There are both common and specialized targeted programs, including programs covering collaboration, leadership, creativity, and communications. There was a total of 371 culture change programs (CCPs) and 188 specialized programs for 81 organizations at Hyundai in 2018. R&D Female Vision Conference Our female employees work in vital roles across the company, including R&D, engineering, and maintenance. Hyundai strives to build a corporate culture in which our R&D female employees benefit from a culture of mutual respect and active support to find a direction rather than an answer to their roles within the organization. In 2018, we hosted the R&D Female Vision Conference, consisting of workshops, lectures, and a talk show on the theme of “Modern women, asking about a path and finding a path”. We will continue to offer a wide range of programs so that our female staff can plan their careers and strike the right balance between their work and personal lives. R&D Idea Festival Hyundai has hosted the R&D Idea Festival every year since 2010, to create a vibrant atmosphere for technological development and to establish an R&D culture of mutual cooperation. Researchers’ ideas on future mobility are made into actual objects and then demonstrated to participants. • Overseas traveling for long-term employees: Cover traveling expenses for long-term employees and their families • Child Happiness Travel: Provide hotel lodging to employees for a certain period before and after pregnancy Employee travel support programs • Operating on-site childcare centers since 2013 for married female employees and single-parent households • Located at 5 locations ‒ headquarters, Ulsan Plant,
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loyees for a certain period before and after pregnancy Employee travel support programs • Operating on-site childcare centers since 2013 for married female employees and single-parent households • Located at 5 locations ‒ headquarters, Ulsan Plant, Asan Plant, Jeonju Plant, and Namyang Technology Research Center On-site childcare center • Employees can choose when they come to and leave work, other than regular working hours (10 am to 4 pm) based on the condition that the weekly average of 40 hours is met Flexible work system • Offer customized exercise prescription for employees, swimming lesson program, etc. • Located at headquarters and major business sites for greater convenience for employees and their families Gymnasium Categories for the organizational culture survey People Business Work Infrastructure Leadership HR system Organizational effectiveness NAMU ‒ the grand award winner in the 2018 R&D Idea Festival ‒ implementing freedom in mobility by developing stair climbing wheels Participants of the 2018 R&D Idea Festival 084 R&D Female Vision Conference OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES <84 END>
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<START 85> Safety Report Center The Safety Report Center has been integrated into our safety systems in order to ensure company-wide recognition of the importance of safety, to share issues around safety, and to encourage accident prevention, with rewards given to employees submitting excellent safety reports. The Safety Report Center enables us to implement swift actions on safety improvements to prevent major accident. Operation process of the Safety Report Center Operating H-SAT The Hyundai-Safety Assessment Tool (H-SAT) was developed in order to measure the safety, health and environmental (SHE) performance at each plant in a quantitative way, and to improve weak part of SHE management. The comprehensive H-SAT evaluation gives points according to the quality of safety, health, firefighting, and environmental protection. Pilot operations have been completed, and we will use the H-SAT as a framework for developing SHE policies and strategies, and for improving SHE levels. Employee Safety and Health Hyundai abides by all labor laws and regulations of all countries where our business sites are located, so that our employees can be assured of their fundamental rights, such as the right to organize and collective bargaining. In addition, we regularly communicate with our employees at home and abroad, and spare no effort to identify their grievances and demands and take actions on them preemptively. To protect the safety and health of our employees, we announced our fatal accident zero safety and health management policy, and strive to make improvements every year. In 2018, we achieved “ZERO” fatal accidents for two consecutive years, and our efforts to prevent safety accidents came to fruition. Improving safety leadership Hyundai is working towards achieving “ZERO” fatal accidents by strengthening safety leadership at our business sites driven by top management. Major safety leadership activities, such as safety meetings and inspections,
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on. Improving safety leadership Hyundai is working towards achieving “ZERO” fatal accidents by strengthening safety leadership at our business sites driven by top management. Major safety leadership activities, such as safety meetings and inspections, enhance the implementation of safety policies, and quickly remove risk factors at business sites, thereby maximizing accident prevention effects. In addition, our company-wide safety meetings and overseas video conferences enable us to operate same safety policies in Korea and overseas. We also widely promote outstanding examples of business site safety, to ensure that safety management continues to improve throughout the company. Preventing fatal accidents Hyundai analyzed all serious accidents occurred at its Korean and overseas business sites, and has derived key safety rules to prevent accidents, based on which we established the Nine Safety Golden Rules. As a result, we have achieved zero fatal accidents for two consecutive years. In addition, the Turkey Plant and the Brazil Plant had zero occupational accidents throughout 2018. This was the second year in a row for zero accidents at the Turkey Plant. The Turkey Plant is the first Hyundai plant to achieve this. We will continue to improve our safety management, giving top priority to the lives of our workers, and we will make all our business sites safer through institutional improvements in meeting our key performance indicators. Using IoT technology for safety inspections Hyundai has built a mobile safety inspection system using NFC tags in order to achieve zero fatal accidents. We also use the big data based on the result of the safety inspection, which will be used for improving workplace safety. And it can further reduce the risk of fatal accidents. This system was first introduced in 2018, and will be fully established at work sites company-wide, thereby enhancing credibility of safety inspections. Safety alert systems for logistics equipment
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And it can further reduce the risk of fatal accidents. This system was first introduced in 2018, and will be fully established at work sites company-wide, thereby enhancing credibility of safety inspections. Safety alert systems for logistics equipment Hyundai has installed safety alert devices in hazardous areas where logistics equipment is operated in order to prevent accidents from collisions and jamming. Smart alert devices send out visual and audible alerts in major danger zones, enabling workers to undertake logistics work more safely. Logistics equipment (Transmitter) Hazardous area (Receiver) Approach Send safety alert Safety check by using an NFC tag 085 Guaranteeing Workers’ Rights and Communication OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES • Discover a risk factor at a business site • Run the Safety Report Center mobile application and take pictures • Confirm receipt of report (determine whether to accept report, categorize report into safety or non-safety matters) • Enter the results of safety measures taken and provide feedback to the informant Discover a risk factor (all business sites and employees) Confirm receipt of report and notify results Report to the Safety Report Center • Provide information on the location of discovering the risk factor and relevant content <85 END>
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<START 86> Safety management activities at overseas business sites in 2018 HMMA • Carried out a pilot operation of a wearable vest (upper body type) to prevent musculoskeletal disorder and reduce physical load on production staff (April) • Carried out a pilot operation of wearable chair (lower body type) to prevent musculoskeletal disorder and reduce physical load on production staff (July) HMMC • Expanded the safety leader system to implement safety management in close connection with worksites • Installed and used drowsiness prevention devices for vehicle drivers to prevent traffic accidents HMB • Strengthened accident prevention activities through the Intensive EHS Program • Conducted focused inspections and a fire drill to prevent fire accidents during the dry season (July-September) BHMC • Operated a safety level index management system for major A-grade risk processes • Carried out activities in the Month of Safe Production (June-July), such as safety promotion, emergency training, safety inspection, and contest HMI • Made improvements to safety protection devices (laser scanner) to prevent jamming accidents at car body plants • Improved road and facility, and conducted campaign to prevent traffic accidents HAOS • Strengthened accident prevention activities through concentrated safety inspections at scrap treatment sites • Organized the Safety Week campaign to enhance the safety mindset HMMR • Prevented accidents through focused management of hazardous areas ‒ A_B_C Zone • Conducted a fire drill tailored to working conditions 086 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES <86 END>
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<START 87> Communicating with Employees Hyundai guarantees the labor union’s rights to free union, collective action, and collective bargaining. The company also shares information and promotes effective communications between labor and management by holding briefing sessions to fully inform employees about the status of the company and changes in our business activities. Communications with the labor union Hyundai fully observes the Korean Constitution and all laws on employee rights, including the right to organize labor unions and the rights to collective action and collective bargaining. We also run the Collective Bargaining Council and the Labor-Management Council, pursuant to relevant laws. In addition, the Work Change Promotion Committee discusses changes in working hours, the Wage System Improvement Committee discusses regular wages and the minimum wage, and the Job Stability Committee is preparing for the era of the Fourth Industrial Revolution. Social contribution activities jointly by labor and management Labor and management of Hyundai conduct social contribution activities for local communities and residents near the company’s business sites in Korea. We organized various social contribution activities in 2018, including the preparations for the establishment of Ulsan Kids Auto Park in addition to our regular social contribution activities. Our employees participate in community service activities through the Technician Volunteer Group, and volunteer groups of each business division and clubs. Hyundai labor and management will seek diverse ways, including raising social contribution funds, to fulfill our corporate social responsibility, pursue win-win cooperation with local communities, and contribute to regional development. Labor union (employee) communication at overseas business sites BHMC and CHMC in China have Chinese Trade Unions; HMI in India and HMMC in the Czech Republic have labor unions; and HMB in Brazil joined
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mmunities, and contribute to regional development. Labor union (employee) communication at overseas business sites BHMC and CHMC in China have Chinese Trade Unions; HMI in India and HMMC in the Czech Republic have labor unions; and HMB in Brazil joined the local federation of trade unions in the early stage of its existence according to the local labor laws. The subsidiaries with labor unions not only conduct collective bargaining with labor unions according to local labor laws but also hold regular and irregular meetings with union representatives to make improvements in working conditions and employee benefits. Hyundai carries out collective bargaining with labor unions in a way most employees can concur with its conclusions through reasonable and constructive proposals and discussions between labor and management. HMMA in the U.S., HMMR in Russia, and HAOS in Turkey have no labor unions. Hyundai’s overseas subsidiaries actively communicate with their employees in various channels regardless of whether they have labor unions or not. The Headquarters conducts surveys and interviews with Hyundai employees around the world on a biennial basis to continue improving employees’ satisfaction with the company. Each overseas subsidiary preemptively resolves employees’ complaints and meets their demands through roundtable meetings with executives, grievance counseling rooms, and top management’s on-site communication. We also offer our field managers various training programs, so that they can enhance their competencies and solve workers’ grievances at the work site as they spend most of their time together with on-site workers. H-Mate communications application The H-Mate application promotes communication between our employees, and helps to build good labor-management relationships. As of February 2019, some 23,400 employees have subscribed, and an average of 4,400 people per day access the application to use it for a wide range of activities. Services include: company news; work notices;
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uild good labor-management relationships. As of February 2019, some 23,400 employees have subscribed, and an average of 4,400 people per day access the application to use it for a wide range of activities. Services include: company news; work notices; the ‘I am Curious’ Q&A functions for questions related to Hyundai; the ‘Let’s Come Together’ function to recruit club members; and the ‘Let’s Apply’ survey function. These services are helping to bring our employees together by increasing communications between them. 087 Wage, collective bargaining agreements Joint leadership workshop, HMCSA HQ OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.7 People 4. SUSTAINABILITY PERFORMANCE • Recruiting and Supporting Global Talents • Guaranteeing Workers’ Rights and Communication 4.8 Community 5. APPENDICES <87 END>
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<START 88> Employee Town Hall Meeting Hyundai is striving to expand the scope of our thinking through an agile corporate culture. We therefore set up a Town Hall Meeting in 2019 as a communication channel between employees and the company. Any employee can take part in the Town Hall Meeting, either by visiting the first floor of the headquarters building, or through online chatting. They can voice their opinions freely, and ask any questions about major company policies and other issues. We will continue to host these Town Hall Meetings to promote horizontal communications with our people and to collect new ideas and opinions on policy issues. Jeonju Plant ‒ a winner of the 2018 Nationwide Circle Contest Hyundai’s Jeonju Plant presented ideas under the theme of risk reduction by improving risk factors in axle process at the 2018 Nationwide Circle Contest organized by the Ministry of Trade, Industry and Energy, and received the bronze award in the environment and safety category. HMB wins the ‘2018 Brazil Health and Safety Award’ Hyundai Motor Brazil (HMB) received the 2018 Brazil Health and Safety Award, organized by Revista Proteção ‒ a prestigious magazine in the area of industrial health and safety. Integrated organizational culture survey Hyundai carries out an annual worldwide assessment of our organizational culture in order to determine the level of our organizational culture from an integrated perspective and to identify measures for improvement. We assess areas of our corporate culture such as business, people, and work, as well as organizational effectiveness, leadership, HR system, and the IT infrastructure. The 2018 assessment showed year-on-year improvements, demonstrating the results of our commitment to improving our organizational culture. 088 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Hyundai’s Respect for People
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showed year-on-year improvements, demonstrating the results of our commitment to improving our organizational culture. 088 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Hyundai’s Respect for People Our people are the basis of Hyundai’s sustainable growth. That is why we have established an impartial year-round recruitment system and various HR training programs with the goal of attracting talents and enabling them to fulfill their potential. We are also committed to building an excellent workplace and ensuring the right work-life balance. We therefore go well beyond simply guaranteeing rights, and operate a number of support systems and communication channels. We will continue to build a work environment that our employees can enjoy the highest levels of health and job satisfaction from a mid-to long-term perspective. Major Performance & Plan 2018 Performance 2019 Plan Mid-to Long-term Plan Recruiting and Supporting Global Talents • Chose 15 H-Recruiters at work sites, targeting tasks related to the future vision, and conducted a pilot program for six months • Establish a pipeline for recruiting by expanding the H-Recruiter to be 50 persons at the corporate level • Actively secure future technology, and organization and human resources related to new businesses • Establish a work site-driven agile HR operation system, and improve personnel management system to encourage employee engagement • Conducted a pilot year-round recruitment to hire new employees at five major divisions in the second half of the year • Expand the work site-driven year-round recruitment system to the corporate level • Re-established directions for human resources development (HRD), and defined strategic tasks • Overhauled the HRD system and standard guide • Identify the status of work site-driven constant learning systems, and derive improvement measures • Build an infrastructure for constant learning at the corporate level, and develop a driver
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tasks • Overhauled the HRD system and standard guide • Identify the status of work site-driven constant learning systems, and derive improvement measures • Build an infrastructure for constant learning at the corporate level, and develop a driver for change • Launch a new HRD system after 2020 • Operate an open learning platform, and continue change management Guaranteeing Workers’ Rights and Communication • Achieved zero fatal accidents by inspecting disaster prevention activities • Achieve zero fatal accidents, serious fire, and traffic fatalities • Guarantee employee safety and health by building safe, accident-free business sites <88 END>
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<START 89> Adding value to our community COMMUNITY 089 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Hyundai’s efforts to resolve social issues together with stakeholders are not limited to local communities where we conduct business. We help resolve major common social issues facing communities across the world by promoting cooperation with various stakeholders and leveraging our expertise. <89 END>
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<START 90> We are adding to the value of Hyundai by growing in harmony with local communities. As a global leading company, Hyundai seeks to move forward together with members of communities where we have offices worldwide. We are striving to enhance the quality of the lives of local community members by going beyond production and service provision, and engaging in a wide array of social contribution activities addressing local community needs. Rather than one-off contributions, we conduct social contribution activities in accordance with five areas ‒ eco-friendly, mobility innovation, traffic safety, future generation, and community. Through these activities, we aim to deliver Hyundai values to local communities while also contributing to achieve the United Nations Sustainable Development Goals (SDG). These and other efforts of ours will have a positive influence on those who are marginalized in local communities and future generations. Stakeholder Interview As a lifetime partner for a better tomorrow Hyundai is playing an active role in bringing actual and tangible benefits to local communities and visitors while preserving Petra in good condition for future generations. By providing free Wi-Fi, visitors are having smooth access to the internet so that they can get additional information and share their experiences with their friends, family via social networks. A communication network ensures better safety at the site, enabling crowd management in emergency situations. During floods last year, the authorities were able to inform and urged everyone within the archaeological park to leave the site immediately. Interpretive signage provides visitors detailed information, enhancing enjoyment and their understanding. Further support includes materials such as brochures and a 3D model of the World Heritage Site. Prior to Hyundai’s support, we allowed access to and around the site only by walking or using animal transport. By providing clean
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and their understanding. Further support includes materials such as brochures and a 3D model of the World Heritage Site. Prior to Hyundai’s support, we allowed access to and around the site only by walking or using animal transport. By providing clean and ecofriendly shuttle busses, more tourists are able to enjoy the full experience of Petra, while minimizing the environmental impact. All the works were planned in careful consultation with the Petra Authority, which in turn has received all approvals from UNESCO and other authorities dedicated to preserving World Heritage sites. Our projects at Petra directly affect city services, tourists, and local communities. Since we started, the number of visitors to the city of Petra has almost doubled – and expected to grow. Hyundai is helping to bring greater economic benefits to the local community. We are helping to ensure that a growing number of visitors to the ancient city of Petra are managed in a responsible and sustainable way, creating a better environment for visitors and for locals. 090 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices Mohammad Badwan Hyundai Motor M.East & Africa Customer Experience <90 END>
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<START 91> 091 6 Moves of Hyundai Motor Group CSV strategy system (P. 30) Hyundai conducts social contribution activities for creating shared value (CSV) in accordance with the five major areas – eco-friendly, mobility innovation, traffic safety, future generation, and community – in which we have established our CSV strategy system. We manage our mid-to long-term CSV portfolio according to the objectives of each area, and continue our efforts in bringing a positive impact on society in a more efficient way. In addition, our CSV activities for each area are related to the Hyundai Motor Group’s major social contribution areas, called ‘6 Moves’ – Safe Move, Easy Move, Green Move, Happy Move, Dream Move, and Next Move. By doing so, we are creating and expanding social values with a wide range of stakeholders. The Next Move among the Hyundai Motor Group’s 6 Moves refers to the area where we leverage our business expertise to create social value, and includes Hyundai Motor Company’s CSV initiatives Areas of CSV Activities IONIQ Forest Beautiful Hands Hyundai Green Zone Project Cha-Car-Cha-Car Playground Looking for Three-Leafed Clovers H-Social Creator Vision Drive Hope Engine Science Class H-Junior Orchestra Future Automobile School Brilliant Kids Motor Show Project to support drinking water in Philippines Preservation of Petra World Heritage Site Staff Volunteer Corps Hyundai Dream Center Happy House H-Self Sharing Planner Sponsorship of the Korean Archery Association Support for a social enterprise, Easy Move Inc. Happy Dream Car, Happy Dream Bus Areas of CSV Activities Eco-friendly Develop eco-friendly products, recycle resources, and other activities to reduce environmental pollution Mobility innovation Provide solutions to individuals and sectors that do not have access to mobility and isolated regions Traffic safety Develop new safety technologies and activities to prevent traffic accident and support traffic accident victims and their families Future generation Provide opportunities for the
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rs that do not have access to mobility and isolated regions Traffic safety Develop new safety technologies and activities to prevent traffic accident and support traffic accident victims and their families Future generation Provide opportunities for the growth of future generation – children, teens, and youth – and support them Community Provide support and engage in collaborative activities based on the needs of local communities, including NGOs and our partner companies Traffic Safety Campaign with Robocar Poli Traffic Accident Zero for Children Campaign Driving Plus Project to improve residential environment in Chile OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <91 END>
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<START 92> IONIQ Forest Since 2016, Hyundai has been carrying out the IONIQ Forest project together with Tree Planet and SUDOKWON Landfill Site Management Corp. The project involves planting trees to reduce fine dust at the Incheon metropolitan landfill site. The IONIQ Forest project aims to create ‘fine dust-preventing forests’ by planting over 30,000 trees by 2020 together with forest-building experts, IONIQ customers, and participants of the IONIQ Longest Run. In 2018, 1,000 trees were planted in April by tree-planting volunteers. In addition, volunteers and 200 customers who participated in the IONIQ Longest Run together planted 2,000 zelkova and pine trees in November. Including an additional 5,000 trees planted by forest experts, a total of 8,000 trees were planted during the year. As of April 2019, a total of 15,250 trees have been planted through the IONIQ Forest project. Furthermore, IONIQ Forest project has established its own website and also produced documentary videos of the project’s progress as a way to communicate via various channels, how eco-friendly initiatives are transforming the landfill site into a forest of life. Beautiful Hands Hyundai contributes to reviving old, dilapidated urban areas in Seoul by creating mural paintings and improving public parks. This project has been carried out twice a year since 2014. In 2018, we created mural paintings on a pier in the south part of the Mapo Bridge in Han River Park, Yeouido-dong, Yeongdeungpo-gu, to raise the awareness of citizens about endangered birds and environmental protection. Around 120 employees of the Hyundai Customer Service Sub-Division and undergraduate PR Ambassadors from all across the nation made the old space new. They painted endangered birds that live in estuaries in Korea to communicate the message of environmental protection. In particular, emerging artists took part in creating the mural design, which made the mural painting go beyond urban environment
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ew. They painted endangered birds that live in estuaries in Korea to communicate the message of environmental protection. In particular, emerging artists took part in creating the mural design, which made the mural painting go beyond urban environment improvement and merit significance as a public artwork. Hyundai Green Zone Project The Hyundai Green Zone Project is a global ecological restoration project that Hyundai Motor Group has been carrying out since 2008. The 1st Hyundai Green Zone Project was carried out from 2008 through 2013, and covered 50 million square meters in Chakanor, Apakachi, Inner Mongolia, which is a leading source of fine dust in China. We successfully improved an alkaline salt desert into grasslands with abundant grass. Since 2014, we have been engaging in activities to restore 40,000 square meters of the Baoshaodainao Nur, Zhenglan Qi and Haginor regions into an ecology that is suitable for the climate environment of Inner Mongolia. Also, the Hyundai Motor Group’s Happy Move Global Youth Volunteers, colleges students in Beijing, employees and their family members of Hyundai and BHMC, a joint venture, and other participants are continuing volunteer activities to prevent desertification. Hyundai Motor Group has conducting a wide array of social contribution activities, in addition to the Hyundai Green Zone Project which we have been carrying out for over 10 years. In recognition of such efforts, Hyundai ranked first in the automotive industry in the ‘China Corporate Social Responsibility Index’ evaluation conducted by the China Academy of Social Sciences in November 2018. IONIQ Forest documentary video – Forest Ecological Value of IONIQ Forests Annual amount of CO2 absorbed 138,775 kg/year Annual amount of fine dust absorbed 544,425 g/year 9th Activities of ‘Beautiful Hands’ 092 Eco-friendly Develop eco-friendly products, recycle resources, and other activities to reduce environmental pollution Goal 13. Take urgent action to combat climate change and its impacts
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absorbed 544,425 g/year 9th Activities of ‘Beautiful Hands’ 092 Eco-friendly Develop eco-friendly products, recycle resources, and other activities to reduce environmental pollution Goal 13. Take urgent action to combat climate change and its impacts Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss * As of December 2018; based on 15,250 trees – a total number of trees which have been planted through the IONIQ Forest project ** Basis of calculation: On average, a 30-year old tree absorbs 9.1kg of CO2 per year; On average, a 40-year old tree absorbs 35.7g of fine dust per year; Anticipated effects after 30 years Goal 15.2 Goal 14.1 Goal 13.1 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <92 END>
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<START 93> Happy Dream Bus Since 2015, Hyundai has been operating the Happy Dream Bus project to help the mobility-impaired individuals go more places, providing them with opportunities to enjoy more diverse experiences in a bigger world. In particular, our Jeonju Plant has been donating funds for bus rental and traveling on 190 occasions to 131 organizations for four years since 2015. We will continue to impartially select and support various organizations to include all of the underprivileged. By doing so, we will go beyond guaranteeing mobility rights of the less fortunate and contribute to their happy lives and make more efforts to become a reliable means of transportation at all times to our communities. Easy Move Inc. Hyundai supports Easy Move Inc. which established in 2010 as a social enterprise. This corporation was funded by Hyundai in order to provide vehicle, mobility and assistance equipment for the disabled and the elderly. Easy Move is using exclusive technology to produce mobility assistance equipment, backed by the support from Hyundai. And it develops such products as electric wheelchairs that provide increased convenience than previous products. Hyundai makes an effort to provide better mobility to our communities who are experiencing transport inconvenience through products of Easy Move. Cha-Car-Cha-Car Playground Hyundai opened the Cha-Car-Cha-Car Playground in 2015 and operated it through 2018. The Playground is a car-themed amusement park in Seoul Grand Park that was established to celebrate the 30th anniversary of the launch of our Sonata brand in 2015. The Mini Sonata at the Playground was created using our independent technologies, and is designed in a way that enables even children with visual impairment to enjoy driving. There is also the Giant Sonata, a structure that children enjoy to play on, and such rest areas as the Animal Story Trail. The Cha-Car-Cha-Car Playground was the outcome of Hyundai’s efforts
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ables even children with visual impairment to enjoy driving. There is also the Giant Sonata, a structure that children enjoy to play on, and such rest areas as the Animal Story Trail. The Cha-Car-Cha-Car Playground was the outcome of Hyundai’s efforts to have both the disabled and non-disabled enjoy the Playground and to establish a space that provides an opportunity to experience various technologies that offer greater transport convenience. Happy Dream Car To provide mobility to such mobility-challenged people as the elderly and the disabled, Hyundai carries out the Happy Dream Car project by providing cars to welfare organizations and NGOs in areas where our business is based, including Ulsan, Asan, Jeonju, and Namyang. In particular, our Ulsan Plant has been steadily providing Happy Dream Cars over the past 14 years, bringing the total number to 170 cars as of the end of 2018. The Asan Plant and Jeonju Plant are also regularly donating car purchase funds. The Namyang Technology Research Center has developed an application for welfare organization users to apply for and use Happy Dream Cars. The project does more than providing transportation: it delivers lunch boxes, provides an emergency relief service, takes part in cultural and welfare activities in nearby areas, thereby helping the underprivileged feel less marginalized. Support by business site (Unit: Vehicle; Accumulated figures) Business site Since Happy Dream Car Happy Dream Bus Ulsan Plant 2005 170 247 Asan Plant 2009 13 - Jeonju Plant 2015 3 190 Namyang Technology Research Center 2011 14 40 Total 200 477 093 Happy Dream Car, Happy Dream Bus Support (As of 2018 year-end) Happy Dream Cars 200 Happy Dream Buses 477 Mobility innovation Provide solutions to individuals and sectors that do not have access to mobility and isolated regions Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10. Reduce inequality within and among countries Goal 11.
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als and sectors that do not have access to mobility and isolated regions Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10. Reduce inequality within and among countries Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable Goal 11.2 Goal 10.2 Goal 9.1 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <93 END>
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<START 94> Traffic Safety Campaign with Robocar Poli We are running a child traffic accident prevention campaign featuring the popular cartoon character Robocar Poli. The traffic safety animation series is aired in 82 countries across the globe. We also run various education programs in which parents and their children together can participate. Traffic Safety Class was participated by about 10,000 people in three cities in Korea in 2018. Our domestic and overseas sales branches have in place Hyundai Poli Traffic Safety Playground (30,000 visitors a year in Korea) and ‘Poli Kids Zone’ (six locations in China and Taiwan). We will continue to improve content and operation methods so that the future leaders of our societies can dream of a safer future with a better awareness of traffic safety. Traffic Accident Zero for Children Campaign Hyundai is running the Traffic Accident Zero for Children Campaign aimed at preventing traffic accidents while children are route to and from school by providing safer school vehicles. This campaign began in 2016, when Hyundai, the Citizens Coalition for Safety, and a technology cooperation partner together donated to childcare centers with commuter vehicles installed with an array of safety technologies. We are continuing the campaign to reduce traffic accidents involving children on the way to and from school. In 2018, we donated 14 commuter vehicles installed with new safety technologies, including the Sleeping Child Check System, and helped 50 organizations install safety features, achieving the annual goal of making an annual 1 million km of school roads safer (a total of 2 million km from 2016 to 2018). Through this campaign, we are engaging in other diverse efforts, such as distributing a campaign video (cumulative views: 200,000) to improve citizens’ understanding of traffic laws concerning children on the way to and from school, and generating ideas to improve the safety and convenience of commuter vehicles for children.
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istributing a campaign video (cumulative views: 200,000) to improve citizens’ understanding of traffic laws concerning children on the way to and from school, and generating ideas to improve the safety and convenience of commuter vehicles for children. Sample screen of educational material – occurrence of traffic accident 094 Traffic safety Develop new safety technologies and activities to prevent traffic accident and support traffic accident victims and their families Driving Plus In February 2019, Hyundai launched a virtual driving-related social contribution program aimed at helping inexperienced drivers overcome their fear of driving and develop a sense confidence in their driving. ‘Driving Plus’, developed for drivers who have a fear of driving or find driving difficult, uses a one-ton truck equipped with a mobile simulator to train drivers on how to drive defensively in various traffic situations, and at the same time, introduce them to Hyundai’s safety technologies. Driving Plus brings the truck to drivers or groups who have applied for the program. We plan to provide continuous training to drivers who have been involved traffic accidents to help them overcome their trauma. Through the Driving Plus program, we seek to help novice drivers improve their driving skills and thus prevent traffic accidents as well as help accident-shocked drivers regain their confidence in driving. By doing so, we are spreading a happy driving culture throughout society. Visiting ‘Driving Plus’ Program 1 Visiting ‘Driving Plus’ Program 2 H-Restore Hyundai is carrying out the H-Restore project by converging our maintenance capability with social contribution activities. For customers who own old Hyundai vehicles and who are experiencing financial difficulty, we restore the vehicle exterior and provide maintenance services, thus providing a helping hand to customers in the local community who are experiencing difficulty with vehicle maintenance. In
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ai vehicles and who are experiencing financial difficulty, we restore the vehicle exterior and provide maintenance services, thus providing a helping hand to customers in the local community who are experiencing difficulty with vehicle maintenance. In 2018, 13 professional mechanics of Hyundai participated as members of the H-Restore Dream Team. After receiving applications containing customers’ stories, we chose a 2007 Elantra (Avante) HD and 2003 Santa Fe SM and carried out metal plate painting and maintenance. Through these activities, we encourage our employees to use their talent for social contributions, while increasing the value of our customers’ vehicle. H-Restore – the Porter H-Restore – the Azera (Grandeur) Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable Goal 3. Ensure healthy lives and promote well-being for all at all ages Goal 3.6 Goal 11.2 Goal 4.7 Traffic Accident Zero for Children Campaign Hyundai Poli Traffic Safety Playground OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <94 END>
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<START 95> Looking for Three-Leafed Clovers The Looking for Three-Leaf Clovers is a program in which college students provide one-on-one career mentoring to children from families that have been affected by traffic accidents. In 2018, the program was offered to 80 teenagers from families afflicted by traffic accidents. Launched in 2005, this program was initially a donation project and later developed into career mentoring by undergraduates. Support has been provided to a cumulative number of around 1,620 teenagers. Through this program, children afflicted by a traffic accident have been given an opportunity to explore their career options and received emotional support, while college students performed roles as mentors and sponsors to the teenagers, thus experiencing the joy of sharing their talents. We will continue to make efforts to provide growth opportunities to teenagers traumatized by traffic accidents, and faithfully carry out social responsibilities related to traffic safety. H-Social Creator Since 2015, Hyundai has been organizing the H-Social Creator, an innovation program developed to help college students resolve social issues related to the environment, traffic safety, and culture and art. The program caters to undergraduate students (annually, 30 persons; cumulatively, 110 persons) interested in CSR and social issues, and supports development of CSV ideas that lead to social innovation, through a basic workshop, design camp, and employee mentoring. It duration of the program is six months, starting in June each year, and since 2017, the program has been organized with ‘H-Ombudsman’. The focus for 2018 was on strengthening the feasibility of ideas and on solving various social issues by applying the Hackathon method during the design camp. We also created a promotional video in the form of a short drama titled, ‘Youth, and the Beginning’, and distributed it through diverse social media channels. We have discovered six
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ocial issues by applying the Hackathon method during the design camp. We also created a promotional video in the form of a short drama titled, ‘Youth, and the Beginning’, and distributed it through diverse social media channels. We have discovered six CSV ideas every year (cumulative 24) by encouraging participation among young social innovators with original ideas. We will continue to support their growth and share our thoughts about creating a positive social impact. Vision Drive Hyundai’s Namyang Technology Research Center is carrying out the Vision Drive project, which uses the professional knowledge of outstanding R&D personnel to provide education opportunities to teenagers in local communities. In September 2018, R&D employees visited nearby schools as a volunteer teacher to share their knowledge and experience in various research areas related to automobile, engineering, and design. In addition, around 1,300 students were invited from a nearby middle school to take a tour of Motorstudio Goyang and attend a lecture. Through Vision Drive activities, we educate students on professional areas, such as automotive research and manufacturing processes, to increase their understanding of the automotive industry and provide information on future career paths. Hope Engine Science Class To encourage local children to take a bigger interest in engineering, Hyundai carried out the Hope Engine Science Class program. From March through December 2018, employees at Hyundai’s Asan Plant and a local volunteer group of undergraduates visited six elementary schools in the Asan area and six local children’s centers in the Cheonan area once a month to donate their talents using an advanced science kit. Through Hope Engine Science Class, we aim to help children better understand scientific principles, and discover and foster gifted children in science through a creative approach. We will continue to offer diverse learning opportunities to empower children to discover, develop and grow their
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to help children better understand scientific principles, and discover and foster gifted children in science through a creative approach. We will continue to offer diverse learning opportunities to empower children to discover, develop and grow their talent to tackle future challenges, and promote technology and science among future generation. Future Automobile School Hyundai operates the Future Automobile School for teenagers. Launched in 2016, the Future Automobile School is a special career education program under the free semester system for middle school students in Korea. It offers theory, experience, and practical training to increase understanding about the automobile industry, which in turn enables students to explore automobile-related jobs. In 2018, we strengthened content on hydrogen energy and future cities to enhance understanding of the future automotive industry. To remove inequality in career education opportunities, this program is offered with priority to students from rural areas (mountain village and fishing village schools) and those from special schools for the disabled. Starting in 2019, we are expanding the scope to include eight Asian countries that are the subject of multicultural families, including Vietnam and Thailand, in addition to Korea, in connection with the Ministry of Education. By doing so, we will contribute to global teenagers’ exploration of changes in the future automotive industry and career paths. H-Junior Orchestra Hyundai’s Namyang Technology Research Center runs an orchestra program for marginalized children lacking in education opportunity. The H-Junior Orchestra program recruits around 70 children, provides them with musical instruments, including violin, cello, flute, and clarinet, provides a weekly performance education, and holds an annual concert. Annual concerts were held in January in 2018, and in June in 2019. By providing cultural and art activitiesç in which underprivileged children
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ng violin, cello, flute, and clarinet, provides a weekly performance education, and holds an annual concert. Annual concerts were held in January in 2018, and in June in 2019. By providing cultural and art activitiesç in which underprivileged children cannot easily engage, we actively seek to support their creative and artistic development. Brilliant Kids Motor Show Hyundai hosted the 3rd Brilliant Kids Motor Show at the Gwacheon National Science Museum and Busan National Science Museum. The Kids Motor Show is an exhibition that selects children’s drawings of cars, which are based on their dreams, and turns them into real models, which are then displayed for the audience to directly experience. This year, seven drawings were chosen after carefully handling the approximately 20,000 entries that were submitted. By installing kiosks that enabled customers to interact with the works, we established an arena where we were able to take a step closer to the audience. We also exhibited how our eco-friendly vehicle, the NEXO, works at the Gwacheon National Science Museum to promote interest in and understanding of eco- friendly mobility among children as well as their parents. 095 Looking for Three-Leafed Clovers Website Brilliant Kids Motor Show Website H-Social Creator Short Drama titled ‘Youth, and the Beginning’ H-Social Creator ‒ Social Innovation Program by College Students Future generation Provide opportunities for the growth of future generation – children, teens, and youth – and support them Goal 10. Reduce inequality within and among countries Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Goal 4.a Goal 8.3 Goal 10.2 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities
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and promote lifelong learning opportunities for all Goal 4.a Goal 8.3 Goal 10.2 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <95 END>
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<START 96> Support for preserving the Petra World Heritage Site Petra is an ancient historical site that has been a UNESCO World Heritage Site since 1985. One of ‘New Seven Wonders of the World’, Petra is attracting a keen interest from many people around the world. Together with the local government agency in charge of the site, Hyundai has devised a three-year action plan running through 2020 from 2018, and is implementing it to preserve the Petra region, which attracts around 1 million tourists a year, and to promote the local economy. In 2018, the first year of the plan, we made such improvements to render the site more tourist-friendly by setting up free Wi-Fi service, better sign posts, outdoor ad installations, an information app and map, and a scale model of the site created by 3D printing. In the second year, we plan to develop a tour route using eco-friendly electric buses, and in the third year, promote the economy by developing infrastructure and improve amenities of the local community. We recognize the importance of cultural heritages we hand down to our future generations and will cooperate with all stakeholders to preserve their value. Staff Volunteer Corps Hyundai supports 131 staff volunteer corps, one for each of its business sites, as a way to promote volunteer activity among employees. Among these corps, of note is the weekday volunteer corps of 970 technical staff at the Ulsan Plant carrying out talent donations for the marginalized. The Asan Plant also organizes a volunteer group comprised of employee wives conducting social contribution activities for senior citizens in the local community. Hyundai employees are giving a helping hand to underprivileged neighbors by planning and executing volunteer activities that reflect the characteristics of their business site. In 2018, around 17,900 employees participated in the volunteer activities and recorded a combined 59,500 hours. We will continue to engage in activities that leverage
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cuting volunteer activities that reflect the characteristics of their business site. In 2018, around 17,900 employees participated in the volunteer activities and recorded a combined 59,500 hours. We will continue to engage in activities that leverage employee talents for people who need a helping hand. Hyundai Dream Center Hyundai operates the Hyundai Dream Center, a vocational program to help young people in developing nations develop technical skills. Hyundai Dream Center is a project that we carry out in cooperation with Plan International Korea, and a venue through which we provide our advanced automobile maintenance skills to developing countries. The first Hyundai Dream Center was opened in Ghana in 2013, followed by those in Indonesia, Cambodia, and Vietnam. The Hyundai Dream Center in the Philippines, opened in 2018, provides technical education to around 90 youths annually. Recently, 78 outstanding students found a job at local Hyundai dealers. We opened our 6th Hyundai Dream Center in Peru in April 2019, accepting 63 local young people (43 male, 20 female) from low-income families having difficulties in finding a quality job, and plan to provide a quality education on various subjects for six semesters totaling three years. Through Hyundai Dream Center, we will support youths in developing nations in honing their talent and skills. Happy House Our Happy House project provides daily necessities to the low-income class who are in the blind spot of the welfare system and helps improve their residential environment. Together with the Hwaseong City Social Welfare Council, Hyundai’s Namyang Technology Research Center recruited beneficiaries residing in Hwaseong City, and identified the needs of beneficiaries and, accordingly, repaired heating boilers and water leaks. We will continue to take interest in the lives of the underprivileged and provide full support for a better life. H-Local Partner H-Local Partner is a program through which Hyundai employees and
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d, accordingly, repaired heating boilers and water leaks. We will continue to take interest in the lives of the underprivileged and provide full support for a better life. H-Local Partner H-Local Partner is a program through which Hyundai employees and citizens form a volunteer council and provide support for marginalized individuals who are in the blind spot of welfare systems. Together with local residents of eight neighborhoods that have sisterhood ties with our business site volunteer corps, we regularly carry out volunteer activities for the low- income class beyond the reach of government assistance. In 2018, around 900 members carried out a wide variety of activities closely connected to local communities, such as delivering food on more than 20 occasions, providing taxi support for seniors, providing breakfasts to children, offering support for local schools’ graduation ceremonies, providing support for events for seniors, and improving the residential environment. We will continue to help employees and local communities plan diverse activities for the underprivileged and contribute to facilitating exchange among local residents. H‒Self Sharing Planner H-Self Sharing Planner program is designed to encourage staff to voluntarily plan and execute their volunteer activities. Volunteer targets and periods were set for previous volunteer activities, making it difficult for employee ideas to be reflected. In contrast, the H-Self Sharing Planner enables self- directed volunteer activities since volunteer activities are based on voluntary planning by staff. In 2018, the creative planning of staff led to volunteer activities on 800 occasions in a total of 10 areas. These included carrying out various leisure activities with local children, such as confectionery, bakery, and art, and volunteer activities that supported elementary school students’ ‘car maker’ hobby activities. Sponsorship of the Korean Archery Association Hyundai has been sponsoring the Korean Archery Association since 1985.
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h as confectionery, bakery, and art, and volunteer activities that supported elementary school students’ ‘car maker’ hobby activities. Sponsorship of the Korean Archery Association Hyundai has been sponsoring the Korean Archery Association since 1985. Our research institute’s technological knowhow was used to develop a shooting machine that filters defective arrows. Precision analytical technique was applied to identify irregularities in parts. By doing so, we are supporting archers honing their skills and helping them improve their performance. In addition, we are promoting the sport by sponsoring leading archery tournaments, including the Archery World Cup and the World Archery Championships. Three-year Action Plan for Preserving the Petra World Heritage Site Information map for tourists available in 10 languages Log-in screen for free Wi-Fi service Go Petra App available in five languages 2018 Bring improvements at the site through free Wi-Fi service, better sign posts, an information app, etc. 2019 Develop a tour route, and operate eco-friendly electric buses 2020 Promote the regional economy, and develop capabilities 096 Community Provide support and engage in collaborative activities based on the needs of local communities, including NGOs and our partner companies Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development Goal 12. Ensure sustainable consumption and production patterns Goal 1. End poverty in all its forms everywhere Goal 1.5 Goal 12.b Goal 17.17 OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <96 END>
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<START 97> Global CSV Activities Eco-friendly Mobility innovation Future generation Traffic safety Community Areas of CSV Activities Key Activities in North America Hope on Wheels Hyundai Motor America (HMA) has been organizing the Hope on Wheels campaign with Hyundai dealers since 1998. This campaign supports pediatric cancer research and aims for a future where no children will be suffering from cancer. It has expanded across the U.S., with HMA and all of our local dealers participating in the campaign. In 2019, we plan to donate USD 160,000 under the theme, “Minutes are Precious”. Key Activities in Europe ECO Parking Hyundai Motor Espana, S.L. (HMES) took an innovative approach in response to a growing call for reduction of plastics in the ocean by introducing the ECO Parking machines. HMES installed a machine in coastal parking lots to take plastic waste as a payment for parking. The scheme induces road travelers to empty plastic cans in their vehicle or to pick up plastic trash nearby, encouraging people to participate in activities to protect the environment. Through the ECO Parking, we plan to increase the possibilities of recycling plastics and promote the importance of protecting marine ecosystems. HAOS Hyundai Assan Otomotiv Sanayi • Support educational activities for underprivileged students and provide scholarship • Sponsor the Police Forces Support Foundation in Turkey (family members of police officers who were injured or died in the line of duty) Major Activities by Subsidiary 097 Responsible global corporate citizen Hyundai’s global operations were reorganized by region in 2018 and we are making fundamental improvements in line with this change. We are also changing our CSV focus from country to region-centered. Our plan for 2019 is to establish
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al corporate citizen Hyundai’s global operations were reorganized by region in 2018 and we are making fundamental improvements in line with this change. We are also changing our CSV focus from country to region-centered. Our plan for 2019 is to establish a mid- to long-term CSV strategy direction and support system for each region, and thus establish the foundation for a systematic global CSV activity system to faithfully perform our roles and responsibilities as a global corporate citizen. • Support pediatric cancer research, and help treatment of pediatric cancer: Hyundai Hope on Wheels Grants Program • Sponsor human rights organizations and related events: NAACP, CBCF, CHCI, TELACU, Women’s Empowerment Expo, etc. • Host a multinational festival: Hyundai Cultural Heritage Celebration HMA Hyundai Motor America • ‘Granting Wishes’ campaign for pediatric patients with an incurable illness, participated by dealers: Children’s Wish • Donations participated by HAC and its dealers: Boys and Girls Clubs of Canada, HACC Gives Back HAC Hyundai Auto Canada Major Activities by Subsidiary HMMA Hyundai Motor Manufacturing Alabama • Organize a fund-raising campaign by employees: United Ways of Alabama • Support local art fairs and exhibitions: Alabama Shakespeare Festival, Montgomery Museum of Arts, etc. • Protect biodiversity: Montgomery Area Zoological Society • IONIQ customer-participated eco-friendly donation activities HMCI Hyundai Motor Company Italy • Provide financial support for underprivileged children, and support volunteer organization with vehicles: SOS Children Villages HMCZ Hyundai Motor Czech • Sponsor an organization for social integration through sports education: Sport dans la Ville HMF Hyundai Motor France • Run local community development and eco-friendly programs: Hyundai Endowment Fund, HMMC Grants • Sponsor the hydrogen-powered RC national championship for middle school students (Horizon Grand Prix) HMMC Hyundai Motor Manufacturing Czech
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or France • Run local community development and eco-friendly programs: Hyundai Endowment Fund, HMMC Grants • Sponsor the hydrogen-powered RC national championship for middle school students (Horizon Grand Prix) HMMC Hyundai Motor Manufacturing Czech • Sponsor the parents association to fight cancer: Cancer Organisation HMSK Hyundai Motor Slovakia • Sponsor a fund-raising campaign in partnership with Cancer Research UK: Stand Up To Cancer HMUK Hyundai Motor United Kingdom, Ltd. OUR SYSTEM OUR VALUE 4.4 Customer 4.5 Environment 4.6 Collaboration 4.6 People 4.8 Community 4. SUSTAINABILITY PERFORMANCE • Areas of CSV Activities • Global CSV Activities • Supporting Arts and Culture 5. APPENDICES <97 END>
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<START 98> Key Activities in India Dream Village Project Hyundai Motor India (HMI)’s Dream Village project is aimed at improving the village environment in India and helping local residents increase their participations in the economy. In 2018, improvements were made to the environment and infrastructure of the Kattrambakkam Village in India, and support was provided in the area of employment, stock raising, health, and education for a better life of local residents. Key Activities in Russia Safe Road Traffic Safety Program Hyundai Motor Commonwealth Independent States (HMCIS) is providing a traffic safety education to customers and members of local communities. The education is held in various cities, including Moscow, Saint Petersburg, and Leningrad. Separately, a contest is organized to develop creative traffic safety education methods. Also, through the ‘Safe Road’ program, information is shared with preschool children and parents on safe conducts on the road. 098 Eco-friendly Mobility innovation Future generation Traffic safety Community Areas of CSV Activities Major Activities by Subsidiary • Operate a traffic safety campaign in partnership with local police (traffic cameras, traffic safety for pedestrians, distribution of educational books, etc.) • Help Kattrambakkam Village increase its self-reliance through local business, health, educational, and environmental infrastructure • Support natural disaster relief efforts for restoration from damage caused during the Indian monsoon season HMI Hyundai Motor India Major Activities by Subsidiary • Organize a cultural experience program participated by young generation: Great Music for Young Generation • Invite Hyundai customers and employees’ families for a traffic safety program: Hyundai Safe Road Traffic Safety HMCIS Hyundai Motor Commonwealth Independent States • Employee volunteering and donations in cities outside the area where HMMR is located: Hyundai Dream Way • Support professional job trainings (equipment, employee
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