Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change Response
• Resource Circulation
• Expansion of Eco-friendly Products and Technologies
• Responsible Supply Chain Management
• Safety and Health
• Human Rights Management

Environmental Achievements

• Reduction rate of greenhouse gas intensity in 2023 compared to the previous year 4.78%
• Reduction rate of water usage in 2023 compared to the previous year 13.64%
• Total number of product recalls in 2023 0 case
• Percentage of new partners evaluated according to 2023 ESG CSR criteria New: 63% Permanent: 100%

Social Achievements

• Achieved 100% complaint resolution rate for 107 customer complaints
• Achieved 100% improvement rate for 156 areas requiring improvement in safety inspections
• Human Rights Complaint Resolution Performance in 2023: 100% improvement rate for 9 cases
• Total voluntary turnover rate in 2023: 13.3%

Governance Achievements

• Strengthened the board's expertise and diversity by appointing an independent director with extensive experience in the global technology sector in March 2022
• 100% attendance rate of all directors in 12 board meetings in 2023
• Received conformity assessment across all aspects of Hyundai Motor Group's security certification (HMG-ISMS:2021)

Climate Goals & Targets

Environmental Challenges

• Increasing uncertainty regarding climate change response investments due to ongoing and potential regulatory enhancements or changes at home and abroad
• Inadequate management of environmental impact levels could adversely affect local communities, potentially leading to conflicts
• Lapses in product quality and safety management can lead to accidents, lawsuits, recalls, and damage to our reputation and brand value
• Inadequate management of ESG risks in the supply chain can lead to product defects or legal issues, potentially reducing investment opportunities and market competitiveness

Mitigation Strategies

• Empowered C-level executives with decision-making authority and responsibility regarding climate change issues
• Implemented and adhere to established procedural guidelines and conduct regular environmental impact assessments
• Established a dedicated environmental management policy in 2024 and established an environmental management system based on ISO 14001 certification
• Established a quality management policy and built a quality management system based on ISO 9001 certification
• Include ESG criteria when selecting new partners and conduct regular ESG assessments targeting key partners
• Establish criteria related to social responsibility for our partners and proceed with contracts accordingly

Supply Chain Management

Supplier Audits: 63% of new partners and 100% of existing partners evaluated based on ESG CSR criteria in 2023

Responsible Procurement

• ESG criteria included in partner selection
• Regular ESG assessments of key partners
• Establishment of criteria related to social responsibility for partners
• Code of conduct for partners
• Annual CSR questionnaire to assess sustainability management level of partners

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as typhoons, floods, and heavy snow
• Changes in average temperature and precipitation

Transition Risks

• Regulations on sales of internal combustion engine vehicles
• Carbon Border Adjustment Mechanism (CBAM)

Opportunities

• Growing demand for eco-friendly vehicles
• Development of eco-friendly components

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Sustainable Products & Innovation

• ICB (Inter Connection Board)
• BDU(PRA)
• High-voltage connectors
• Charging connectors

Awards & Recognition

• GM 2022 Overdrive Special Award
• GM 2014 Supplier Quality Excellence Award
• GM 2019 Supplier Quality Excellence Award