Hyundai Rotem Achieves ESG Comprehensive Evaluation Grade A for Two Consecutive Years

Maintaining 'Excellent' in Company-wide Sustainable Management Activities Despite Evaluation Method Revamp
"Leading ESG Company by Promoting Eco-friendly Product Lines"

Perspective view of Hyundai Rotem's hydrogen electric tram

[Asia Economy Reporter Park Sun-mi] Hyundai Rotem has been recognized for its sustainable management achievements by receiving an A grade in the ESG (Environmental, Social, Governance) comprehensive evaluation for the second consecutive year.

Hyundai Rotem announced on the 30th that it received an integrated A (Excellent) grade in the "2022 Listed Companies ESG Evaluation and Grade Announcement Results" published by the Korea Corporate Governance Service (KCGS). Since 2011, KCGS's ESG ratings have evaluated the environmental (E), social (S), and governance (G) levels of domestic listed companies to encourage sustainable management and help stakeholders understand the companies' ESG management levels.

Hyundai Rotem received an A+ (Very Excellent) grade in the social sector, the same as last year, and A (Excellent) grades in both the environmental and governance sectors. Since achieving an integrated A grade for the first time last year, it has maintained the same grade for two consecutive years, demonstrating excellent ESG management performance.

In particular, this year KCGS conducted a rigorous evaluation by raising the difficulty level of evaluation items across all sectors to reflect the global trend emphasizing sustainable management. The total number of companies awarded an A grade this year was 116, a decrease of 55 companies (about 32%) compared to last year (171 companies).

However, Hyundai Rotem succeeded in maintaining its grade thanks to company-wide efforts such as creating social and economic value, advancing human resource management and governance systems, and investing in and developing eco-friendly products.

First, in the environmental sector, Hyundai Rotem strengthened its entire business portfolio centered on eco-friendly products such as hydrogen electric trams, hydrogen infrastructure, and high-speed trains. Additionally, last year, it became the first domestic heavy industry company to declare support for the TCFD (Task Force on Climate-related Financial Disclosures), and in this year's "2022 Sustainable Management Report," it disclosed the financial impacts and response strategies related to greenhouse gas emissions and energy usage according to the TCFD guidelines.

In the social sector, Hyundai Rotem appointed a Chief Safety Officer (CSO) and established a company-wide safety management organization to strengthen safety and health management. It also set up a support system to help partner companies expand sustainable management. Furthermore, through an ESG-related company-wide management council, it manages the implementation performance of sustainable management tasks, and by operating a Transparency Management Committee under the board of directors, it has established a proactive risk management process including enhancing internal transaction transparency and monitoring compliance with the Fair Trade Autonomous Compliance Program.

A Hyundai Rotem official stated, "In 2023, we will do our best to faithfully implement concrete plans for carbon neutrality by 2050," adding, "We will become a leading ESG management company fulfilling social responsibility centered on various product groups such as eco-friendly railway vehicles and hydrogen infrastructure."

This content was produced with the assistance of AI translation services.