Supply Chain Pivotal to Hyundai's Net-Zero Ambition

Hyundai Motor Company’s 2025 Sustainability Report, Road to Sustainability, highlights the company’s strategic integration of ESG principles that influence its global supply chain, with a focus on attaining carbon neutrality by 2045.

It's a vision reinforced through electrification, a transparent supply chain and governance influenced by stakeholders.

Despite facing economic challenges and global regulatory pressures, Hyundai has managed to set benchmarks in sustainable mobility, marking a transformation that affects how it manages and optimises its supply chain and logistics operations.

Environmental sustainability

Hyundai’s commitment to minimising environmental footprint is evident through its targeted milestone of achieving net-zero emissions by 2045.

In 2024, Hyundai recorded GHG emissions of over 2.1 million tCO₂e in Scope 1 and 2 emissions, and continues to reform its supply chain to tackle upstream Scope 3 emissions.

By signing renewable power agreements in key regions such as Korea, India and the US, Hyundai aims to reach 100% renewable electricity across all sites.

The company implements water management strategies, including zero-liquid discharge systems and rainwater harvesting, particularly focusing on areas with high environmental risk like India, to ensure resource efficiency and production sustainability.

Electrification and clean mobility

Central to Hyundai's sustainability is its electric vehicle (EV) strategy.

Having sold 218,504 EVs in 2024, Hyundai aspires to reach two million annual EV sales by 2030, underpinned by 21 new models and expanded manufacturing in North America, Europe, and Asia.

The expansion not only scales production but also diversifies its supply chain to support regulatory compliance.

Hyundai showcases advanced manufacturing through its Singapore and Georgia plants, which utilise renewable energy and digital systems to augment global production while decreasing the carbon footprint.

Green manufacturing and efficiency

In pursuit of energy efficiency, Hyundai has introduced low-temperature paint curing technology, reducing energy use by up to 40%. At the Asan plant, this innovation saved more than US$1bn annually and reduced carbon emissions by more than 2,450 tonnes.

It forms part of a broader move towards intelligent manufacturing ecosystems that incorporate AI, digital twins and predictive energy management.

“At the heart of Hyundai’s vision is our commitment to sustainability,” says José Muñoz, President and CEO of Hyundai Motor Company.

“Our Sustainability Report provides a snapshot of our performance in categories critical to our governance and to future generations. We're working diligently to reduce the environmental impact of our vehicles and manufacturing processes throughout their lifecycle.

"Our commitment to achieving 100% renewable energy (RE100) across our businesses is taking shape through large-scale renewable energy purchase agreements in Korea, the US and India. We're also maximising water recycling and working toward our ultimate goal of carbon neutrality by 2045.”

Social sustainability and human rights

Social sustainability is a key component of Hyundai's supply chain practices, with initiatives aimed at enhancing diversity and inclusion within its workforce.

The company plans to achieve a 27% female representation in management roles outside Korea by 2030 and a 15% goal within Korea. Furthermore, Hyundai commits to hiring over 450 individuals with disabilities by 2027.

In human rights, Hyundai has assessed ESG risks for 1,120 overseas suppliers, updated procurement codes and expanded human rights training across 74 global sites, aligning practices with international laws and enhancing supply chain integrity.

Governance and ethics

Hyundai continues to refine its governance structure, enhancing board oversight by introducing a lead independent director and increasing female board representation to 33%.

ESG performance is now a component of executive KPIs, overseen by the board-level Sustainability Management Committee.

The establishment of a Business Risk Management Group reporting directly to the CEO supports the integration of ESG risks into long-term business strategies, ensuring Hyundai's supply chain remains agile amid global geopolitical and climate-related disruptions.

Stakeholder engagement

Hyundai engages a broad spectrum of stakeholders through numerous forums, ensuring transparency and collaboration within its supply chain.

Amid evolving investor expectations, stakeholders are particularly interested in Hyundai's progress towards its net-zero emissions targets and efforts in aligning EV production with ethical supply chain practices.

“I am delighted to see Hyundai's ELEC City electric buses running here on Yakushima, contributing towards a cleaner island environment,” states Jaehoon Chang, Hyundai Motor Group Vice Chair.

This initiative underscores Hyundai’s role in advancing sustainability within its operations and broader supply chains.

As Hyundai navigates the complexities of supply chain governance, transparency and technological deployment, its focus remains on building a resilient and sustainable supply chain that supports holistic business transformation.