Expanded and reorganized the existing Transparent Management Committee to Sustainability Management Committee… Safety and health plan review
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Hyundai Motor Group plans to speed up ESG management by giving the board of directors the authority to deliberate and vote on ESG-related policies.
It is interpreted as the purpose of strengthening ESG response and management capabilities and execution by entrusting discussions on the environment and social responsibility to the highest decision-making body in the company.
According to the Hyundai Motor Group on the 19th, Hyundai Mobis proposed an agenda to change the articles of incorporation to reorganize the existing Transparent Management Committee into the Sustainability Management Committee in the announcement of the convocation of the shareholders’ meeting the day before.
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 these three companies 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 interests, and reviewing large-scale investments, respectively, since 2015.
In addition to the role of the existing Transparent Management Committee, the newly reorganized Sustainability Management Committee will have additional authority to deliberate and decide on the company’s ESG policies, plans, and major activities by expanding the scope of agenda discussion to the ESG field.
The new committee will also consist of only outside directors, and will have the authority to review the company’s health and safety plans.
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 committee will review the established safety and health plan in advance, evaluate its effectiveness and adequacy from an objective perspective, and present opinions on revision and supplementation.
This is expected to enable precise decision-making on industrial safety during the approval process of the board of directors.
Three companies, including Hyundai Motors, expect the new committee to play a role as a practical control tower for ESG management in the future.
ESG is already an essential element for a company’s survival and is a major factor in evaluating the value of a company by consumers and investors.
In the midst of this, Hyundai Motor Group is concentrating on developing eco-friendly vehicles such as electric vehicles and hydrogen electric vehicles under the vision of’companion for a better future’, while actively pursuing win-win and shareholder-friendly management with suppliers.
Recently, Hyundai Motor Company successfully issued 400 billion won worth of ESG bonds, and Kia is also considering issuing ESG bonds. The funds raised through ESG bonds will be used for investment in the development of electric vehicles and hydrogen electric vehicles, as well as the development and sales of new eco-friendly vehicles.
In the ESG rating evaluation for each major company announced by the Korea Corporate Governance Service in October last year, all three companies obtained A grade, and positive evaluations of ESG activities are also continuing. 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.
In December of last year, Hyundai Mobis received the Prime Minister’s Award in recognition of its support from suppliers and achievements in developing eco-friendly vehicle technology at the ‘2020 Sustainability Management Contribution Government Award’ hosted by the Ministry of Trade, Industry and Energy.
An official of the Hyundai Motor Group said, “We will establish an ESG management system to contribute to humanity and create sustainable future values.” said.
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