現代汽車Hyundai Motor Company （HYMTF） 2021年可持續發展報告「OTC」.pdf

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1、Road toSustainability2021 Sustainability ReportIntroductionCEO MessageCompany Overview and Major AchievementsHyundais 2025 Strategy ElectricVehicles AutonomousDriving ConnectedCars Robots Mobility Hydrogen OpenInnovation SmartFactoriesESG Management ESGDirections ESGPerformanceGovernance 066BoardofD

2、irectorsEthicalandComplianceManagementRiskManagementESG Factbook 073AboutThisReportGlobalNetworkBusinessPerformanceFacts&FiguresGRIIndexTCFDIndexSASBIndexWEFIBCStakeholderCapitalismMetricsStakeholderEngagementSustainabilityManagementMaterialityAnalysisIndependentAssuranceStatementAssuranceStatementE

3、nvironmental 018EnvironmentalManagementCarbonReductionCircularEconomyManagementandReductionofHarmfulSubstancesSocial 033HumanRightsEmployeesSuppliersProductQualityCustomersCommunitiesThisreporthasbeenpublishedasaninteractivePDF,allowingreaderstomovequicklyandeasilytopagesinthereport,andincludingshor

4、tcutstotherelatedwebpages.ReferencePageRelatedLinkVideoClipContents1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook003Theeconomicoutlookfor2021,particularlyforthoseadvancedeconomies,onceappearedrosyonthebackofvaccinedevelopment.Butanumberofuncertaintiesintheglobalbusinessenvironmentar

5、eexpectedtopersist,rangingfromrecurringspikesincoronavirusinfectionstosupplybottlenecksinglobalautomotivesemiconductorproduction.Byfocusingonthefollowingstrategictasks,HyundaiMotortargetsnotonlyachievingitsbusinessgoals,butalsotransformingitselfintoaworld-leadingmobilitysolutionscompanyinthepost-cor

6、onavirusera.We will build a stronger foundation for growthHyundaiMotorwillexpandglobalsalesofhigh-marginmodelsfromGenesisaswellasvariousSUVmodels,whilereducingproductioncostsbyparingdownfixedcostsandexpandingtheapplicationofcommonmodularcomponents.Wewillalsocontinuouslystrengthenourdigital-basedinno

7、vationeffortsthroughouttheentirevaluechain.Inordertoelevatequalitycompetitivenessthefundamentalcapabilityofanyautomakerweareactivelycarryingoutqualityimprovementactivities,includingimplementingvehiclereplacementprograms,strengtheningreliability-baseddevelopmentqualitymanagement,andstandardizingquali

8、ty-controlprocessesforourecofriendlyvehicles.Throughtheseefforts,thecompanywillchannelallitscapabilitiesintosecuringthedeeptrustofourcustomers.Atthesametime,thecompanywilllaythegroundworkforitsreboundintheChinabusinessandcommercial-vehiclebusinessviaahostofinnovations.We will secure competitiveness

9、in our future growth businessesTosecurefuturebusinesscompetitivenessandleadershipinthecompetitiveglobalelectrifiedmobilitymarket,HyundaiMotorwilldrasticallystrengthenitselectrifiedvehiclelineup.Aspartofthistransition,thecompanysuccessfullylaunchedinApril2021itsfirstdedicatedEV,theIONIQ5,whichisequip

10、pedwithadedicatedEVplatform,theE-GMP(ElectricGlobalModularPlatform).WearealsostrivingconstantlytoprovidenewvaluetoourcustomersbyofferingspecializedEV-basedservicepackages.Onthehydrogenfront,wewillputspurstoourhydrogenbusinessbysecuringrelatedcoretechnologiesandexpandingourfuel-cellsystembusiness,the

11、rebybolsteringourinitiativeforafutureglobalhydrogensociety.Continuingtoexpandourinnovativeofferingsandservices,suchascommunitymobilityservicesthatservetheeverydayneedsofcustomers,isanotherobjectiveofoursforthefuture.We will change the way we work with our customersHyundaiMotorCompanyinlinewithitsvis

12、ionofbecomingaSmartMobilitySolutionProviderisintheprocessofestablishingnewworkstandardsthatwillhelpussmoothlytransitiontoourfuturerole.Wewillmaintainourmomentumofchangeonthebasisofemployeeautonomyandresponsibility,whileeliminatinginefficienciesinourmodusoperandi.Theaimistomoveinadirectionmoreoriente

13、dtowardservingandempoweringourcustomersallaroundtheworld.Inparticular,weplantostrengthenourcustomer-orientedqualitymanagementbyimprovingnotonly“productquality,”butalso“workquality”bytappingintoemployeescreativitiesandtalents.Inaddition,inresponsetotheneedsofvariousstakeholders,includingshareholdersa

14、ndinvestors,wewillnormalizeanESG-orientedmethodofoperation,bywhichallHyundaiMotoremployeeswouldadvancelong-termsustainablecorporatevalues overfinancialshort-termism.Jaehoon Chang,President and CEO“Progress for Humanity:Continuing our Unstoppable Challenge”CEO MessageIn2020,amidthehistoricdifficultie

15、sposedbytheCOVID-19pandemic,HyundaiMotorCompanycontinueditsquesttofacilitatehumanprogressunderitsperennialphilosophyofconsideringpeoplefirst.Asbothaglobalautomakerandmemberoflocalcommunitiesallaroundtheworld,thecompanysurmountednumerouschallengeswithitssteadfastspiritandinnovatedandchallengeditselfc

16、easelesslytoforgeasustainablenewfuture.2020wasayearinwhichthecompanyfirstimplementeditsmid-to-longtermgrowthplan,the“2025Strategy.”Onthebackofthetirelesseffortsofallitsemployeesandpartners,HyundaiMotorachievedamultitudeofmilestonesaroundtheglobe,andatthesametimeestablishedarobustfundamentforfreshgro

17、wthintothefuture.Asaresult,wemanagedtoincreaseourdomesticsalesby6.2percentandourglobalmarketshareto5.3percentfrom2019,risingabovetheglobalautomotiveindustrysslumpfromthepandemiclastyear.Intermsofproducts,thecompanysseventh-generationall-newElantracompactsedanwontheprestigious2021NorthAmericanCarofth

18、eYearawardbythedecisionoftheNorthAmericanCar,UtilityandTruckoftheYear(NACTOY)automotive-mediajury.ItwasthesecondtimeElantragrabbedtheNorthAmericanCaroftheYearawardsinceitsfirsthonorin2012.Meanwhile,theGenesisluxurybrandrankedfirstinboththeInitialQualityStudy(IQS)andVehicleDependabilityStudy(VDS)inth

19、eluxuryvehiclecategory,furtherenhancingitsreputationasapremiumautomotivebrand.Inaddition,thelaunchofthecompanysfirstEVbrandIONIQhelpedthecompanysecurethefourthtopspotinglobalecofriendlyvehiclesalesandcementitsplaceintheworldecofriendlymobilitymarket.Paralleltotheseadvances,thecompanyiscurrentlyleadi

20、ngtheestablishmentofafuturehydrogenecosystemviaitsearlyintroductionofhydrogenfuel-celltrucks,maidenexportofafuel-cellsystemandotherworldwidecollaborationefforts.WithESG(Environment,Society,Governance)relatedcriteriaincreasinglytakingcenterstageinbusinessmanagement,HyundaiMotorisharnessingalleffortso

21、nbolsteringitssustainableESGmanagementaspartandparcelofitsbusinessmanagementstrategy.Inthefieldofenvironment,thecompanyaimstocontributetotheimplementationoftheUNParisAgreementgoalsthroughtheexpandedlineupofecofriendlyvehicles,continuoustechnologydevelopment,improvementofvehiclefuelefficienciesandcar

22、bonemissionsreductionacrossitsentirevaluechain,includingbusinesssitesandsupplychains.Inthefieldofsociety,wehavesetrespectinghumanrightsasourunnegotiablepriority,therebystrengtheningthehumanrights,healthandsafetyaswellassupply-chainESGmanagementforallemployeesatdomesticandoverseasbusinesssites.Furthe

23、rmore,wearecontributingtotheenhancementofcustomervaluebysecuringproductqualityandsafety,andservingtheglobalcommunitythroughdiverseCSV(CreatingSharedValue)activitieswiththebeliefthatthecompetitivenessofourcompanyandofthewidercommunitiesinwhichweoperateremainsvitallyinterdependent.Inthefieldofgovernan

24、ce,afemalenon-executivedirectorhasbeenappointedforthefirsttime,enhancingthediversityandexpertiseofourboardofdirectors.LikewiseweaimtodiscussmajorESG-relatedpolicies,enhancethemandreviewtheirimplementationbyexpandingandreformingtheCorporateGovernanceandCommunicationsCommitteeundertheBoardofDirectorst

25、otheSustainabilityManagementCommittee.Humanitynowstandsonthecuspofdefeatingthecoronaviruspandemicandusheringinanewera.Everythingischanging,fromthewayweapproachworktohowwethinkandgoaboutourlives.Butonethingwillremainconstantandabiding:HyundaiMotorCompanysmanagementphilosophythatplaceshumanityaboveall

26、otherconsiderations.Basedonthisimmutablebelief,wewilltaketheleadincreatingasustainablefutureinwhichallmankindcanlivesafelyandhealthilywhileenjoyingfreedomofmovementandtheuniqueofferingsofourlives.ThisistheprimereasonHyundaiMotorstrivestobecomealeadingsolutionsproviderinthefuturemobilityworld.Ourprog

27、resstowardmankindsbetterlifewillcontinueapace.Wekindlyaskforyourcontinuedinterestandsupportforthismeaningfulchallenge.Thankyou.1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook004439,194Elantra(Avante)Company Overview and Major AchievementsHyundaiMotorCompanyhasbeenprovidingcarbuyerswi

28、ththebestproductsandservicespossibleeversinceitsestablishmentin1967.Goingforward,itwillcontinuetopositionitselfasa“smartmobilitysolutionsprovider”basedonits“2025Strategy”anditsindustry-leadingsustainablemanagementactivities.General Information Global Production and Sales in 2020 Sustainability Manag

29、ement Performance in 2020*Asoftheendof2020;BasedonK-IFRSconsolidatedfinancialstatementsTotal Assets Sales RevenueKRW 209.344 trillonKRW 103.997 trillion Credit RatingsMoodysS&PNICEInvestorsServiceBaa1BBB+AA+ProductionSalesKorea1,618,411787,854Overseas2,115,0112,956,883Total3,733,4223,744,737Performa

30、nceInstitutionDowJonesSustainabilityIndices(DJSI)IncludedinDJSIKoreaforsecondconsecutiveyearCarbonDisclosureProject(CDP)HonorsinCarbonManagementsectorPrizeforExcellenceinWaterResourceManagementcategoryChineseAcademyofSocialSciencesCSRAssessment(CASS-CSR)Rankedfirstinautomotivecompanycategoryforfifth

31、consecutiveyearinChinasCorporateSocialResponsibilityDevelopmentIndexEvaluationiFDesignAwardReceived“2021iFDesignAward”for2020HyundaiMotorSustainabilityReportinCommunicationscategory(Unit:Vehicles,as of the end of 2020)2020 Best-selling Models(Unit:Vehicles,as of the end of 2020)293,560Accent217,269

32、Sonata221,597Santa Fe429,241Tucson1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook005Hyundais 2025 StrategyHyundaiMotorCompanyhasupdatedits2025StrategytoreflectarapidlyacceleratingdigitaltransformationandenergyshiftintheautomobileindustryandcustomerneedsandwantsthathavemadetheissueofE

33、SGgovernanceincreasinglyimportant.Inadditiontoitsalready-existingsmartmobilitydevicesandservices,thecompanyisdevelopingmedium-tolong-termstrategiesinvolvingthegrowthofitsnew“H2Solutions”fuelcell-basedhydrogenenterprise.Thecompanyiscommittedtoseekingbalancedgrowthandenhancingitsoperatingabilitiesbyin

34、stitutingstrategiestoenhanceitscompetitivenessandaddtoitsleadershipinthefieldofelectrificationwithinthefinishedvehiclebusiness;buildingafoundationforitsmobilityservicesbusiness;andenhancingitsleadershipinthehydrogenecosystem.Itisalsocommittedtobecominganearlyleaderinthefuelcell-basedhydrogenmarketth

35、atwillhelpitachieveitsvisionofbecomingsmartmobilitysolutionsprovider.Digital TransformationEnergy ShiftBackgroundNon-contact value chainFossil fuel Electric(renewable)energyDigital devices and platform businessesA hydrogen economyEmphasis on ESG Growing awareness of environmental and social issuesDe

36、mand for corporate sustainability management Automotive IndustrySmart Mobility Solution ProviderCustomersEnhance OEM Competitiveness andLead ElectrificationEstablish Basis for Mobility Service BusinessSecure H2 Ecosystem InitiativeStrategic DirectionsThree Main Business AreasSmart Mobility DeviceSma

37、rt Mobility ServiceH2 SolutionBalanced&Steady Growth(Promote Profitability+Volume Growth)Support Car Sales and Secure Business CompetencePrevail in Hydrogen Fuel-cell Based H2 MarketFocus Areas1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook006Electric VehiclesUsing Zero Fossil Fuels

38、and Eco-Friendly Materials and MethodsE-pit Charging BrandHyundaiMotorGroupsE-pitchargingbrandispartofitsdevelopmentofanultra-fastcharginginfrastructureforthekeenly-anticipatedarrivalofafull-fledgedelectricvehiclechargingera.Thefirstultra-fastelectricvehiclechargingstationtobebuiltbyHyundaiMotorGrou

39、pforuseathighwayrestareasinKorea,itwasdevelopedtoaddtotheconvenienceoflong-distanceEVdriversandtomakeEVsmoreattractiveandpopularwiththecountrysautomobilebuyers.Eachonefeaturesa350kW-class,high-speedchargerboastingthehighestoutputinKorea.HyundaiMotorGroupisplanningtoexpanditschargingnetworkthisyear,b

40、eginningwiththeconstructionof120chargerslocatedwithintwentyultra-fastinfrastructures.Theywillincludetwelveatmajorhighwayrestareasandanothereightnearwell-knownlandmarksinurbandowntownareas.Locatedwithinandunderprotectivecanopiedstructures,E-pitchargingstationsprotectvehicleswhiletheyrebeingchargedand

41、keeptheirdriversoutoftheweathertoo.TheconceptwontheGoldawardatthe2021iFDesignAwardinGermanyhostedbytheInternationalForumDesignforbeing“Human-Centered”andputtingpeoplefirst.TheGoldawardwasgivento75entriesoutofmorethan10,000entries.Italsowonawardsfromtwooftheworldstopthreedesignevents,includingaprizea

42、ttheRedDotDesignAwards.Electric-Global Modular Platform:Hyundai Motor Groups first EV-only platformLoadedwithitslarge-capacitybatteries,theE-GMPcantravellongerdistancesonasinglecharge,producemorepower,andboostitsvoltagewithoutneedingadditionalparts,allthankstoitssuper-fastchargingsystem.Themultichar

43、gingsystemisdevelopedandpatentedexclusivelybytheHyundaiMotorGroup.E-GMPsystemwilleventuallyleadtothedevelopmentofvariousotherformsoffuturemobility,suchasautonomousvehiclesandconnectedcarsthatconsumemoreenergythanconventionalvehiclesandoffertheirdriversthedelightsofprecise,high-performancehandling.10

44、0km driving range on a 5-minute chargeFull charge takes only 18 minutes with super-fast chargingE-GMP Battery Charging SystemThe E-pit,the Gold winner at the iF Design AwardInitsrecentreincarnationasanEV-onlybrand,IONIQisplayingaleadershiproleforatrulysustainablefuture.Hyundaisfirstdedicatedelectric

45、vehicle,theIONIQ5waslaunchedinApril2021.ItwasdesignedtofitontotheHyundaiMotorGroupsnewE-GMPEVplatform,whichisequippedwithamulti-chargingsystemthatisfullycompatiblewithmanychargingtechnologies.Itcanberapidlychargedatanychargingstationthankstotheworldsfirstultra-fastchargingportandachargingsystemthati

46、scompatiblewithallcurrently-existingcharginginfrastructures.AdrivingrangeshouldbethemostimportantfactorindecidingwhichoneacustomershouldbuyamongEVsandothereco-friendlyvehicles.ThisexplainswhyHyundaifocusedsomuchattentiononimprovingtheIONIQ5senginetoincreaseitsdrivingrange,allowingittoprovideevenmore

47、efficient,comfortable,andeco-friendlylong-distancedriving.Althoughitboastsaveryrefinedappearance,itcanfunctionasanoffice,aplayarea,orevenacampingspace,alldependingonitsdriverstastesandneeds.Peopledrivingitcanexperiencethefullfutureofmobilityrightnow,includingtheflexibilitytochangetheircarsinteriorsp

48、aceandsoftware.TheinterioroftheIONIQ5featuresawideselectionofnature-friendlymaterialsandeco-friendlymethods.Itsleatherisdyedandprocessedbyusingvegetableoilextractedfromlinseedtoreduceitsimpactontheenvironment,whileitsinteriorfabricsusematerialssourcedinaneco-friendlyandsustainablemanner.Itsmanufactu

49、ringmethodsincludeusingpolyurethanebio-paintsandeco-friendlyfibers,suchasthreadmadeofpulverizedsugarcane,polyesteryarn,andrecycledplasticbottles.Thecompanyiscommittedtousingevenmoreeco-friendlymaterialsandmethodsinitsIONIQmodelsgoingforward.1.Placementofdriver-centered,fullycustomizeditems2.Trouble-

50、freemulti-chargingsystem12IONIQ 5HyundaisEV-onlyE-GMPplatformcomesloadedwithaslewofinnovativefeatures.AprimeexampleofHyundaiMotorGroupsvastarrayofelectrificationtechnologiesandskills,theplatformoffersmoreflexibilityforproductdevelopmentthanthecompanysexistingplatformsthatarebasedonrevampingitsintern

51、alcombustionengines.Italsoboastsanarchitectureandastructureespeciallyoptimizedforuseinelectricvehicles,astandard,large-capacitybatterysystem,anextendedcruisingrange,asleek,futuristicdesign,andaninnovativeuseofinteriorspace.1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook007AI-driven F

52、uture Robot Taxi Fullyautonomousrobotaxishavenodriver.Theyoperatebyusingartificialintelligence(AI)technologies.Farescanhailthemusingtheirsmartphones,andthetaxiscometothemafterdeterminingtheirpreciselocations.Paymentsaremadeautomatically.Becausetheirfaresrideinthemonlyasfarastheyneedtogo,theydontneed

53、tobuyacarorworryaboutsuchissuesasparking,insurance,orvehicleupkeep.Theycanmovefreely,anywhereandanytime.Hyundaihassetthecommercializationofrobotaxisasanewbusinessgoal.Motional,foritspart,announcedthatthecompanysIONIQ5vehiclewillbethenext-generationrobotaxiplatform,andplanstoloaditwithLevel4autonomou

54、sdrivingfunctions.ItwillintroduceafullyautonomousrobotaxiserviceinmajorU.S.citiesandregionsbeginningin2023,andwillexpandthenumberofvehiclesgoingforward.TheywillbeHyundaiMotorvehiclesequippedwiththecompanysfullautonomousdrivingsystems,madeavailableontheLyftplatform.Autonomous Driving Technology Level

55、s Thedriverunderstandsthesituationanddoestheactualdriving.Thedriverunderstandsthesituationanddoestheactualdriving Systemsareinplacetoassistthedriverwithaccelerating,decelerating,andsteering.ThevehicleisequippedwithSmartCruiseControl,LaneKeepingAssist,etc.Systemsareinplacetoassistthedriverindecelerat

56、ingandsteering,usingeitherasimplewarningoratemporaryintervention.Systemsareinplacetoassistthedriverwithaccelerating,decelerating,andsteering.Highwaydrivingassistanceisprovided ThedriverunderstandsthesituationanddoestheactualdrivingLevel 0Level 1Level 2Level 3Level 4Level 5No Driving AutomationDriver

57、 AssistancePartial Driving AutomationConditional Driving AutomationHigh Driving AutomationFull Driving Automation Canbeusedforautonomoushighwaydriving Thevehiclessystemsoperateitonallroadwaysandinallconditions Systemsareinplacetounderstandroadconditionsanddotheactualdriving.Thedriverdrivesasrequeste

58、dbythevehiclessystems ThedriverdoesnotinterferewiththevehiclessystemsAutonomous DrivingAutonomousvehicleshavebeencalled“anaggregationmadebyconvergingadvancedinformationandcommunicationstechnologiesandautomobiles.”Automobiles,whichfordecadesusedtobejustasimplemeansoftransportation,arenowexpectedtoenh

59、ancethequalityoftheirownerslivesintheirrolesasacombinationpersonalspaceandservicemedium.HyundaiisplanningtoinstallitsLevel3HighwayDrivingPilot(HDP)inallitsmass-producedvehiclesbeginningin2022,allowingdriverstotrythemouthands-freeevenonhighways.ThecompanywillalsomakeimprovementstoLevel2HighwayDriving

60、Assist(HDA)thatitiscurrentlyusinginitsmass-producedvehicles.Itsotherplansforcarsinthatclassfor2021includesuchtechnologiesasParkingCollision-AvoidanceAssist(PCA)thatcanrecognizepedestriansandobstaclesatthefront,side,andrearofacarwhenitsbeingparkedandexiting,andRemoteSmartParkingAssist2(RSPA2),whichhe

61、lpsdriverswiththeirparkingbyusingacameraandanalready-existingultrasonicsensor.ThecompanywillgraduallyadvanceautonomousdrivingfunctionsbyapplyingtheOver-the-air(OTA)functiontovehiclestobeproducedafter2021.ThecompanyisalsoacceleratingitscommercializationoffullyautonomousLevel4and5drivingtechnologies.I

62、tplanstoapplytheremoteautonomousparkingfunction,whichparksacarbyitselfwithoutitsdriverneedingtodoanything,toallitsvehiclesin2024.Beginningin2024,HyundaiMotorGroupintendstocommercializeaLevel4autonomousdrivingsysteminsmartcities,movinguptoafullyautonomousdrivingmodeby2030.Bothlevelscitedareasdefinedb

63、ytheSocietyofAutomotiveEngineers.Driverless driving on public roadways MotionalisthenameofajointventurebusinessformedbyHyundaiandAptiv,anAmericanautonomousdrivingstartup.ItrecentlysuccessfullycompletedadriverlessdrivingtestonpublicroadwaysinLasVegas.Theoperationalcapacitiesofthecompanysautonomousdri

64、vingsystem,technologies,operationalcapabilities,andotherfeatureswererecentlyverifiedbyTVSD,aglobaltestingandcertificationoperator.InthetestdriveexperimenttookplaceinFebruary2021,anumberofdriverlessautonomousvehicleshadtodealwithsuchcommontrafficissuesasintersections,unprotectedturns,andcongestedroad

65、s.Althoughasafetyofficerwasseatedinthemforpathverificationandtomakeemergencystops,thetestdrivereferredtoaboveoccurredwithoutasafetyofficeronboard.Autonomous vehiclesAutonomous Vehicles:“An Aggregation of Advanced Technologies”1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook008Connecte

66、d CarsAttracting 10 million subscribers around the worldThenumberofpeoplewhowanttoenjoytheconvenienceofa“smartcarlife”hasbeenincreasingnowthatautomobilesarebeingseenasmorethanasimplemeansoftransportation.Theterm“connectedcarservices”refertovehiclesequippedwithtechnologiesthatenablevehiclecontrol,veh

67、iclemanagement,andotherformsofdriverassistanceusingin-vehicleinfotainmentsystemsandsmartphoneapplications.Theydothisbyconverginginformationandcommunicationstechnologies(ITs)withintheautomobiles.HyundaiMotorGroupintroducedaconnectedcarservicein2003withthelaunchofMozen,Koreasfirsttelematicsservice.Itc

68、urrentlyprovidesGenesisConnectedService(GCS),HyundaiMotorBluelink,andKiaUVOservicesandawidevarietyofconnectedcarservicestoitscustomers.TheservicesincludeRemoteControl,SafetySecurity,VehicleManagement,Directions,andCarpay.TheRemoteControlfunctionallowsthevehicletobecontrolledthroughsmartphone-andnatu

69、rallanguage-basedvoicerecognition.Itincludesremoteairconditioning,dooropeningandlocking,windowopeningandshutting,home-to-carandcar-to-home,parkinglocationconfirmation,anddestinationverificationandcompletion.TheSafetySecurityfunctionhelpsdriversandtheirvehiclesavoidmanyaccidentsandemergencies.Itinclu

70、desautomaticnotificationwhenanairbaghasbeendeployed,SOSemergencydispatching,thefttracking,alarmnotifications,andvaletparking.TheVehicleManagementfunctionhelpspeoplemanagetheirvehiclesmoresafely.Itprovideswirelessupdatestothecarsnavigationsoftware,batterydischargenotifications,vehiclediagnoses,andinf

71、ormationaboutengineandotherservicingthatneedstobedone.TheDirectionsfunctionprovidesdriverswithaccurate,real-timetrafficinformation,finaldestinationguidanceusingaugmentedrealitynavigation,mycarlocationsharing,andeasyandquickdestinationsettingsandsharing.Vehiclesequippedwiththeseservicesarenowbeingupg

72、radedwithHyundaiseasy-to-useCarpayin-vehiclepaymentservice.Driversaccessingitcanpayforgasandparkingatmemberstoresthroughtheircarsinfotainmentsystemwithoutusingacreditcard.HyundaiMotorGroupwillcontinuestrengtheningitspositionasaleadingplayerintheconnectedcarservicesectorbydeployingmoreuserconvenience

73、services,suchasinformationaboutroadconditions.Allofthemwillbedesignedtomeetthemanydifferentneedsofitscustomers.ThetotalnumberofdriversinKoreasubscribingtotheHyundaiMotorGroupsconnectedcarserviceswas1.3millionin2019,2.2millionin2020,and2.5millionasofApril2021.HyundaiMotorGroupalsoprovidesconnectedcar

74、servicesintheU.S.,China,Canada,India,andEurope,andplanstocontinueexpandingittoallregionsoftheworldgoingforward.Connectedcarsaredesignedtoprovideoptimizeddrivingexperiencesforvehicledriversandtheirpassengersbyconnectinglargeamountsofdatathataregeneratedwhilevehiclesarebeingdrivenwithexternally-genera

75、tedinformationaboutreal-timetrafficconditions,roadconstruction,andnews,music,weather,andsports.Itisimportanttoapplyhigh-performancesemiconductorstothesevehiclestogatherandprocesssuchlargeamountsofinformationefficiently.Aftercomingtotherealizationthatthesuccessorfailureofitsconnectedcarswouldrestonth

76、eongoingperformanceofsuchpowerfulsemiconductors,HyundaiMotorGroupsignedatechnologydevelopmentagreementwithacompanycalledNVIDIAin2015.NVIDIAboastsunrivaledtechnologicalprowessinthefieldsofartificialintelligence,machinelearning,graphicsrecognitionandprocessing,anditsNVIDIADRIVEinformationprocessingsem

77、iconductorisrenownedforitsabilitytoprocesslargeamountsofdataatsuper-highspeeds.WhenHyundaisGENESISGV80andG80werelaunchedin2020,theycameloadedwithaconnectedcaroperatingsystem,orccOS,towhichNVIDIADRIVEwasappliedforthefirsttimetocompetethedevelopmentofahigh-endinfotainmentsystem.TheGroupisplanningtoapp

78、lytheccOSsystemtoallitsvehicleslaunchingin2022andthereafter.Itwillalsoprovidedriverswithaseamlessvehicleexperiencethroughoutitsentirelineup.TheycanalwaysaccessthelatestccOSjustbyupdatingtheirvehiclessoftware.HyundaiMotorGroupsConnectedCarComputingSystemTechnologywonthePrimeMinistersAwardatthe2020Kor

79、eaTechnologyAwards.Prizesatitaregiventoexcellenttechnologiesthathavealargerippleeffectonadomesticindustry.HyundaiMotorGroupsConnectedCarComputingSystemcomeswithitsveryownConnectedCarOperatingSystem,acoresoftwareplatformforconnectedcars,aswellastheworldsfirstgigabit,Ethernet-based,high-speedin-vehicl

80、enetworkarchitectureforautomobiles.Hyundaiwaspraisedattheawardsforleadingtheworldsconnectedcarmarketwithitsown,dedicatedtechnologiesinsteadofrelyingonoverseassystems.ItwasalsocommendedforitscontributionstostrengtheningthecompetitivenessoftheKoreansoftwareindustrybyloweringentrybarriersforthedevelopm

81、entofconnectedcarsoftwarebysmall-andmedium-sizedenterprisesandstartups.ThisindependenttechnologydevelopmentledtheHyundaiMotorGrouptoanticipatethecreationofsocialvalueworthaboutKRW4.46trillionoverthenextsixyears,mainlybyreducingtheneedforsoftwaresystemsmadeoverseas.Itwillalsostrengthenthenationscompe

82、titivenessinthefieldofsoftwarebyencouragingwin-wingrowthwiththecountrysSMEs,aswellasleadingtoincreasedjobcreation,newbusinessstartups,andincreasedemploymentofsoftwareworkers.Working with NVIDIA to provide the very latest in connected car services Received Prime Ministers Award for Connected Car Comp

83、uting System Technology1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook009RobotsA Progress towards“People-centered”HumanityRoboticstechnologyisaconvergencetechnology.HyundaiMotorGroupisdevelopingitwithathree-partfocus:wearableorarticulatedrobots;servicerobottechnology,whichisanintegra

84、tionofhuman-robotinteraction(HRI)solutions;andmobilerobottechnologythatwillincreasepeoplesmobilityundertheGroupsvisionof“ProgressforHumanity.”Initsroleasasourceoffuturemobilitysolutions,roboticstechnologywillcreateconstantlyhigherapplicationlevelsbyofferingnewservicesaidedbyafaster,moreflexible,andm

85、orecomprehensiveintelligence.Wearable RobotsWearablerobotsaddtopeoplesmusclestrengthbysensingtheintentionsoftheirwearers.LeadingexamplesincludetheMEXmedicalwearablerobot,whichaidsintherehabilitationofmobility-impairedpeoplesuchasparaplegicsbyhelpingthemtowalkontheirown;andCEXandVEXnon-motorizedindus

86、trialwearablerobots,whichreducetheincidenceofmusculoskeletaldisordersinworkersperformingrepetitive-motiontasksandhelpthemreducemusclefatigue.Wearablerobotswillplayanintegralrolegoingforwardinthecreationofsmartfactoriesthatwillcoexistwithpeoplewithoutalienatingworkersfromthesitesthatarebeingreplacedb

87、yautomation.Service RobotsPeoplesdemandsforvirtualandnon-contactserviceshaveexplodedduetoCOVID-19.Inresponsetothisphenomenon,theHyundaiMotorRoboticsLabhasbegundevelopingservicerobotsthatcanprovidemanydifferentservices.Theycomeequippedwithahostoftechnologies,suchasartificialintelligence,naturallangua

88、geprocessing,andautonomousmobility.Oneexampleisthe“DAL-e”customerservicerobot.LaunchedatHyundaisSongpa-daeroshowroominSeoulinJanuary2021,itwasdevelopedtomeettheneedsofcustomerswhoprefernon-contactservices,toworkwithouttimerestrictions,andtoserveasbridgesbetweenemployeesandcustomers.Thecompanyisalsod

89、evelopinganelectricvehiclechargingrobotthatautomaticallyconnectsaweightyEVchargertoacarusinganartificialintelligenceinterface.Itisalsoworkingonahotelservicerobotthatdeliversroomsuppliesandfoodinhotelstoincreasetheir24/7convenienceservices,aswellasthesoftwareneededtoserveasafleetmanager.Mobile Robots

90、Mobilityserviceshavebecomemorediverseanddetailedintheirapplications,includingservingasveryshort-distancetransportationmodes.AprimeexampleistheLastMileserviceandmobilerobotsareashort-distancetransportationmeansforthis.Theterm“mobilerobots”referstotransportationmodesthattravelshortdistancestypicallyon

91、etothreekilometers-tofillaservicegapuntilthelastmile,meaningageographicalsegmentinwhichauserarrivesathisorherfinaldestinationafterusingabusorsubway.HyundaiMotorGroupisbusilyconductingR&Dinto“E-Board”lastmilemobilityrobots,theirpossibleexpansiontomeetnext-generationmobilityneeds,andthedevelopmentofco

92、nceptmodels.1.ChairlessEXoskeleton(CEX):Achair-typewearablerobot2.VestEXoskeleton(VEX):Anupperbodyassistivewearablerobot3.MedicalEXoskeleton(MEX):Amedicalwearablerobot4.AutomaticChargingRobot(ACR):AutomaticEVchargingrobot5.Driveyou,Assistyou,Linkwithyouexperience(DAL-e):Salesbaseservicerobot6.Hyunda

93、iHotelDeliveryDroid(H2D2):HotelDeliveryRobot7.E-Board:LastMileMobility12346571 Introduction3 Social4 Governance2 Environmental5 ESG Factbook010MobilityCreating a Big Data-Based Mobility EcosystemHyundaiMotorGrouprecentlysignedanMOUwiththeKoreaTransportationSafetyAuthority(TS),HyundaiCommercial,andKB

94、Insurancetopromotetheuseofbigdata-linkedtrafficservices.UsingbigdataaboutKoreantrafficpatterns,theGroupdevelopedanext-generationDigitalTachoGraph(DTG)terminalandavehicledataplatform.Theyareintendedtomakelifeeasierfordriversofcommercialvehicleswhilealsoloweringsocialcostsbyencouragingthedevelopmentof

95、asafedrivingculture.HyundaiMotorGroupwillusethesystemtocollectvehicleoperatingdataandotherinformationandprovideittotheTS.Basedonit,HyundaiCommercialandKBInsurancewilldevelopusage-basedInsurance,orUBI,thatwillprovidepremiumdiscountsgearedtoapersonsdrivingbehavior,aswellasproductsthatadjusthisorherloa

96、nlimitsandtheinterestratestheypay.Growing Koreas smart mobility solutions sector and building models for collaborationHyundaienteredintoKoreasmobilityservicessectorbyestablishingMOCEAN,acompanyspecializinginmobilityserviceoperations.Itdidthisinordertocementitsfutureasasmartmobilitysolutionsprovider.

97、Thecompanyhasbeenprovidinga“MOCEANSmartSolution”vehiclecontrolandmanagementservicetosmall-andmedium-sizedrentalcompaniessinceMay2020.Italsooffersavehicledataandserviceoperationdatacollaborationmodelforusebylargecarrentalandcarsharingcompanies.PlansarealsointheworkstoestablishaProofofConceptmobilitys

98、olutionbusinessforusebydriversoftaxisandcommercialvehicles.Itistobesetupinthesecondhalfof2021.Thecompanyisseekingtoactivateanecosystembybuildingawiderangeofcollaborationmodelswithdomesticmobilityoperators.ADTGisadevicethatstoresinformationrelatedtoavehiclesoperationinrealtime,suchasitsdrivingspeed,i

99、tsrateofdecelerationandacceleration,andanysuddenbraking.Itisrequiredforuseoncommercialbuses,trucksoveroneton,andschoolbuses.TheTScancheckdriverscompliancewiththeirminimumresttimes,whethertheyhavebeenspeeding,andotherdata,allbasedontheirDTGoperatingrecords.Operatingrecordsthathavebeencollectedbythene

100、xt-generationDTGcommunicationsmodulethatiscurrentlydevelopedbytheHyundaiMotorGroupandtheTSareautomaticallyuploadedtotheTSsserver,eliminatingtheneedtomanuallyextractthemusinganSDcardoraUSB.Expandingthenewsystemisexpectedtoincreasethecollectionrateofoperatingrecordsexponentially.Attracting partners an

101、d commercializing all areas related to vehicle useParkingVehicle PurchaseVehicle ManagementInsuranceVehicle OperationsRefueling and ChargingCar WashesMobilityShopping/PurchasesUsed CarsHydrogenCharging/AutoLogs(AccumulatedMileage)RefuelingWarnings(CumulativeMileage)AutoLog(CumulativeMileage)Valet,Pa

102、rkingInformation(DestinationConfirmation,ParkingSpotLocations)Non-contactCarWashes(RemoteDoorOpening,ParkingSpotLocations)CurbsidePickup(DestinationConfirmation)RewardsProgram(AccumulatedMileage,MileageRange)FleetManagement(Mileage,etc.)UsedCarTradingPlatform(CumulativeMileage)PerMileInsurance(Cumul

103、ativeMileage)UBIInsuranceDiscounts(SafeDrivingIndex)Opendatareferstodatathatisprovidedinaformthatcanbeusedbyoutsideinterestsafterrefiningandprocessingtexts,images,audios,videos,andothercommunicationmaterialsacquiredorcollectedbygovernments,NGOs,andprivateenterprises.Usersaccessopendataplatformstocre

104、atenewvalues,suchasbuildingpeoplesinterestinsomethingordevelopingnewbusinesses.HyundaiMotorGrouphaslaunchedaseriesofopendataplatforms,includingHyundaiDevelopersin2019,KiaDevelopersinApril2020,andGENESISDevelopersinMay2020.Itsgoalindoingthiswastobuildanecosystemthatcouldcreatenewservicesforuseinitscu

105、stomerscarsbyutilizingitscardatatechnologyinpartnershipwithstartups,SMEs,andlargecompanies.Theseopendataplatformsassistinprocessingsuchoperationaldataastotalmileagedriven,remainingfuellevels,anddrivinghabitsthathavebeencollectedfromthecustomersvehiclesinanexternallyusableApplicationProgrammingInterf

106、ace(API).ThedataisthenprovidedtotheHyundaiMotorGroupspartnercompanies.Itisonlysharedtoincreasecustomervalues,andthenonlyifacustomeragreestoit.PartnersusingopendataplatformsaccessdataharvestedfromvehiclesthathavebeencollectedbyHyundaiMotorGroupscollection,analysis,andprocessingtechnologiestoassistthe

107、mindevelopingnewmobilityservicesforcustomers.Theservicestheydevelopfallintofourbasiccategories:vehiclemanagement,vehicleconvenience,vehicleinformation,andvehiclefinancing.Eighteenserviceshavebeencommercializedthrough“Developers,”withtheirtotalnumberofcustomersbeingabout240,000.Launched“Developers”Op

108、en Data Platforms 1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook011Total number of subscribersTotal mileageTotal number of operations“ZET”Last Mile Mobility PlatformHyundairecentlycompletedthedevelopmentofitsZETlast-milemobilityplatformandstartedprovidingelectricscooterstolocally-ow

109、nedsmall-andmedium-sizedserviceproviders.TheZETserviceisanopenstructure,inwhichHyundaibuildsaB2Bserviceplatformthatserviceoperatorscanusetooffertheirservicestotheircustomers(B2C).Theplatformispartofthecompanysmissionofcontributingtothedevelopmentofenhancedmobilityservicesandthebuildingofawin-wingrow

110、thsystemthatprovidesoptimizedsolutionstosmall-andmedium-sizedbusinesseshavingdifficultyenteringthelast-milemobilityservicesmarket.Key ZET Operational Indicators AsofMay11,2021.Theearthscircumferenceis40,075km45,98411,752+34,23252,058km333,392km1.3 circumnavigations of the earth8.3 circumnavigations

111、of the earth281,334km+7.0245,93939,751December 20,2019December 20,2019December 20,2019May 11,2021May 11,2021May 11,2021+206,188Developing More Smart Mobility ServicesCarrying out“Smart City Challenge Project”of the Ministry of Land,Infrastructure and Transport with the City of IncheonHyundaiispartic

112、ipatingintheMinistryofLand,InfrastructureandTransports“SmartCityChallengeProject”withtheCityofIncheon.Thegoaloftheexerciseistocouplethecreativeideasofordinarypeoplewiththeadministrativeandfinancialabilitiesoftheirlocalgovernmentstohelpresolveurbanproblemsinsuchareasastransportation,theenvironment,an

113、dsafety.HyundaiwillcarryouttheprojectfromSeptember2020toDecember2022afteranagreementin2020.“IncheonEum,”whichisthethemeoftheproject,willbeakeysolutionforsolvingtransportationproblemsinIncheonbyoperatingthreehundredI-ZetelectricscootersandtwentyIncheon-MobilityonDemand(I-MOD)buses.TheI-MODwillbeusedt

114、ocreateAI-basedoptimalbusroutesinrealtimewhenpeoplewantingtoaccesstheminputtheirdestinations.OthermutuallybeneficialsolutionswillbeusedtoaddressroadtrafficproblemsintheIncheonareabyprovidingafully-integratedmultimodalserviceinconnectionwithIncheon-MobilityOfferAccompany(I-MOA),anintelligent,short-di

115、stance,sharedtaxiservicethathasbeengrantedaspecialroleinthedemonstrationprojectbytheMinistryofLand,InfrastructureandTransport.Campus Mobility ServiceHyundaiMotorCompany,HyundaiAutoever,andMOCEANrecentlylaunchedaCampusMobilityServicetoprovidehigh-levelmobilityservicestotheemployeesofthecompanysNamyan

116、gTechnologyResearchCenter.Initsroleasthenationsfirstcommunity-basedmobilityservicemodel,itoffersthreetypesofservice:a“CampusCarSharingService,”a“CampusCommutingCarpool,”akeysolutionforaddressingdifficultyincommuting,anda“Late-NightShuttleBusOn-DemandService”forpeoplemovingwithinthecenterlateatnight.

117、Thethreeserviceswillbeexpandedinstagestoincludeupgradingalready-operatingbusshuttlesandaddingmorecommuterbuses.CommercialB2Bmobilityserviceswillbeprovidedtosuchothersitesasuniversitycampusesandindustrialcomplexesfrom2022onwards,withdifferentmobilitymodesandmoreserviceareasbeingaddedinmoreremoteareas

118、.Thecompanyplanstoaddmoreservicemodelsandexpandtheirservicingareasinternationally.International Mobility ServicesThe MOCEAN Car-Sharing Service in U.S.Hyundaicreateda“MOCEANLab”mobilityserviceinLosAngelesinJune2020,andsoonfollowedupbylaunchingMOCEANCarshare,”thecitysveryfirstfree-floatingeco-friendl

119、ycar-sharingservice.Conventionalcarsharingservicesrequiredriverstorentandreturntheirvehiclesatthesameplace.Incontrast,MOCEANLabsFree-FloatingServiceallowsthemtorentandreturntheirvehiclesanywhereinpartnershipwiththeCityofLosAngeles.The“MOCEANCarshare”serviceutilizesstreetparkingspacesintheareasofdown

120、townLosAngeles,EagleRock,andWestLosAngeles.ItusesIONIQcars(bothPHEVsandHEVs),butwillexpandtheoperationgoingforwardtoincludeevenpureelectricvehicles.*Free-Floating:Anewcar-sharingservicewithoutrestrictionsonrentalsandreturnsthatutilizesparkingspacesoncitystreetsMOCEAN Mobility Subscription Service in

121、 SpainMOCEANSubscriptionisthenameofamobilitysubscriptionservicethatthecompanylaunchedinBarcelona,Spainthisyear.Itisfeaturedbyprovidingcustomerswithvehiclesandancillaryservices,butwithoutthemhavingtoactuallyownaHyundaivehicle.Itisavehiclesubscriptionservice,inwhichacustomercanuseavehicleforacertainam

122、ountofmoneyforaperiodofuptotwenty-fourmonths.Thevehiclecanbereplacedeverysixmonths.Customerspayafixedfeethatgivesthemaccesstoavehicleandinsurance,maintenance,andservicing.DriverswhosubscribetotheservicecanpickuptheirvehicleatanyHyundaidealershipattheirdesireddateandtime.Hyundaiplanstoexpandtheservic

123、ethroughoutEurope,includingtheUK,goingforward.ItwillalsoincreaseitsproductmixtoincludeEVsandothereco-friendlyvehiclestoofferaneco-friendlymobilityservice.I-MOD buses on demandMOCEAN Carshare1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook012HydrogenLeading the hydrogen-powered EV mark

124、etCompetitionforleadershipinthehydrogenelectricvehiclemarketisintensifyingrapidly.SalesofHyundaisNEXOhydrogen-poweredEVamountedto6,600unitsin2020,up36%overtheyear,givingthecompanya69.0%marketshare.First export of the hydrogen fuel cell system HyundaiexportedfourhydrogenfuelcellsystemstoGRZ,ahydrogen

125、storagetechnologycompanyinSwitzerland,andanenergysolutionsstartupinEuropeinSeptember2020.Thesalehappenedafterthecompanyobtainedanapprovalfortheexportofnational-levelcoretechnologiesfromtheMinistryofTrade,IndustryandEnergy.Itwasthecompanysfirstexportoffuelcellsystemstobusinessesinthenon-vehiclesector

126、.ItpresentedanespeciallyoutstandingopportunityforpromotingKoreanadvancedtechnologiesintheeco-friendlysectoroftheEuropeanmarket,sinceitwasthefirstsuchoverseassaletobemadeaftertheEuropeanCommissionannounceditshydrogeneconomystrategyinJuly2020.Non-automobilesectorexportslikethisareexpectedtoprovidethec

127、ompanywithaverywelcomesteppingstoneforbroadeningitshydrogenbusinessbeyondfinishedvehicles.Itwillcontinuetoexpandthescopeofitshydrogenbusinessbyincreasingsalesofitshydrogenfuelcellsystemsthroughouttheglobe,includingtheU.S.andChina.Construction of the Hydrogen Fuel Cell Power Generation SystemHyundaic

128、ompletedtheconstructionofa1MWhydrogenfuelcellpowergenerationsystembasedonitsNEXOFCEVtechnologyinJanuary2020,andheldaceremonytomarktheoccasionincompanywithKoreaEast-WestPower,Deokyang,andUlsanMetropolitanCity.Thecompanysoonbeganthesystemspilotoperationsinearnest.Thesystemisdifferentfromotherfuelcellp

129、owergenerationsystemsintermsofitsquickoutputcontrol.Unlikeotherfuelcellpowergenerationsystems,Hyundaiusesitsvehiclefuelcelltechnologytoquicklycontroltheamountofelectricityproducedinrealtime.Doingthismakesitpossibletolessentheproblemofvariabilityinthesupplyanddemandofrenewableenergyexperiencedbysuchm

130、odesassolarandwindpower.Partsreplacementandmaintenancecostsforthesesystemsusedtobeveryhigh,becausemostofthefuelcellsusedforpowergenerationinKoreawerebasedonoverseastechnologies.However,costsforoperatingthissystemareexpectedtodeclineintermsofboththeFCEVpriceandthefuelcellpriceifthemarketcontinuestoex

131、pandinthefuture,andbecausethesystemwasdevelopedusingdomestically-developedtechnologies.HyundaiandKoreaEast-WestPowerplantoexpandtheircollaborationtodozensofMW-levelhydrogenfuelcellpowergenerationprojectsifthetwo-yearpilotoperationendssuccessfully.Strengthening Cooperation with the U.S.Department of

132、Energy for Technological Innovations in Hydrogen and Hydrogen Fuel Cell TechnologiesHyundairecentlysignedanMOUwiththeU.S.DepartmentofEnergy,forhydrogenandhydrogenfuelcelltechnologyinnovationsandcooperation.TheMOUscorecontentisanagreementtoinnovatehydrogenandhydrogenfuelcelltechnologiesandenhancethei

133、rglobalutilization.Thiswillbedonebysharingdemonstrationandanalysisdataobtainedfromcurrently-operatinghydrogenelectricvehiclesandhydrogenchargingstationsamongmembersofacademia,governmentagencies,andprivateenterprises,andbyincreasingawarenessoftheadvantagesofhydrogenenergywithvariousindustriesandthege

134、neralpublic.ThesignificanceofthisstrengthenedcooperationwiththeDepartmentofEnergyisthatithaslaidthefoundationsforexpandedsalesofhydrogenelectricvehicles,whichhadpreviouslybeenlimitedtothestateofCalifornia,throughoutalltheU.S.Itisexpectedtoresultinjobcreationandinvestmentexpansioneffectsthroughoutthe

135、entirevaluechain,includinghydrogenproduction,storage,andutilization,leadingtoacceleratingtherealizationofahydrogeneconomyandadramaticenergyparadigmshift.Construction of the First Overseas Hydrogen Fuel Cell System PlantHyundaiMotorGroupbegantheconstructionofHTWOGuangzhou,itsfirstoverseashydrogenfuel

136、cellsystemfacility,aftersigninganMOUwithGuangzhouCitytoengageinthehydrogenbusinessinfullscaleandexpandChinashydrogenindustryecosystem.Completionisscheduledfor2022.TheestablishmentofHTWOGuangzhouisthefirststepinHyundaiMotorGroupsplantoaddmorelocationsforitshydrogenfuelcellsystemsforuseasapowersourcef

137、orvariousmobilityandindustrialareas.HTWO Guangzhou Unveiled the“HTWO”,Hydrogen Fuel Cell System brand HyundaiunveiledHTWO,whichishydrogenfuelcellsystembrandatitsCEOInvestorsDayinDecember2020.ThenameHTWOreferstoamolecularformula(H2),butitalsocombinesthetwomajoraxesofthecompanyshydrogenfuelcellbusines

138、s:“hydrogen”and“humanity.”Itsgoalistoprovidesustainablevaluethroughatotallyrenewableenergysource,thusmeetingthemajorrequirementofthecompanysvisionof“ProgressforHumanity.”Hydrogenfuelcellsareeco-friendlypowergeneratorsthatproduceelectricityfromhydrogen.Theycanpowerautomobiles,ships,trains,drones,andc

139、onstructionmachinerythatuseelectricitytodrivetheirmotors.Thecompanyhasdevelopedthehighestpossibleleveloftechnologyindevelopingthem,intermsofbothefficiencyanddurability.Thelaunchofthe“HTWO”brandispartofHyundaisstrategytoexpanditshydrogenbusinessinearnest,centeringonthefourmajorbasesofKorea,Europe,U.S

140、.,andChina.Itwillcontinuetoexpandthebusinessandthedevelopmentofnext-generationhydrogenfuelcellsystemsthatcanbeappliedtoallmodesofeco-friendlyfuturemobility,includingvehicles,ships,trains,andUAMs.Collaboration in technology innovation and global base expansion for hydrogen and hydrogen fuel cells bet

141、ween Hyundai and the U.S.Department of EnergyHydrogen Fuel Cell Power Generation System oper-ated by Hyundai,Korea East-West Power,Deokyang,and Ulsan City 8,0006,0004,0002,00006,6004,861842201820192020Number of vehicles sold(Unit:Vehicles)69%Up 36%Market Share in 20201 Introduction3 Social4 Governan

142、ce2 Environmental5 ESG Factbook013“Hydrogen to you(H2U)”Campaign Promoting HydrogenAftercomingtotherealizationthatahydrogen-basedsocietyisrapidlycomingclosertorealitythankstothegrowingpopularityofhydrogen-poweredEVsandtheconstructionoftheinfrastructuresneededtosupportthem,HyundaiMotorGroupstarteda“H

143、ydrogentoYou,”orH2U,campaignwithsocialinfluencersinEurope.Thecampaignsgoalsweretoinformpeopleaboutthevalueofcleanhydrogenenergyandtoincreasesalesofhydrogen-poweredEVs.ThecampaignstartedinSeptember2020,andwillrununtilJuly2021.Expertsinthefieldsofautomobiles,eco-friendlymobility,andITwillcollaboratewi

144、thlifestyleinfluencersinsuchareasasmusic,fashion,andphotographytodeliveravarietyofcontentafterdrivingandbecomingfamiliarwiththeHyundaiMotorGroupsNEXOFCEVs.TheirtopicswillincludeHyundaisgloballeadershipinthedevelopmentofhydrogenfuelcelltechnology,theroleofsustainablefuturemobility,theestablishmentofa

145、hydrogenecosystem,andwaysofincreasingtheworldsutilizationofhydrogen,whichisfastemergingaveryattractivefutureenergysource.OneoftheHyundaiMotorGroupsmaingoalsinthecampaignistoattractthesupportofMillennials,whoespeciallyvalueprotectingtheenvironmentandmakingtheirsocietycleanerandmorejust,byofferingthem

146、awidevarietyofcontent.Italsowantstoenhanceitscommunicationswithitscustomersthroughthesocialmediapostingsofwell-knownlifestyleinfluencers,aswellasHyundaisglobalchannels.ThecompanyisplanningtotakeitsH2UcampaigntolargecitiesinAsia,NorthAmerica,andotherregionsin2022,lettingmorepeoplehaveanopportunitytos

147、eeanddriveitsNEXO,whichexcelsinshowcasinghowwellhydrogenenergycanbeused.“H2 Economy”Campaign Targeting Global Opinion LeadersHyundaiisbuildingaverypositiveimageamongglobalopinionleadersforitsroleinthehydrogeneconomythroughits“H2Economy”campaign,whichtakesplaceinpartnershipwithBloombergMedia.Promotin

148、gthecompanyshydrogentechnologyandproductsthroughthemediumofeducationalvideocontentallowsittoraisetheawarenessofwidely-recognizedopinionleadersabouthydrogen.Itdoesthisbyoutliningthepivotalrolethatcanbeplayedbyhydrogenenergyinensuringthattheworldwillhaveatrulysustainablefuture.Bloombergencouragesthegr

149、owthofthehydrogenindustryintheglobalmarketplacebyannouncingits“H2EconomyRanking”offifteencountriesaroundtheworldintermsoftheirsupportfortheuseofhydrogenandtheirpoliciesandinvestmentlevelsinthehydrogenindustry.H2U CampaignH2 Economy CampaignHyundai x BTS Global Hydrogen Leadership CampaignHyundaihasb

150、eencarryingoutaGlobalHydrogenCampaignincollaborationwithBTS,aseven-memberKoreanboyband,withtheslogan“BecauseofYou.”Thecampaignwaslaunchedin2020withamissionoftellingpeopleabouttheeco-friendlinessandsustainabilityofhydrogenanditspotentialasaverypromisingcleanenergysourceforthefuture.Thisyearthecampaig

151、nismarkingEarthDayandEnvironmentDaywiththemessage“Fortomorrow,wewontwait”beingdeliveredthroughthebandsManifestovideoanddocumentary-stylecontent.Thepointunderlyingthemessageisthatpracticingsustainabilityisafundamentalresponsibilityifwearetogivefuturegenerationsahappierandhealthierfuture.Thecompanywis

152、hestospreadagoodinfluencetothebandsmanyfansaroundtheworldbycommunicatingitspreemptivehydrogen-relatedeffortsandpractices,whileencouragingeveryonetoparticipateinthem.Global Hydrogen Leadership Campaign1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook014Open InnovationIn-house Startup Pr

153、ogram HyundaiMotorGrouphasbeenoperatinganin-housebusinessstartupsupportprogramsince2000.Itsgoalsaretoassistemployeeswhohaveespeciallycreativeideasandtoencouragetheestablishmentofinnovative,future-orientedbusinesses.Teamsofemployeesthathavebeenselectedthroughaseriesofinterviews,workshops,andpresentat

154、ionsareprovidedwithassistancetodeveloptheirproductsandservicesforoneyear,alongwithdevelopmentcostsofuptoKRW300million.Fifty-eightcontestwinnershadbeenselectedasofApril2021,resultingintheestablishmentoftwenty-twobusinesses.Ninecompaniesareduetobespunoffin2021.Thecompanyplanstofosterandspinoffaboutten

155、in-housestartupsayear.Althoughthemaingoaloftheprogramwasinitiallythedevelopmentofvehiclepartsinrelationtoitsmainbusiness,itwasextendedtoincludetheentireHyundaiMotorGroupin2018.Asaresult,avarietyofnewtechnologiessuchasblockchain,theInternetofThings,andartificialintelligence(AI)andM.E.C.A.(Mobility,El

156、ectrification,Connectivity,Autonomous)havebeenincludedasnewbusinessareas.Theoperationofitsin-housebusinessstartupsupportprogramallowsHyundaitocontinueitsnovelopeninnovationactivitiesandencouragethecommercializationofcreativeconceptsandideas.HyundaiMotorGroupestablishedanopeninnovationcollaborationsy

157、stemwithQuantumHub,anorganizationdedicatedtoopeninnovationthattheTabraGroupofIsraelestablishedinMarch2020.Thepartnershipcarriedouttwoventurestartupprograms.Outofthe150orsoIsraelistartupsthatparticipatedintheprogram,twowereselectedandareinvolvedinatechnologyverificationprojectwithHyundaisfieldjobteam

158、.Theprogramwillbestrengthenedin2021byexpandingitsscopetoincludealltheaffiliatesoftheHyundaiMotorGroup.Cradle Beijing in China Locally-orientedopeninnovationactivitieswerepromotedfollowingtheestablishmentofCradleBeijinginChina.ThecompanydiscoveredanenergyaggregatorstartupcalledNewLinxandapplieditstec

159、hnologytomass-producedvehiclesinChina.ThisresultedfromitsactivitiestouncoverpromisingstartupsincooperationwiththeHyundaiMotorTechnology&EngineeringCenter(China),adivisionofHyundaiMotorGroupChina(HMGC).ThecompanyalsobecameactiveinfindingoutstandingChinesemobilitystartups.ItdidthisbylaunchingaJointAcc

160、PrograminpartnershipwithTencent,thelargestICTcompanyinthecountry,andagovernmentincubatorintheShanghaiZhangjiangHi-TechPark,thecountryslargestinnovationdevelopmentzone.InordertoactivelyrespondtotheChinesemarket,whichboastsfastergrowthwithinthemobilityindustrythanotherpartsoftheworld,thecompanywillpla

161、nandpromotevariousinnovationactivitiesthatwillhelpitsfutureChineseoperationsbothinternallyandexternally.Organized ZER01NE Fund No.2HyundaiMotorGroupestablisheda“ZER01NEFundNo.2”incollaborationwiththeKoreaDevelopmentBank.Itsgoalistofosterthedevelopmentofsmall-andmedium-sizedstartupventurecompaniesint

162、hefieldoffuturemobility,includingeco-friendlyandautonomousvehicles.Itisparticularlyinterestedininvestinginstartupswithinnovativetechnologiesandcreativeideas.TheZER01NEFundNo.2willassistHyundaiininternalizingfutureinnovativetechnologiesanduncoveringnewbusinessopportunitiesbyinvestinginpromisingstartu

163、ps.Itwillalsoactivelyinvestinpromisingstartupsinfuture-orientednewbusinessareas.Thiswillincludeprovidingthemwithopportunitiestoattendroundtableevents,demodays,andconferencestolearnmoreabouttheHyundaiMotorGroupsstartupdirections.Established Global EV Battery Startup Discovery ProgramHyundaiMotorGroup

164、andLGEnergySolutionestablishedaprogramtodiscoverpromisingstartupsintheelectricvehicleandbatteryfields.240globalstartupsappliedfortheprogram,whichwasheldfromJunetoDecember2020,withnineteenofthemwinningface-to-faceevaluationsaftertheirdocumentshadbeenreviewed.Theselectedstartupswillparticipateinacolla

165、borativeprojectinvolvingtechnologyverificationin2021.IncreasingsalesofEVsareresultinginmoredemandforEVinfrastructuresandservices.HyundaiMotorGroupisplanningtostrengthenitspartnershipswithinnovativestartupsthatwillprovideleadershipinnext-generationbatteryinnovations.Thiswillinvolvepromotingtechnology

166、verificationswiththerelevantdivisionsofeachcompanyandinvestinginthem.Hyundai Motor Group-Korea Development Bank(KDB)“ZER01NE Fund No.2”Quantum Hub Startup Discovery ProgramFive new in-house startups moved in and ten companies were spun off and founded in 2020EV Battery Startup Discovery ProgramInves

167、tment GoalsInvestincreativestartupsandfosterthedevelopmentofsmall-andmedium-sizedfuturemobilityventuresInvestment ScaleKRW80.5billionintotal(includingKRW18billionfromHyundaiMotorCompany,KRW12billionfromKia,andKRW20billionfromKDB)Investment TargetsVenturecompaniesinthefieldsofeco-friendlyvehicles,AI,

168、andfuturemobilityNumber of companies being spun off and started up in 20215 and 109Open innovation collaboration program with the Tabra Group of Israel1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook015Smart FactoriesHyundaiMotorGroupInnovationCenterinSingapore(HMGICS)iscurrentlyunder

169、constructionintheJurongInnovationIndustrialComplex,withcompletionscheduledforNovember2022.Itwillfunctionasanopenresearchbaseforbuildinganinnovativemobilityecosystem,carryingoutresearchanddemonstrationprojectsthatwillestablishamobilityvaluechainfromvehicleorderingtoproductionanddeliverytotestdrivesan

170、dservices.ItwillalsoserveasatestbedfordevelopinganinnovativemanufacturingplatformthatincorporatesIndustry4.0technologies,andverifiesthem.Inordertoexpediteitsconversiontoeco-friendlymobility,itwillalsotesttheeconomicpotentialofnewbusinesses,suchasanEVbatterysubscriptionsystem(BaaS),tohastenthetransit

171、iontoeco-friendlymobility.Assuch,itwillreflecttheHyundaiMotorGroupsvisionofthefuturemobility,suchassmartcities,UrbanAirMobility(UAM),androbotics.TheHMGICSisdesignedtoprovideitsvisitorswithexcitingnewexperienceswhilealsoaccommodatingsmall-scaleintelligentmanufacturingandopenR&D.Housedinaseven-storybu

172、ildingwithatotalfloorareaof90,000m2,itsmostastonishingfeaturewillbeaskytrackonitsupperpartthatwillofferamazinglyexcitingnewexperiencestothecompanyscustomersandbecomeasignaturenewlandmarkinSingapore.Thefacilitys“M-CHoRD”intelligentmanufacturingplatformwillfunctionasamulti-vehicleproductionsystemboast

173、ingtheabilitytorespondflexiblytoanyandallmarketconditionsanddemands.Thiswillenableittoallowfortheefficientandflexibleproductionofvariousautomobilemodelsbecauseofits“cell-unit”assemblyenvironment,whichbreaksawayfromtheconventionalconveyer-belttypeofmanufacturingprocessthatisalmostalwaysdeployedinlarg

174、e-scaleproductionfacilitiesmakingsinglecarmodels.Thefacilitysoperationswillbeoptimizedtoaccommodateawiderangeofmanufacturingenvironmentsandchangesinmarkettrendsandconditions,thankstoareal-time,seamlessconnectionbetweenvirtualsimulationresultsachievedusingadigitaltwinanditsactualoperatingenvironment.

175、Ithasalsobeendesignedtooperateautonomously,allowingforacompletecutoffofmanufacturingqualitydefectsassoonastheyaredetected,alongwiththeremotepreservationofequipment.Initsroleasacarbonneutralmanufacturingbase,itwillcontributetothesustainabilityofthelocalcommunitythroughitsadoptionofsolarandhydrogenpow

176、ergeneration,aswellasbyencouragingthegrowthofapeople-friendlyworkenvironment.Thiswillincludeahuman-robotcollaborationsystem,technologiestoreducetheincidenceofmusculoskeletalinjuriesanddiseases,andaworkguidetutoringsystem.HMGICS Priority TasksManufacturing Platform InnovationFlexible production syste

177、mNolimittotypesofvehicleproductionParticipation in future manufacturing innovations of Group affiliates Battery subscription serviceEasepricebarrierstotheInternalCombustionEngine(ICE)levelsgiventhecharacteristicsofSingaporestaxationlawsHigh-level automationAchieveglobalsuper-gapautomationCustomizing

178、 SuppliesEstablishaftermarketpartsbusinessHuman-Robot CollaborationsImproveworkenvironmentsCustomer ExperienceProvidemanufacturing-basedbrandexperiencesatcustomercontactpointsBTOMinimizeproductionleadtimesandinventoriesSales InnovationsInnovatesaleschannels,reducecostsIntelligent FactoryFully-autono

179、mousproductionsystemQuality Completed FactoryZeroassemblyclaimsDemonstration of new business modelOpen InnovationDemonstrating innovative manufacturing technologiesDiscovering new businessesParticipatingindevelopmentIntellectualpropertiesSF LabCRADLECorp.LabAIR CenterParticipating in future manufact

180、uring innovations by Group affiliatesHyundai Motor Group Innovation Center in SingaporeM-CHoRD,the Vision of HMGICSValue Chain Innovation PlatformFlexibleManufacturingSystem(FMS)allowingfortimelyresponsestothemanifoldneedsandwantsofcustomersContinuoussharingofrealandvirtualinformationtomaximizeopera

181、tionalefficienciesCustomer FocusedData GovernedHuman-friendlyworkenvironmentprioritizingworkersafetyandhealthHuman CentricEco-friendlymobilityandproductionwillencouragethedevelopmentofaneco-friendlysocietyforthefutureResource CirculationCell-based,flexible production systemReal-time,customized logis

182、tics systemWorker health-care systemSmart Tutoring systemDevelops battery circulation ecosystemUses digital twins Optimizes operations through virtual verificationOptimized,data-based operations utilizing AI and Big DataRenewable Energy(Solar/Hydrogen)/Building Energy Management System(BEMS)CHRDOpen

183、 InnovationCreating an eco-friendly mobility ecosystem in SingaporeHyundaiMotorGroupsignedaBusinessCooperationAgreementwithSPGroup,Singaporeslargestenergyprovider,inDecember2020.TheHyundaiMotorGroupsgoalwastobuildaneco-friendlymobilityecosysteminSingaporewhilealsodiscoveringnewbattery-orientedbusine

184、sses.Ithasbeendeliberatelydesignedtolaythegroundworkforanelectricvehiclebatterysubscriptionservice(BaaS)inSoutheastAsia,withaconcomitantgoalofestablishinganelectrificationecosystemwithinSingaporethatwillincludethedistributionofelectricvehiclesandaexpandednumberofcharginginfrastructures.HyundaiMotorG

185、roupisplanningtoutilizeitasameansofdiscoveringnewbusinesses.TheywillincludebatterysubscriptionandmanagementservicesprovidedintheformofleasesbyutilizingitscustomersactualEVbatteryusagedataandtheSPGroupschargingsystemdata,batteryreuseforotherpurposeutilizingbatteriesthatcannotbeusedinvehicles,andbatte

186、ryrecyclingoperationsthatextractlithium,nickel,cobalt,andotherraremetalsfromvehiclebatteries.ItwillplayasignatureandsignificantroleinthebuildingofavirtuouscyclesystemthroughouttheuseofEVsbyloweringtheinitialpurchasingcostburdenofEVsandofferinginnovativeservicesthatusebatteriesinanenvironmentallyfrie

187、ndlyway.HMGICS manufacturing platform for mobility innovation:Completed smart factories1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook016ESGManagementESG ManagementESG Risk ManagementReducingthepossibilityoffinancialrisksarisingfromnon-financialfactorsApproach 1.Strategic Focus on ES

188、GCapturenewmarketopportunitiesandenhancethecompetitivecapabilityApproach 2.ESGGovernanceBOD reportsManagement meetingWorking-level divisionsESGManagement7 Governance2Climate Change Risks&Opportunities3Product Life Cycle Analysis6Supply Chain ESGReference pagesReference pagesReference pages1Carbon Re

189、duction4Conflict Minerals5Human RightsHyundaiMotorCompanytakeswhateverstepsarenecessarytoidentifyESGriskfactorsinadvance,andestablishesmanagementactivitiestominimizetheirnegativeimpactsonitsbusiness.ItalsoexploresnewbusinessopportunitiesandcreatesnewvaluethroughitsstrategicfocusonESG.TheESGgovernanc

190、epoliciesandprogramsthatitnewlyestablishedin2020setESGgoalsforeachdivisionthatreflecttheresultsoftheKPIsaccumulatedbyeachofthem.Thecompanyregularlyconvenesmanagement-levelmeetingstoshareESGissuesandconcerns.MajorESG-relatedactivitiesandissuesareconsideredonasemi-annualbasisbytheBODsSustainabilityMan

191、agementCommittee.ItsdeliberationsresultedinthecreationofsevenkeytasksbasedonthecompanysESGgovernancerulesandregulations.Theyarealldesignedtoenhancethecompanyscorporatevaluethroughstrategicapproachestoeachtask,thedevelopmentofmid-tolong-termprocessesandplans,andthecarryingoutofactiveandseriously-cons

192、ideredimprovementactivities.Sustainability Management CommitteeClimatechange/Operationsenvironment/Productenvironment/Low-carbonproductsEnvironmental(E)HumanRights/HRDevelopment/HRManagement/SocialContributions/HealthandSafety/Customers/QualityManagement/SupplyChainESG/InformationProtection/Innovati

193、onSocial(S)BoardofDirectors/ComplianceandEthicsGovernance(G)ESG Committee*Corporate Strategy Division*AsmallmeetinggroupwithintheHyundaiManagementStrategyMeetingESG DirectionsPriorityTask sReference pagesReference pagesReference pagesReference pages1 Introduction3 Social4 Governance2 Environmental5

194、ESG Factbook017 AnnualglobalsalesofEVsandFCEVsin2020surpassed100,000unitsforthefirsttimeESG PerformanceHyundaiiscommittedtodisclosingitsperformanceineachfieldaccordingtoitsESGmanagementactivitiesin2020.Hyundais annual electrified vehicles sales in 2020 amounted to 258,669Developedemployeehumanrights

195、riskassessmentindicatorsConductedhumanrightsriskassessmentatallbusinesssites(100%)inKoreaStrengthened employee human rights risk management Appointedfirstwomannon-executivedirector,anexpertinthefieldofsafetyofintelligenttransportationandautonomousunmannedsystemsEnhanced diversity of BOD Averagecarbo

196、nemissionsofthecompanysvehiclessoldintheEuropeanmarketin2020fellby30%comparedto2010Reduced carbon emissions from vehicles in the European market by 30%DevelopedsupplychainESGassessmentindicatorsandprocesses(ethics,theenvironment,labor/humanrights,safety/health,managementsystem)ConductedESGriskassess

197、mentofallkeyTier1andTier2suppliers(100%)Strengthened supply chain ESG Management IntroducedvotingsystemallowingshareholderstoexercisetheirvotingrightsusingcomputersormobiledevicesMade exercising shareholders voting rights easier and more convenient 28%ofHyundaiMotorIndias(HMI)totalelectricityusecome

198、sfromrenewableenergy.Itgeneratesitsownelectricityusingphotovoltaicpower,andpurchasesphotovoltaic/windpowerIncreased use of renewable energy by overseas subsidiariesAchievedzerocriticalaccidentsatworkplacesforfourthconsecutiveyearinKorea(2017to2020)Strengthenedcriticalaccidentpreventionandresponsesys

199、temStrengthenedactivitiestoreduceincidenceofseriousaccidentsatsuppliersfacilitiesStrengthened workplace safety RenamedCorporateGovernance&CommunicationsCommittee.AddedESG,safetyandhealth-relatedplans,andimplementationcheckingfunctionstoitsresponsibilities.Established Sustainability Management Commit

200、tee under BODDevelopedthesecondlifeEVbattery-basedenergystoragesystem(ESS)businessBuilt the second life EV battery circulation process6,120traininghoursperyearinareasofhumanrights/safety/environment/qualityProvided ESG-related in-house training DeliberatedonESG-relatedissues,decision-making,andperfo

201、rmancesharing,promotedESGimprovementactivitieswithineachdivision.Established ESG Committee and working-level consultative groups at each division IssuedgreenbondsinFebruary2021toincreaseinvestmentsinfuturemobilityincludingEVsIssued KRW 400 billion in green bondsProvidedsupportsforstakeholders(suppli

202、ers,dealers,employees,andcustomers)HyundaiMotorGroupcontributedKRW120billionworthoffinancialassistanceforsupplierssufferingliquiditycrunches Carriedoutcommunity-basedcontributionactivitiestodealwithCOVID-19atalldomesticandoverseasworkplaces,includingdonationsofdisinfectionandreliefgoodsProvided assi

203、stance for dealing with COVID-19RewroteappointmentrequirementstoincreasediversityandindependenceofBODStrengthened guidelines for appointing BOD membersEnvironmentalSocialGovernance018EnvironmentalTheEuropeanUnion,theU.S.,andKoreahaveallhurriedtoannounceGreenNewDeals,showingthattheenvironmentisbecomi

204、nganexusofglobaleconomicgrowthanddevelopmentfarexceedingtheneedforandlevelofglobalenvironmentalprotectionactivities.Hyundaiiscommittedtoplayingaleadingroleinheadingtheglobalgreeneconomy.Itwilldosobyrealizingsustainablemobilitythatdoesnotnegativelyaffecttheglobalenvironment,expandingtheuseandspreadof

205、hydrogenenergy,andestablishingaclosed-loopmaterialcyclebasedonitsleadingtechnologiesinthefieldsofelectricvehiclesandhydrogenenergy.#EnvironmentalManagement#CarbonReduction#CircularEconomy#ManagementAndReductionOfHarmfulSubstances1 Introduction3 Social4 Governance2 Environmental5 ESG Factbook019Envir

206、onmental Management PolicyHyundaiannouncedthecontentsofitsenvironmentalmanagementpolicyatadeclarationceremonyheldin2003.Itenjoinsthecompanysheadquartersandallitsdomesticandoverseasproductionandsalescorporations,aswellasalltheemployeesofallitssubsidiaries,toperformtheirdutiesinaccordancewithit.Itsemp

207、loyeesarerequiredtocomplywithitevenwhendealingwithitssuppliersandsalesandservicecompanies,includingjointventuresanditsoutsourcingpartners.Promoting Environmental Management OnInvestorDay2020,HyundaiMotorCompanyannouncedourannualtargetsforglobalelectricvehiclemarketshareforeachyearupto2030,witha3%goa

208、lfor2020.Toachievethis,wehaveestablishedandimplementedplanstoclarifythepositioningofourelectricvehiclebrandsandlineups,increasethecommonalityrateofstandardpartstosecurecostlevelssimilartothatforinternalcombustionengines,andpromoteconversiontoelectricvehiclesinrapidlygrowingmarketssuchasEuropeandChin

209、a,amongstothers.Basedontheseefforts,wesold98,054electricvehiclesgloballyin2020toachieveourtargetofobtaininga3%marketshareforthatyear.Environmental Management SystemHyundaiiscommittedtominimizingtheenvironmentalimpactofitsproductsandsitesthroughprogressiveandproactiveenvironmentalmanagementactivities

210、.Withregardtoitsproducts,thecompanyisworkingtoreduceitslevelsofcarbonemissionsandharmfulgasesproducedinitsnewvehicles,systematicallytakingaccountofemissionreductionandmaterialrecyclinginproductdevelopmentstage.Todoso,wedefinethespecificemissionreductionandfuelefficiencytargetsfornewmodelsandmanageth

211、emaskeydevelopingtargetsindevelopingprocess.Wehavebeenrealizingtheenvironmentalimprovementsforonevehiclegenerationtonext,throughtheimplementationoffuture-orientedeco-designsandbymanagingthefuelefficiencylevelsofallitsnewmodels.Aspecializedanddedicatedteamhasbeenestablishedinthecompanyssiteenvironmen

212、tsectorstomanagetheenvironmentsineachofitsproductionplants.Inaddition,allofitssiteshaveacquiredISO14001certifications,andaresubjecttoauditseveryyearandre-certificationseverythree.AllofHyundaissitesinKoreawereawardedintegratedISO14001certificationsin2018,anditsoverseasplantsaresubjecttosurveillanceau

213、ditsandre-certificationeveryyearoncetheyhaveacquiredaninitialone.HyundaiMotorManufacturingIndonesia,whichisscheduledtobeginoperationsattheendof2021,expectstobeawardeditsISO14001certificationearlythenextyear.HyundaiincludestheGHGreductionperformancesofitsdomesticsitesinitskeyperformanceindicators,orK

214、PIs,whilealsooperatingacompany-wideGreenhouseGasCouncilthatoverseesreductionsinitsGHGemissionsatallitsdomesticsites.InitsroleasanenterprisethatissubjecttotherequirementsoftheKoreangovernmentsGHGandEnergyTargetManagementSchemerequirements,HyundaihasbeensetaGHGreductiontargetforitsdomesticsitesandisco

215、mmittedtomeetingiteveryyear.Environmental Management Policy1.Recognizetheenvironmentasakeysuccesselementforthecompany,andcreatecorporatevaluethroughprogressiveandproactiveenvironmentalmanagementactivities.2.Fulfillcorporatesocialresponsibilitiesasadedicatedandspecializedautomobilemanufacturerthrough

216、thedevelopmentanddistributionofenvironmentallyfriendlyvehicles.3.Committothesustainableuseofresourcesandenergyandtoreductionsinpollutantsthroughoutallitsmanufacturingprocesses,fromproductdevelopmenttoproductionandsalestotheirfinaluseanddisposal.4.Supportenvironmentaleducationprogramstargetingallitse

217、mployeesandtheenvironmentalmanagementactivitiesofitssuppliers,andcarryoutafullrangeofcorporatesocialcontributionactivities.5.Complywithalldomesticandoverseasenvironmentalrulesandregulations,promoteandcommittoprogressiveandproactiveenvironmentalmanagementactivities,anddisclosetheresultsofitsactivitie

218、sbothinternallyandexternally.ISO 14001(EMS)CertificationsSiteCertification TermRemarksDomesticsites2020-2023Integratedcertificationsfrom2018HMMA2019-2022-BHMC2018-2021-HMI2020-2023-HMMR2019-2022-HMB2021-2024-HMMC2019-2022-HAOS2018-2021-HMMIScheduled for certification in 2022Scheduledtobeginoperation

219、satendof2021HTBC2020-2023-2.2 Carbon Reduction2.1 Environmental ManagementEnvironmental Management1 Introduction2 Environmental3 Social5 ESG Factbook4 Governance2.3 Circular Economy2.4 Management and Reduction of Harmful Substances020Climate Change:Risks and OpportunitiesHyundaicontinuouslyidentifie

220、s,assesses,andmanagesforriskandopportunityfactorsinitsresponsestoclimatechangeissuesatthecompany-widelevel.ClimatechangeissuesidentifiedbyeachregionandorganizationaredeliveredtotheCorporateStrategyDivisionofitsheadquarters.Afterthat,theDivisionderivesriskandopportunityfactorsforeachissueandassessest

221、hestrategicandfinancialimpactsthateachfactormighthaveonthecompanyinordertoestablishacompany-wideresponsestrategy.Aftercheckingpriorities,significantagendaitemsarereportedtotheBoardofDirectorsand/ormanagement.Actionplansarethenestablishedaccordingtothedecisionsthathavebeenmade.Theplansareimplementedb

222、yeachregionandorganization,withtheprogressoftheirimplementationbeingcontinuouslymonitoredanddiagnosed.1)RenewablePowerGenerationCosts(IRENA,2019),FutureofSolarPhotovoltaic(IRENA,2019),AnnualEnergyOutlook(EIA,2020),WorldEnergyOutlook(IEA,2020),EnergyOutlook(BP,2020)2)NationallyDeterminedContributions

223、:GoalsthatUNmembercountriesvoluntarilydetermineanddiscloseintheareasofreductions,adaptations,finance,technologies,capacitybuilding,transparency,andotherstoachieveglobaltargetssetoutintheParisClimateAgreement.3)OneoffourpossiblescenariosaccordingtothegreenhousegasconcentrationsannouncedintheFifthAsse

224、ssmentReportoftheInternationalPanelonClimateChange(IPCC)tomaintainaglobalaveragetemperatureriseofbelow2comparedtopre-industrialization.4)ThisisthescenarioannouncedinIPCCSpecialReportonGlobalWarmingof1.5C.Net-Zerotolimittheriseintheglobalaveragetemperatureto1.5comparedtopre-industrializationlevelssho

225、uldbeachievedby2050Carbon ReductionClimate Change Risks and Opportunities:Process of Identification,Assessments,and ManagementRecognize company-wide issues related to climate change(Corporate Strategy Division)Find issues related to climate change by region and organizationCheck priorities and estab

226、lish response strategiesSelectagendastobereportedtomanagementReview agendas at Hyundai Management Strategy Meeting(ESG Committee)SelectagendastobereportedtoBODImplement by each region/organizationIdentify risks and opportunities and assess possible impactsClimate change scenarios(transition risks/ph

227、ysical risks)Establish action plansReview agendas with BODs Sustainability Management CommitteeMonitor,measure,and diagnoseKey Considerations when Checking Priorities and Establishing Response Strategies Climate Change Risks and Opportunities:Criteria for Identification and Impact AssessmentsClimate

228、 scenarios in use:TransitionPhysical-Transitionrisks:Forecastingreports1)fromIRENA,EIA,IEA,BP,andNDC2)-Physicalrisks:RCP2.63)ofIPCCAR5(below2scenario)andRCP1.94)(1.5scenario)Scenario analysis:QuantitativeQualitative Application timelines:Short-term(lessthanfiveyears)Medium-term(fivetotenyears)Long-t

229、erm(morethantenyears)Scope of applications:OwnoperationsUpstreamDownstream-Ownoperations:Allglobalownoperations(includingnewones,takingintoconsiderationtheexpectedlifetimeofthefacilities)-Upstream:Supplychain-Downstream:Transportation,use(customer),end-of-lifetreatmentandrecycling2.2 Carbon Reductio

230、n -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental ManagementLikelihood of occurrence(s)Internal response capabilities,etc.Country/region

231、 and industry trendsRelevance to business strategiesMarket changesExpected financial impact(s)1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG Factbook4 Governance2.4 Management and Reduction of Harmful Substances021Key Climate Change Risks/Opportunities and ImpactsTypeOpportunitiesIss

232、uesResponse DirectionsRisksFinancial Impacts1)EnergyStorageSystem2)UrbanAirMobilityIncreaseuseofrenewableenergy IncreaseproportionofEV/FCEVsinvehicleportfolio Improvefuelefficiencyofinternalcombustionenginevehicles Revenuegenerationthroughsaleofspareallowances/credits Increasedoperatingcostsduetopur

233、chasingallowances/creditstoachieveregulatoryorlegalcompliance Emissions Trading System Vehicle CO2 emissions regulationsEstablishregionallydifferentiatedEVexpansionstrategyIncreaseuseofrenewableenergy SalesincreasesduetoenhancedEV/FCEVperformanceandpricecompetitiveness Costsavingsinresponsestoregula

234、tionsthroughenergyconversionsandreductionsinCO2emissions DeclineinsalesduetobanonsalesofinternalcombustionenginevehiclesindevelopedmarketsliketheEUandtheU.S.Riseincostsandshiftstocustomersduetotaxincreases Prohibiting sale of internal combustion engine vehicles Carbon tax/carbon border taxEmergingAc

235、uteChronicCurrentRules and RegulationsPhysicalTechnologiesMarketsReputationsIncreaseinvestmentsinR&DEnhancecompetitivenessofproducts Promotepartnershipswithcompanieswithleadingtechnologies PreemptiveresponsetoFCEVmarketbasedonhydrogenfuelcelltechnologycompetitiveness Decreaseinmarketshareifnotachiev

236、ingsuperiorperformances(EVmileage,FCEVfuelcellefficiency,etc.)comparedtocompetitors Acceleration in competition for technology development for eco-friendly vehiclesBuildmassproductionsystemusingdedicatedEVplatformLaunchEVbrandandbuildadedicatedlineupScaleupFCEV/fuelcells AchievinglargepotentialEV/th

237、esecondlifeEVbatterycustomers,includingcarrental/carsharing/ESS1)companies Newindustrialfuelcell(ship/UAM2)businessexpansionIncreasesalesofEV/FCEVmodels Increaseinprocurementcostsofrawmaterials(lithium,cobalt,nickel)duetolimitedsupplyfollowingrisingdemandforEVbatteries Decreaseinsalesifnotachievings

238、ufficientFCEVprofitability Increase in EV/FCEV sales due to changes in customer preferencesProvideinformationtransparentlySetmid-tolong-termreductiontargetsUtilizegreenfinancing/investments Risingstockprices,increasinginvestments,andenhancingbrandimageduetoclimatechangeresponseactivitiesandreduction

239、performances Fallsinstockprices,withdrawalofinvestors,andcustomerchurnatperceivedlackofwilltorespondtoclimatechange Increase in demand from investors and other stakeholders to respond to climate change Developemergencyresponsemanual(ownoperations/supplychain)ReinforcestabilityoffacilitiesBuyinsuranc

240、eagainstdisasters Developreal-timeinventorymanagementsystemforrawmaterialsandparts Assesssupplierssupplystability Increasedmarketshareduetostableproductsupplywhencomparedtocompetitors Factorydowntimesduetodamagetofacilities(e.g.HMMAisexposedtoatornadorisk)Productiondisruptionsduetodiscontinuanceofra

241、wmaterials/partssupplies Increase in abnormal weather conditions,such as typhoons/floods/heavy snowfallsUsewaterandenergymoreefficientlyDevelopbetterresourcerecyclingandreusetechnologies AssistinincreasingsupplyofdrinkingwaterforthevulnerableindevelopingcountriesPromoteforestconservation Reducedoper

242、atingcostsduetoimprovedresourcesefficiency Attractingpotentialcustomersbysupportinglocalcommunitiesandhelpingthemadapttoclimatechange Earningoffsetcreditsthroughcarbonabsorption Lackofavailableresources(water/energy,etc.)Disruptionofdrinkingwaterinareaswithhighwaterresourcerisks(suchasIndia)Destruct

243、ionofecosystems Changes in average temperatures and precipitationHighHighHighHigh2.2 Carbon Reduction -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1

244、Environmental Management1 Introduction2 EnvironmentalHighMid-high Mid 2.3 Circular Economy3 Social5 ESG Factbook4 Governance2.4 Management and Reduction of Harmful Substances022Carbon(GHG)FootprintHyundaisupportsthegoalsoftheParisAgreementonClimateChange,andrecognizesthattherearecorporaterolesandres

245、ponsibilitiesforachievingglobally-mandatedGHG(GreenhouseGas)emissionsreductions.Thecompanydisclosesemissionsresultingfromitsownbusinessactivities(Scope1andScope2),aswellasupstreamanddownstreamemissions(Scope3)accordingtotheGreenhouseGasProtocol1)inordertomeasureitsGHGemissionsthroughoutitsentirevalu

246、echain.ItisalsocarryingoutawiderangeofotheractivitiestoreduceitsGHGemissions,andwillmanageitsreductionsbycontinuouslymonitoringthem.1)GreenhouseGasProtocoloftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)andtheWorldResourcesInstitute(WRI)*Domesticemissionsonly*Emissionsfromthe“WelltoTank”sta

247、gebeforerefuelingandchargingtheenergythatpowersthevehiclesareexcluded.Totalemissionsincludingthe“WelltoTank”stagein2020amountedto101,203,073tCO2-eq.Thescopeofmanagementwillbeexpandedtoincludethe“WelltoTank”stage.Status of GHG Emissions and Reduction StrategiesScope 1Thisreferstodirectemissionswithin

248、theorganizationalboundariesofthecompany.HyundaiusesLNGasitsmainfuelforplantheatingandheatproductioninitspaintingandotherautomobilemanufacturingprocesses,andLNGcombustionaccountsformostofitsScope1emissions.ItiscontinuouslyreducingitsGHGemissionsbyreducingitslevelofLNGconsumptioninallitsoperations,and

249、iscontinuouslyreviewingwaystoconvertitsLNGusetohydrogeninthelongterm.Scope 2Thistermreferstoindirectemissionscausedbyusingenergypurchasedfromoutsidethecompanysorganizationalboundaries.Emissionsduetoelectricityuse,whichaccountsforabouttwo-thirdsofthecompanystotalScope1+2emissions.Thecompanyisreviewin

250、gvariousalternatives,suchasself-generation,powerpurchaseagreements(PPAs),andsupplycertificatepurchasesinordertoconverttheelectricityusedinitsoperationsintorenewableenergy.Hyundaiisplanningtopursuethesealternativeswithafocusonitsoverseassubsidiariesusingadvancedrenewableenergyinfrastructuresandlessin

251、stitutionalconstraints.InthecaseofHyundaiMotorIndia(HMI),ithasconvertedabout28%ofitstotalelectricityconsumptiontorenewableenergy.Thiswasmainlydonebygeneratingphotovoltaicpowerandpurchasingwindpower-basedelectricity.Scope 3ThisincludestotalindirectemissionsalongthevaluechainexceptforScope1andScope2,a

252、ndemissionsgeneratedbytheuseofsoldvehicles,whichaccountsforover80%oftheentireScope3total.Thishasledthecompanytoestablishastrategytoreduceemissionswhenavehicleisactuallybeingdriven,andtocontinuouslyimprovethefuelefficiencyofitsinternalcombustionenginevehicles.Goingforward,itwillgraduallyincreaseitspr

253、oportionofEVsandFCEVsintheglobalmarket.OthereffortstoreduceemissionlevelsfromtheoverallvaluechainincludesigningbusinessagreementswiththecentralgovernmentandHyundaiGlovisfortheintroductionandexpansionofhydrogen-poweredtrucksinthetransportationandlogisticssector.Thecompanyhasalsoestablishedstrategiest

254、oreducetheGHGemissionslevelsofitssupplychain,includingrawmaterials,whileusingrecycledmaterialsandpromotingtherecyclingandreuseofwasteEVbatteries.GHG Emissions 2018-2020ScopeAnnual emissions(tCO2-eq)201820192020Scope1(directemissions)885,653807,498716,237Scope2(indirectemissions)1,936,9021,897,885 1,

255、680,079Scope 1+22,822,555 2,705,383 2,396,316Scope3(otherindirectemissions)UpstreamSupplychain20,701,283 20,024,630 17,014,155 Capitalgoods*268 265 22 Otherenergy-relatedactivities*102,005 97,25393,518Wastegeneratedduringoperations*2,047 2,053 1,760 BusinessTravel*38,046 24,8365,222EmployeeCommuting

256、*13,944 15,09314,314DownstreamTransportationanddistribution*845,987 954,579655,831Usesofsoldvehicles*101,946,509 94,210,414 75,620,514 End-of-lifetreatmentofsoldvehicles124,917 120,833 102,668Leasedassets*1,528 4,1263,325Investments*378,356 394,946369,926Scope 3124,154,890115,849,03093,881,2552.2 Ca

257、rbon Reduction -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental Management1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG

258、Factbook4 Governance2.4 Management and Reduction of Harmful Substances023Expanding Electrified Vehicle Lineup and Sales Hyundaiiscontinuouslyexpandingitslineupofeco-friendlyvehiclesaspartofitsstrategyforreducingemissionsandachievinganetzerocarbonlevelinallitsproducts.Theyincludehybridandplug-inhybri

259、dcarsboastinghigherfuelefficiencylevelsthanvehiclespoweredbyinternalcombustionengines,aswellasEVsandFCEVsthatdonotemitcarbonorotheremissionsduringthedrivingstage.Hybrids and Plug-in Hybrids(HEVs and PHEVs)Hybridsareeco-friendlyvehicleswithhigherfuelefficiencylevelsthanonespoweredbyinternalcombustion

260、engines.HyundaisSONATAhybridmodel,forexample,boastsacarbonemissionslevelofonly79g/kminitsbasedomesticversion,39%lessthanitsgasoline-poweredequivalents131g/km.ThecompanysellshybridversionsofallitssedansandSUVs,exceptforlargeSUVsandsubcompacts.TheKONAHybridmodelwasintroducedin2019,toreducecarbonemissi

261、onsfromSUVs,whichemitmorecarbonthansedans.OtherSUVmodelsboastingdramaticallyreducedcarbonemissionsincludetheTUCSONandSANTAHybrids.Inthecaseofplug-inhybridswhichareevenmorefuel-efficientthanhybridsthecompanylaunchedtheIONIQPlug-InHybridin2016,theSONATAPlug-InHybridin2017,andtheTUCSONandSANTAFePlug-In

262、Hybridsin2021.Electric Vehicles(EVs)Eco-friendlyzero-emissionEVs,alongwithFCEVs,donotcreateanyemissionswhiletheyarebeingdriven.HyundaibeganmarketingtheminearnestwiththelaunchofitsIONIQmodel,whichcomesinhybrid,plug-inhybrid,andEVversions,in2016.ItalsobeganofferingtheKONAEV,theautomotiveindustrysfirst

263、SUVEVmodel,in2018.ItfollowedthatupbylaunchingtheIONIQ5,thefirstall-electricEVmodelbasedontheElectric-GlobalModularPlatform(E-GMP),in2021,andiscurrentlypreparingforafull-outlaunchofluxuryEVsastheGENESISbrand.PlansareintheworkstolaunchmorethantwelveE-GMP-basedEVmodels,includingtheGenesisbrand,by2025.F

264、uel Cell Electric Vehicles(FCEVs)HyundaibeganofferingtheworldsfirstTUCSONixFCEVin2013anditsNEXOFCEVin2018.TheNEXOFCEVcamewithanext-generationfuelcellsystem,boastingperformanceanddurabilityequivalenttointernalcombustion-poweredvehicles.ThecompanybeganofferingFCEVcommercialvehiclesin2020,includingthem

265、assproductionofhydrogen-poweredelectricbusesandthedevelopmentofahydrogen-poweredelectrictruckcalledtheXcientFuelCell.Milestones in Hyundais Electrified Vehicle Development2004LaunchedfirstHEVvehicle2018LaunchedKONAEV,thefirstpopular-brandSUVEV2010Developed“BlueOn”EV,capableofhigh-speeddriving2019Lau

266、nchedNEXOFCEV,boastingsignificantlyimprovedperformance2013BegantheworldsfirstmassproductionofTUCSONixFCEV2021LaunchedIONIQ5,builtonanEV-onlyplatformLaunchedfirstGENESISEV2016LaunchedIONIQelectrifiedmodelsinHEV,PHEV,andEVversions2025Plantosell560,000EVs2027Plantomass-produceEVsequippedwithall-solid-s

267、tatebatteriesCarbon Reduction in Product UsageTheInternationalEnergyAgencyhascalculatedthatcarbonemissionsfromthetransportsectormakeupabout20%ofglobalcarbonemissions.Morethan70%ofthiscomesfromroadtraffic.Hyundaiiscontinuouslymakingitsefforttoreducetheaveragefleetcarbonemissionstoreducesuchemissionsi

268、nthetransportsector.However,wehavetopursuethecarbonneutralitytocontributetoaccomplishParisAgreementgoal,limitingglobalwarmingtowellbelow2,preferablyto1.5degreesCelsius,comparedtopre-industriallevels.Hyundaiisconvertingitsproductandbusinessstructurescenteredonvehiclesequippedwithinternalcombustioneng

269、inestofocusonelectricvehiclestorealizezerocarbonemissioninproductusage.Thistransitionisscheduledtobefullyachievedinitskeymarketsby2040,bywhichtimethecompanyaimstosecurean8%to10%shareoftheglobalEVmarket.ThecompanyslineupchangetoEVsisscheduledtohappeninsuchkeymarketsasEurope,ChinaandtheU.S.beginningin

270、2030.Althoughitwillalsomaintainsomeproductioncapacityforinternalcombustion-poweredvehiclesinIndia,Russia,Brazilandotheremergingcountries,theirproportionwillbelessthan50%.ItsGENESISbrandisalsostudyingelectrificationplans,suchaslaunchingall-electricandvariantEVmodels.Hyundais Roadmap to Reduce Carbon

271、Emissions in Product UsageTransition to EVs centering on Europe and China100%transition to EVs in key markets203020401007550250203520302025202032040Global EV market share goal(Unit:%)421873Targeting an 8-10%share of global EV market by 204010Proportion of EVs in Hyundai vehicles on sale2.2 Carbon Re

272、duction-Climate Change:Risks and Opportunities-Carbon(GHG)Footprint-Carbon Reduction in Product Usage-Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites-Building a Hydrogen Ecosystem2.1 Environmental Management1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG Factbook4 Go

273、vernance2.4 Management and Reduction of Harmful Substances024181.8Additional Technologies to Enhance Vehicle Fuel EconomyHyundaiistakingaseriesofstepstoimprovethefuelefficiencylevelsofallitsnewinternalcombustion-poweredvehiclesandreducecarbonemissionsfromitsproducts.Inordertodoso,thecompanyisalsored

274、ucingtheirtirerollingresistance,makingtheirdesignsmoreaerodynamic.Reducingtheweightofvehiclesisakeytechnologytoimprovethefuelefficiencyofinternalcombustion-poweredvehiclesandEVs,aswellastheirperformance.Thethird-generationGENESISG80thatwaslaunchedin2020isaprimeexampleoftheseimprovements.Itboastsawid

275、erangeoftechnologiestoincreaseitsfuelefficiencycomparedtoitssecond-generationversion.Forinstance,itsfuelefficiencylevelismorethan20%higher,mainlyasaresultofenginedownsizing,aerodynamicanddrivingresistanceimprovements,andreductionsinitsweight.Reducingitsweightcontributedtoimprovementsinitsfuelefficie

276、ncy.Itwasreducedbyupto125kg,eventhoughthecarsfeatures,includingadvancedconvenienceandsafetyoptions,wereenhancedcomparedtoitspreviousmodels.Aluminumandotherlightweightmaterialsarenowusedinitshoods,doors,andsuspensionparts,andtherearemoreultra-high-strengthsteelsheetsbeingusedinitsbodyandseatframes.It

277、spowertrainweighthasalsobeenreducedbydownsizingitsenginefrom3.3GDIto2.5turboGDI.Thestructuresofmostofitsparts,includingitswiring,werealsoimprovedandoptimizedtoachieveweightreduction.Thecompanywillcontinuedevelopingandapplyinglightweighttechnologiestoincreaseperformanceinallofitsvehicles,andtoprovide

278、itscustomerswithdifferentiatedproductsbyefficientlyusingresources.Hyundaihasbeencontinuouslyincreasingitsglobalelectrifiedvehiclesalestoreduceitscarbonemissioninproductusage.Itsannualelectrifiedvehiclesalesin2020amountedto258,669,or7%ofitsglobaltotal.YearlysalesofEVsandFCEVsexceeded100,000in2020,lea

279、dingtheglobalEVandFCEVmarkets.ThesalesportionofHyundaiselectrifiedvehiclesinEuropereached24%in2020.ThecompanyhadsetagoaltoachievetheglobalEVsalesof560,000unitsby2025.Number and Proportion of Electrified Vehicles Sold in 2020*ExcludingcommercialvehiclesRegionHEVs/PHEVs EVsFCEVsTotalEurope47,274(10%)6

280、0,861(13%)589(0.1%)108,135(24%)Korea66,181(9%)18,612(2%)5,786(0.7%)90,579(12%)Global154,015(4%)98,054(3%)6,600(0.2%)258,669(7%)Non-pollutingrenewableenergyisanincreasinglyimportanttopicastheworldtriestomoveawayfromfossilfuels.Solarpowergenerationisoneofthemostcommontypesofrenewableenergy.Hyundaiisus

281、ingsolarpowergenerationtechnologyinsomeofitsvehiclestoreducetheircarbonemissions.Forexample,itisalreadyusingaroofmountedsolarpowergenerationsystemonitseighth-generationSONATAHybrid,allowingittobedrivenabout1,300kmayearwithoutproducinganycarbonemissions.Thecompanyisalsoaddingmorevehiclesthatcanusesol

282、arenergybyapplyingthistechnologytoitsIONIQ5andGENESISbrandEVstobereleasedin2021.Hyundaiisworkinghardtoreducecarbonemissionsinitsvehiclesinproductusagebyharnessingmorerenewableenergy.Hyundaiisalsostudyingtoraisethedensitylevelsofitssolarcellsandboosttheirperformancetomakethetechnologymoreviable.Hyund

283、ai Motor Groups Cumulative Electrified Vehicle Sales(Unit:10,000 vehicles)2001501005002011201520162017201820192020135.0101.171.646.033.14.42.2 Carbon Reduction -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Ca

284、rbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental Management1 Introduction2 Environmental2.3 Circular EconomyGenesisG80PowertrainWeightReductionGenesisG80Subframe&CrossmemberAluminumPartsUsedinGenesisG802.5Turbo-poweredGasEngine2-axisNon-parallelTransmissionTransferFrontSubfram

285、eRearCrossmembersHighvacuumdiecastingGravityhollowcastingHoodShockAbsorberHousingTrunkLidDoor19%morelightweightmaterials,includingaluminumonthebody23.2kg2.1kg3.2kg6.2kg62.1kg3 Social5 ESG Factbook4 Governance2.4 Management and Reduction of Harmful Substances025Average Fleet Fuel Efficiency in ChinaA

286、verage Fleet Fuel Efficiency in the U.S.Average Fleet Carbon Emission in EU*TheEUsaveragecarbonemissionsdatafor2010and2017-2019reflectedaverageCO2emissionscalculatedanddisclosedbyEuropeanCommission,while2020dataisaprojectdatacalculatedbyHyundaibasedonitssalesunits.*AveragefuelefficiencynumbersintheU

287、.S.andChinaarebasedontheaveragefuelefficiencyofeachautomobilemanufacturerintheirmarketsasprovidedbytheirrespectivegovernmentagencieseveryyear.(Unit:L/100km)(Unit:mpg)(Unit:g/km)7501402017201720182018201920192020202020102017201920182020 6.540105530705.52035010094.7123.5124.3126.91345.616.286.006.4740

288、.029.438.527.238.527.138.927.3Passenger carsLight trucksAverage Fleet Carbon EmissionUndertheParisAgreement,countriesareobligatedtosubmittheir2030emissionreductiontargets(referredtoasaNationallyDeterminedContribution).TheEuropeanCommissionpresenteditsplantoreduceEUgreenhousegasemissionsbyatleast55%b

289、y2030,comparedto1990levelsin2019.KoreasubmittedanNDCof24.4%emissioncutbelow2017levelby2030lastDecember.Theyarealsostrengtheningtheircarbonregulationsintheautomobilesectortohelpachievethesegoals.TheEuropeanUnionboaststhemoststringentautomotiveCO2reductiontargetsforpassengercars,settinga2030carbonredu

290、ctiongoalof59g/km,37.5%lowerthanthe2021figureof95g/km.TheKoreangovernmentsgoalistolowerthecountrysaverageCO2emissionsfrom97g/kmin2020to70g/kmin2030.TheU.S.ispushingaplantoincreasetheCorporateAverageFuelEconomytargetthathadbeenrelaxedbytheformerTrumpadministrationbyatleast3.7%annually,whileitsCalifor

291、niastategovernmentisevenintensifyingitszeroemissionvehiclesalesmandatetarget.InresponsetotheseconstantlytighteningCO2regulationsinmanyofitsmajormarkets,Hyundaiisplanningtominimizeregulatoryrisksby2030.Itwilldothisbyexpandingtheportionofitselectrifiedvehiclessold,andthusreducingtheaveragecarbonemissi

292、onsofallitsvehicles.Hyundaiistargetingzerocarbonemissionsinproductusageoverthelongterm.IntheEuropeanmarket,wherethestrongestregulationshavebeenimplemented,thecompanyisestimatedtoachieveanaveragepassengerfleetCO2emissionslevelof94.7g/kmin2020,areductionofabout30%from134g/kmin2010.Thiswasaresultofitso

293、wnanalysesoftheaverageCO2emissionsofitsvehiclessoldin2020.ThecompanyiscontinuouslyexpandingitselectrifiedvehiclessalesandimprovingthefuelefficiencyofitsinternalcombustionenginestomeetaveragefuelefficiencyregulationsintheU.S.,China,Korea,India,SaudiArabia,Brazil,andothercountries.2.2 Carbon Reduction

294、 -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental Management1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG Factbook4 Gove

295、rnance2.4 Management and Reduction of Harmful Substances026Conducting Life Cycle Assessments(LCAs)Hyundaiconductslifecycleassessments,orLCAs,basedonISO14040and140441)internationalstandards.Thepurposeoftheassessmentsistoanalyzetheenvironmentalimpactsofitsvehiclesduringtheirentirelifecycle,fromtheacqu

296、isitionofrawmaterialstomanufacturing,use,end-of-lifetreatmentandrecycling.TheLCAsusetheCML2)methodologytoevaluatesuchareasasglobalwarming,ozonedepletion,acidification,eutrophication,photochemicalozoneformation,resourcedepletion,andwaterdepletion,inaccordancewiththeMinistryofEnvironmentsguidelinesfor

297、thepreparationofanEnvironmentalProductDeclaration.ThecompanycarriedoutanentireLCAprocessonitsKONAEVin2020,andplanstoexpanditstargetvehicletypesgoingforward.ItwillcontinuetoconductvehicleLCAanalysestoaddressenvironmentalimpactsthroughouttheirlifecycle,basedonthis.Environmental Impacts covered by LCAs

298、Assessmentsoftheenvironmentalimpactsofautomobilesaredirectedatdeterminingtheireffectson(1)ecologicalconsequencesincludingglobalwarming,(2)resourcesandwateruse,and(3)humanhealth.HyundaiwillcontinuetoreducetheenvironmentalimpactsofitsnewproductsbyusingitsLCAresults.The KONA EVs Impacts on Global Warmi

299、ng(Carbon Emissions)Over its Life CycleTheresultsoftheKONAEVsLCAwerethatitslife-cyclestagescontributedtoglobalwarmingintheareasofuse(63.9%),pre-manufacturing(34.4%),andmanufacturing(1.2%).Theimpactscanbegraduallyreducedbyincreasingtheamountofrenewableenergyusedduringpowergenerationintheareasofuse.1)

300、ISO14040(EnvironmentalmanagementLifeCycleAssessmentPrincipleandframework)/ISO14044(EnvironmentalmanagementLifeCycleAssessmentRequirementsandguidelines)2)CML:CentrumvoorMilieukundeLeiden*KONAEVLCA:BasedonproductionanduseinKoreaandamileageof200,000kmImpacts on carbon emissions by life-cycle stagesEcol

301、ogical ConsequencesGlobal WarmingAcidificationPhotochemical Ozone FormationEutrophicationOzone DepletionPre-manufacturingTransportationManufacturingDistributionEnd-of-life treatment and recycling 34.4%0.1%1.2%0.1%63.9%0.3%Power generation Human HealthHuman ToxicityResources and Water UseAbiotic Depl

302、etionWater DepletionUse(including electricity production)2.2 Carbon Reduction -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental Management

303、1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG Factbook4 Governance2.4 Management and Reduction of Harmful Substances027Carbon Reduction at SitesCarbon Reduction and Increased Use of Renewable Energy at Plants HyundaiiscarryingoutanumberofactivitiestoreducetheamountofGHGemissionsprod

304、ucedbyitsmanufacturingprocesses.ItisdoingthistoassistineffortsbytheinternationalcommunityandKoreascentralgovernmenttodealwiththeproblemofclimatechange.Thecompanysactionsincludecontinuingwithitsenergyreductionactivities(suchastheintroductionofhigh-efficiencyfacilitiesandmanufacturingprocessimprovemen

305、tsatallitsplants)andbuildingeco-friendlyplantsbyconvertingthemtorenewableenergysourceslikephotovoltaicpower.Ulsan PlantHyundaisUlsanPlantrecentlycompletedtheinstallationofa9MWphotovoltaicpowergenerationfacilityincollaborationwithKoreaHydro&NuclearPower,aKoreangovernment-ownedpowergenerationenterpris

306、e.TheplantisalsoundertakingademonstrationprojectthatinvolvesinstallingarecycledthesecondlifeEVbatteryenergystoragesystemandlinkingittoitsphotovoltaicgenerationsystem.Asan PlantHyundaisAsanPlantistakingstepstoreduceitsequipmentuseduringthedown-timesthatfrequentlyoccurduringitsmanufacturingprocesses.I

307、talsoreduceditsGHGemissionsbymakingmotorcontrolandinverterapplicationstoitsfacilitiesin2020.Italsocarriesoutconstantmonitoringofitsequipmenttoreduceenergyleakages,andpracticesdailyenergy-savingactivitiesbyadoptingpower-savingcircuitsinitscommunityfacilities.Jeonju PlantHyundaisJeonjuPlantisdevelopin

308、geco-friendlyconstructionmethodsthatwillminimizetheamountofenergyusedatitsproductionfacilitiesinordertoreduceitsGHGemissions.Itisalsobuildingproduction-linkedautomationfacilities.Itlowereditselectricityandgasusein2020byimprovingitscleaningworkprocessesinthetruckpaintshoptooptimizeinternaltemperature

309、s,andchangeditsoldabsorption-typeheatingandcoolingsystemtoahigh-efficiencyelectricheatpumpone.Beijing Hyundai Motor Company(BHMC)BHMCisoptimizingtheoperationsofitsproductionfacilitiestoreduceitsamountofdown-time.IthasreduceditsGHGemissionsbyreducingitsuseofcompressorsandotherenergy-consumingequipmen

310、tduringitsproductionscheduletimes.Hyundai Motor Brazil(HMB)HMBisusingasystemthatoptimizesitsuseofcompressedair.ItisreducingitsGHGemissionsthroughanumberofenergyconservationactivities,includingbuildinghigh-efficiencyfacilitiesandusingLEDlighting.Hyundai Motor Manufacturing Czech(HMMC)HMMChasestablish

311、edanenergyreductionandconversionplantohelpitreduceitsGHGemissions.Itisalsobuildingamonitoringsystemtomeasuretheamountoffuelitusesduringitsmanufacturingprocesses.Itisscheduledforcompletionin2021.Itisalsopromotingan“RE100”plan,meaningthe100%conversionofitselectricenergyusetorenewableenergy.Hyundai Mot

312、or Manufacturing Alabama(HMMA)HMMAisreducingitsGHGemissionsbyminimizingtheamountofwasteenergyitproduces.Itdoesthisbyautomaticallymaintainingappropriatetemperaturesthroughtheuseofitscoolingandheatingmonitoringsystem.Hyundai Assan Otomotiv Sanayi(HAOS)HAOSinTurkeyisreducingitsGHGemissionsbyimprovingit

313、sprocessesandintroducingstate-of-the-artenergyreductionequipment.Itisreducingitsuseofcompressedair,optimizingitsweldingprocesses,andinstallinghigh-efficiencyinverters.Hyundai Motor India(HMI)About84%oftheelectricitythatHMIusesinitsplantcomesfromeco-friendlyenergysources-windpower20%,solarpower8%,was

314、teincinerationandcogeneration56%.Italsooperatesa0.69MWsolarpowerplant,andisplanningtoinstalla10MWphotovoltaicpowergenerator(5%oftotalusage)onitsroofby2021.Hyundai Motor Manufacturing Russia(HMMR)HMMRisreducingitsGHGemissionsbyreplacingthefluorescentlightinginitsofficeandproductionareaswithhigh-effic

315、iencyLEDlighting.Allofitsofficespacesandabout38%ofitsplantslightingwerereplacedin2020.Theentireplantisscheduledforsuchalterationsby2024.Energyconsumptionduringholidayshutdownswillbereducedbyupgradingitscompressedairsupplysystemin2021.Hyundai Motor Manufacturing Indonesia(HMMI)HMMIinstalleda3.2MWphot

316、ovoltaicpowerfacilityandhascompletedthepaperworkneededforUNFCCC1)sPriorConsiderationofitsCDM2)project.ThefacilitybeganoperationsinApril2021.Theelectricityproducedthereisusedasanenergysourcefortheplant.Photovoltaic power generation in Hyundais plant in India1)UnitedNationsFrameworkConventiononClimate

317、Change(UNFCCC):AninternationalconventionadoptedattheRioConferenceinJune1992tohelpdealwithclimatechangecausedbyglobalwarming.2)CleanDevelopmentMechanism:AUnitedNations-runcarbonoffsetschemeallowingdevelopedcountriestofundgreenhousegasemissions-reducingprojectsindevelopingcountriesandclaimthesavedemis

318、sionsaspartoftheirowneffortstomeetinternationalemissionstargets.2.2 Carbon Reduction -Climate Change:Risks and Opportunities -Carbon(GHG)Footprint -Carbon Reduction in Product Usage -Conducting Life Cycle Assessments(LCAs)-Carbon Reduction at Sites -Building a Hydrogen Ecosystem2.1 Environmental Man

319、agement1 Introduction2 Environmental2.3 Circular Economy3 Social5 ESG Factbook4 Governance2.4 Management and Reduction of Harmful Substances028Building a Hydrogen EcosystemThetransitionfromfossilfuelstorenewableenergyisnecessarytoachievecarbonneutrality.Theuseofhydrogenasafutureenergysourceisespecia

320、llyimportant,becauseitcancompensateforinstabilitiesinthesupplyofotherrenewableenergysourceslikewindpowerandsolarpower.Anumberofdevelopedcountries,includingtheU.S.,Germany,andJapan,havebeenpromotinghydrogenecosystemsrecently.HyundaiboastsadvancedtechnologiesinthefieldoffuelcellandFCEV,andthisincludes

321、thedevelopmentoffuelcellsystems,since1998,culminatingintheproductionoftheworldsfirstFCEVsin2013.Workingfromitsexperienceandexpertiseinthesetechnologies,thecompanywillcontinueleadingthewayinbuildingahydrogen-relatedindustrialecosystem,rangingfromeco-friendlyhydrogenfuelproductionsuchasgreenhydrogenpr

322、oductiontostablestorageanddistribution,aswellastheexpansionofhydrogenmobility,suchasFCEV,hydrogentrucks,andhydrogentrains.Thecompanywillalsobegindevelopingabluehydrogenproductiontechnologyin2021foruseincombinationwithcarboncapturetechnologies.Thiswillhopefullylowerthecostofhydrogenproductionandhelpt

323、oresolvetheongoingCO2emissionsissueofusinggrayhydrogen.Promoting the Growth of a Global Hydrogen EcosystemHyundaiisstrengtheningitscooperationwiththeINEOSGroupoftheUnitedKingdom,aglobalmanufacturerofchemicals,specialtychemicals,andoilproducts,tobuildaglobalhydrogenecosystem.Thiswillallowthecompanyto

324、buildanintegratedhydrogenvaluechain,rangingfromhydrogenproduction,supply,andstoragetoFCEVdevelopmentandfuelcellsystemsutilization,allbasedonHyundaisfuelcellsystemtechnologiesandtheINEOSGroupschemicalexpertise.Thehoped-forresultwillbethecreationofaglobalhydrogenecosystemthatwillencouragebusinessexpan

325、sionbyboththepublicandprivatesectors.BecauseEuropehasquicklybecomealeaderinthedevelopmentofahydrogeneconomy,thetwocompanieshaveformedaconsultativebodycomprisingkeyofficialsfrombothparties,andareworkingwithittoexploreimmediatebusinessopportunitiesinclosecooperationwiththeEuropeanUnion,countriesintheE

326、U,andprivateenterprises.Jointly Developing an LPG reformerHyundaiispromotingthejointdevelopmentofanLPGreformerincooperationwithSaudiAramcoasanothermeansofadvancingthedevelopmentofhydrogenenergy.SaudiAramco,foritspart,wishestodevelopahydrogenproductiontechnologyusingitsmanifoldpetroleumresourcesandgr

327、owitintoaglobalbusiness.ThisiswhyitiscurrentlydiscussingthepossibilityofcooperatingindevelopinganLPGreformerincombinationwithHyundaisreformertechnology.Thetwocompaniesdecidedonajointdevelopmentagreement(JDA)scheduletobegininJuly2021.TheyhadalreadyconfirmedtheirrolesandresponsibilitiesinMarch2021.The

328、jointlydevelopedLPGreformerwillbetestedin2022usinganLPGchargingstation.Expanding Hydrogen MobilityHyundaisoldatotalof6,600NEXOFCEVsintheglobalmarketasof2020,a36%increasefromthepreviousyear.Inaddition,itiscurrentlyleadingtheglobalFCEVmarketwitha69%share.Withregardtothecommercialvehiclemarket,Hyundaiw

329、illcontinuetoincreaseitsexportsofhydrogen-poweredelectrictrucksthatfirststartedwithsending140XcientstoSwitzerlandin2021.Onehundredhydrogen-poweredelectricbuseswereoperatinginKoreaattheendof2020,andthenumberisprojectedtoeventuallyrisetotwohundredbytheendof2021.Hyundaiisplanningtocontinuallyincreaseit

330、ssupplyofFCEVsbybuildingaproductioncapacitytomanufacture500,000unitsayearinKorea,includingbothpassengerandcommercialvehicles.Inthemid-tolong-term,itwillincreasehydrogenmobilityinsuchnon-automotiveareasashydrogenelectricships,hydrogenelectrictrains,andhydrogenelectricUrbanAirMobility(UAM).Inthecaseof

331、UAM,itispromotingthedevelopmentofhydrogenfuelcellpowertrainsforaviation,sinceitrequireshighpowerdensity.Thecompanyisalsopromotingthedevelopmentofhydrogenconstructionequipmentproducts,suchashydrogenelectricexcavatorsandhydrogenelectricforklifts.Encouraging Collaboration to Develop a Green Hydrogen Ec

332、onomyAccordingtotheInternationalEnergyAgency,greyhydrogenextractedfromfossilfuelslikenaturalgasandotherby-productgasesaccountsforabout96%ofallhydrogensources,withcarbonbeingemittedduringitsproduction.Thismeansthatamajorissueisdetermininghowtoconvertthistogreenhydrogen.Hyundaiisworkingwithanumberofco

333、mpaniesspecializinginthisareatofindouthowtoproducegreenhydrogenfromrenewableenergy-basedwaterelectrolyzersandammoniaandmaketheprocesseconomicallyfeasible.OneofthesepartnersiscalledH2Pro.Workiscurrentlyunderwaywithittodevelopahigh-efficiencywaterelectrolysistechnologythatwillmakethedevelopmentofgreenhydrogenprofitable.Thecompanyhasproduceda1kg/daywaterelectrolysissystem,andconfirmeditsperformancein