Hyundai Motor Company headquarters in Yangjae-dong, Seocho-gu, Seoul./ Photo = News 1
Hyundai Motor Company, Kia, and Hyundai Mobis announced on the 19th that the’Transparent Management Committee’ within the Board of Directors will be expanded and reorganized to the’Sustainability Management Committee’, and that the Committee will deliberate and decide on ESG (environmental, social, governance) policies and activities.
In the announcement of the convening of the general shareholders’ meeting the day before, Hyundai Mobis proposed an agenda to change the articles of incorporation to reorganize the existing’Transparent Management Committee’ into’Sustainability Management Committee’.
Hyundai Mobis explained, “We plan to enhance the ESG management system by adding ESG-related decision-making authority to the newly reorganized’Sustainability Management Committee’.”
Hyundai Motor Company and Kia are also planning to go through the board of directors soon to determine and disclose the agenda to amend the articles of incorporation to this effect.
Earlier, the three companies, including Hyundai Motors, 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, respectively, after 2015.
The’Sustainability Management Committee’ will additionally have the authority to deliberate and decide on the company’s EGS policies and plans, and major activities by expanding the scope of discussion on agenda to the ESG field as well as the role of the existing’Transparent Management Committee’.
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. This is because ESG is an essential element for a company’s survival, and it is becoming a major factor in evaluating the value of a company by consumers and investors.
An official from Hyundai Motor Group said, “We will contribute to humanity and create sustainable future values through the establishment of the ESG management system.”
Shin Hyun-ah, Hankyung.com reporter [email protected]
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