Climate Change Data

Kia Corporation

Climate Impact & Sustainability Data (2021-01 to 2021-12, 2022-01 to 2022-12, 2023)

Reporting Period: 2021-01 to 2021-12, 2022-01 to 2022-12

Environmental Metrics

Total Carbon Emissions:1314.64 tCO2e/year (2022)
Scope 1 Emissions:290.44 tCO2e/year (2022)
Scope 2 Emissions:230.90 tCO2e/year (2022)
Scope 3 Emissions:793.31 tCO2e/year (2022)
Renewable Energy Share:0%
Waste Generated:0.20 tons/year (2022)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Increased the proportion of hybrid, plug-in hybrid and electric vehicles within the company fleet and Employee Car Ownership Scheme
  • Completed a comprehensive electric vehicle charging project at Head Office available to all employees and visitors
  • Regular and documented maintenance of HVAC systems to ensure no leaks

Social Achievements

  • Increased hybrid working to minimise business travel and commuting
  • Implementation of Emissions Monitoring System to track GHGs across Scopes 1-3
  • Car sharing among staff for commuting

Governance Achievements

  • ISO 14064-1 Verification
  • ISO 14001 Certification

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2045
Medium-term Goals:
  • Reduce emissions to 690.15 tCO2e by 2030
Short-term Goals:
  • Reduce emissions to 920.20 tCO2e by 2025

Environmental Challenges

  • Increased electricity consumption, business travel and upstream transportation
  • Increased volume of imported vehicles
Mitigation Strategies
  • Developing a Carbon Reduction Plan in line with PPN 06/21
  • Implementing further measures such as photovoltaic panels and instructions to suppliers
  • Gradual phase out of gas for heating purposes from operations

Supply Chain Management

Responsible Procurement
  • Instructions to suppliers (planned)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14064-1:2019, GHG Protocol, SECR, PPN 06/21 Carbon Reduction Plan

Certifications: ISO 14001

Third-party Assurance: BSI

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,130,900 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:354,000 tCO2e/year
Scope 2 Emissions:776,900 tCO2e/year
Scope 3 Emissions:99,498,189 tCO2e/year
Renewable Energy Share:9% in 2023
Total Energy Consumption:3,637,639 MWh/year
Water Consumption:6,343,388 m3/year
Waste Generated:231,938 tons/year
Carbon Intensity:0.41 tCO2e/unit in 2023

ESG Focus Areas

  • Climate Change
  • Resource Circulation
  • Employee Well-being
  • Supply Chain Sustainability
  • Customer Safety & Quality
  • Business Ethics

Environmental Achievements

  • Driving solar power at domestic and overseas AutoLand Hwaseong (4MW), and Kia India (2MW) completed in 2023
  • Promotion of securing renewable energy. Signing Korea’s Largest PPA Agreement (Introduction of a total of 219MW PPA by 2031)
  • Expanding the use of Recycled Plastic. Establishing enterprise governance for over 20% application in 2030 (Plastic Recycling Council)
  • Partnership with Ocean Cleanup for marine plastic collection and recycling

Social Achievements

  • Supporting future competitiveness of suppliers. Funding including R&D investment, Established an organization to support 2nd/3rd tier suppliers
  • Improving supplier ESG management. Conducting diagnostics for All 1st-tier suppliers and prioritized 2nd-tier suppliers, Establishing ESG compliance provisions in contracts
  • Reinforced safety and health at workplace. Secured ISO 45001 certification at all business sites, Expanding adoption of new safety technologies
  • Expanding Kia’s representative social contribution Green Light Project in 3 new countries, established Green Trip Jeonju base

Governance Achievements

  • Incorporating ESG into CEO performance evaluations. Organizing sustainability elements beyond business and finance (safety, culture, etc.)
  • Expanded diversity and independence of the Board of Directors (BoD). Over 50% independent directors, 60% female independent directors (As of 2024)
  • Enhanced shareholder-friendly policies. Dividend: 5,600 won per share (+60% YoY), Buyback: 500 billion won, 50% retired
  • Evaluation of the effectiveness of the compliance control standard. Conducting an evaluation of the effectiveness of the compliance control standard through external experts once a year

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2045
  • 100% electrification in global markets by 2045
Medium-term Goals:
  • Reach renewable energy conversion rate 100% in 2040 (12% in 2025, 66% in 2030, 82% in 2035)
  • Sell 2.48 million eco-friendly vehicles in 2030
  • Achieve RE100 in business sites (International 2030, domestic 2040)
  • 100% electrification of Europe and major markets by 2040
Short-term Goals:
  • Reduce water consumption by 10% by 2030
  • Reduce production plant energy use by 20%, enable full process automation excluding assembly by 2040
  • Achieve zero serious accidents in production lines and below 3.0 at suppliers by 2040
  • Utilize over 20% recycled plastic by 2030

Environmental Challenges

  • Rising prices of domestic emissions trading programs
  • Tighter emissions standards for ICE (internal combustion engines) Vehicle in Europe
  • Instability of supplying raw materials for electric vehicle batteries
  • Increasing demands for climate change disclosure
  • Acute Damage to business from extreme weather
  • Chronic Operational disruptions due to changes in average precipitation
  • Shortage of high-quality waste plastics
  • Technology risks of expanded use of IT
Mitigation Strategies
  • Participating in Korean emissions trading scheme
  • Expanding the global EV sales share
  • Expanding its battery supply capacity
  • Disclosing climate change information transparently
  • Establishing a proactive preparedness system in case of physical hazards
  • Developing water recycling technologies and improving facilities
  • Setting a goal of utilizing more than 20% recycled plastic by 2030
  • Investing in promising technologies

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • ESG assessments
  • Green purchasing
  • Capacity building programs
  • Financial support programs

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Changes in average precipitation
Transition Risks
  • Rising prices of emissions trading programs
  • Tighter emissions standards
  • Instability of battery raw material supply
  • Increased demands for climate change disclosure
Opportunities
  • Creating green businesses
  • Expanding EV market share

Reporting Standards

Frameworks Used: GRI Standards 2021, ESRS, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 9001

Third-party Assurance: Third-party assurance provider (name not specified in provided text)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • EV6
  • EV9
  • EV3 (with recycled materials)

Awards & Recognition

  • S&P Dow Jones Sustainability Indices ‘World’ Index for 2 consecutive years
  • GSMA Sustainability category for 6 consecutive years
  • CDP Korea Climate Change Won Carbon Management Sector Honors Award
  • Chosun Biz 2023 THE ESG AWARDS Grand Prize