Hyundai Motor Company, Kia, and Hyundai Mobis are accelerating the ESG management system by expanding and reorganizing the “Transparent Management Committee” within the BOD to the “Sustainability Management Committee” and deliberating and deciding on ESG policies and activities in the committee. It is a dimension of willingness to further strengthen execution capabilities along with ESG response and management capabilities by entrusting discussions on responsibilities to the highest decision-making body in the company.
In the announcement of the convocation of the general shareholders’ meeting on the 18th, Hyundai Mobis proposed an agenda to change the articles of incorporation to reorganize the existing’Transparent Management Committee’ into the’Sustainability Management Committee’. Hyundai Mobis explained that it plans to enhance the ESG management system by adding the decision-making authority related to ESG to the newly reorganized’Sustainability Management Committee’.
Hyundai Motor Company and Kia also plan to go through the board of directors in the near future to finalize and disclose the agenda to amend the articles of incorporation. Each of the three companies, including Hyundai Motor Company, has established a’Transparent Management Committee’ consisting only of outside directors within the board of directors to enhance shareholder value and strengthen shareholder communication by securing internal transaction transparency, protecting shareholder rights, and reviewing large-scale investments since 2015.
In addition to the existing role of the’Transparent Management Committee’, the’Sustainability Management Committee’ expands the scope of agenda discussions in the ESG field to additionally have the authority to deliberate and decide on the company’s EGS policies, plans, and major activities.
Hyundai Motor Company, Kia, and Hyundai Mobis expect the’Sustainability Management Committee’ to play the role of a practical control tower for ESG management in the future. ESG is an essential element of a company’s survival, and it is becoming a major factor in evaluating the value of a company by consumers and investors.
Three companies, including Hyundai Motor Company, are concentrating on securing sustainable future values under the group’s vision of’companion for a better future’. While focusing on the development of eco-friendly vehicles such as electric vehicles and hydrogen electric vehicles, it is also actively engaged in win-win and shareholder-friendly management with business partners.
Recently, Hyundai Motor Company successfully issued an ESG bond worth 400 billion won, and Kia is also considering issuing ESG bonds. The funds raised through ESG bonds will be used for investment in the development of electric and hydrogen electric vehicles, as well as the development and sales of new eco-friendly vehicles.
There is also a positive evaluation of the ESG activities of Hyundai Motor Company, Kia and Mobis. In the ESG rating for each major company announced by the Korea Corporate Governance Service in October last year, all three companies, including Hyundai Motors, obtained A grade. Hyundai Motor Company and Kia were upgraded from B+ grade last year to A grade, and Hyundai Mobis maintained the same A grade as last year.
The’Sustainability Management Committee’ of Hyundai Motor Company, Kia, and Hyundai Mobis will also have the authority to review the company’s safety and health plans in line with the ESG deliberation and resolution functions. According to the revised Occupational Safety and Health Act, companies of a certain size or larger must establish a safety and health plan every year from this year, report to the board of directors, and obtain approval.
The’Sustainability Management Committee’, consisting only of outside directors, reviews the established safety and health plan in advance, examines the effectiveness and appropriateness from a more objective perspective, and presents opinions on revisions and supplements. Through this, it is expected that more precise decision-making on industrial safety will be possible during the approval process of the board of directors.
An official of the Hyundai Motor Group said, “We will contribute to humanity and create sustainable future values through the establishment of the ESG management system.” “We will strive to become a company loved by the market and society by working together with all executives and employees, led by the board of directors.” .
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