In line with the extension of management functions, it also plays a role of preliminary review such as safety and health plans
[투데이에너지 송명규 기자] ESG management such as Hyundai Motor Company, Kia, and Hyundai Mobis expanded and reorganized the’Transparent Management Committee’ within the Board of Directors into the’Sustainability Management Committee’, and the Committee decided to deliberate and decide on ESG (Environment, Social, Governance) policies and activities. Speed up the system
It is a dimension of willingness to further strengthen execution capabilities along with ESG response and management capabilities by entrusting discussions on environment and social responsibility 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 upgrade the ESG management system by adding the authority to make decisions 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 transparent management committee role, the Sustainability Management Committee will have additional powers to deliberate and decide on the company’s EGS policies and plans, and major activities by expanding the scope of agenda discussion to the ESG field.
Hyundai Motor Company, Kia, and Hyundai Mobis expect that the Sustainability Management Committee will 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.
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 car technology at the ‘2020 Sustainability Management Contribution Government Award’ hosted by the Ministry of Trade, Industry and Energy.
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 decision function.
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 establishment of the ESG management system.” said.
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