Hyundai Wia Achieves 'A' Rating in Climate Change Response Evaluation

[Asia Economy Reporter Hyunseok Yoo] Hyundai Wia announced on the 9th that it received the highest grade, 'Leadership A grade,' in the '2022 CDP Climate Change Response Assessment' hosted by the global sustainability assessment organization Carbon Disclosure Project (CDP).

At the same time, Hyundai Wia was selected for the 'Carbon Management Honors Club,' which includes only the top five domestic companies. Hyundai Wia is the only domestic automotive parts company to belong simultaneously to both the Leadership A grade and the Carbon Management Honors Club.

CDP is a project that examines how major companies worldwide respond to climate change issues and publishes a report annually based on this. Used as an investment guideline by financial institutions, CDP is regarded as one of the most trusted global sustainability assessment indicators alongside the Dow Jones Sustainability Index (DJSI) and the Global 100 Most Sustainable Corporations. This CDP climate change response assessment evaluated items related to climate change response, such as greenhouse gas emissions and greenhouse gas reduction targets. The evaluation grades are divided into eight levels, from Leadership A to Leadership A-, Management B, Management B-, and so on.

Hyundai Wia received favorable evaluations for responding to climate change in various areas, such as reducing carbon emissions and expanding the use of renewable energy. First, the final approval for joining RE100, a campaign promoted by The Climate Group and CDP aiming for companies to source 100% of their electricity from renewable energy, was a key factor. Hyundai Wia has set and is pursuing the goal of converting 100% of its electricity usage to renewable energy by 2045.

Hyundai Wia's attempt to shift its business to eco-friendly vehicle parts also contributed to the positive evaluation. In fact, Hyundai Wia is preparing to enter the eco-friendly vehicle thermal management system market by developing the country's first integrated coolant distribution and supply module. Additionally, it obtained green technology certification for its electric supercharger. The company is also developing electrified axles to replace drive axles used in internal combustion engines.

Hyundai Wia is actively implementing activities to reduce greenhouse gas emissions. It is improving inefficient coolant pumps and installing high-efficiency water-saving devices to reduce water usage. It is also reducing electricity costs by improving ventilation in the power plant. Hyundai Wia transparently discloses the environmental impact of its main production product, the constant velocity joint. Accordingly, it received the 'Environmental Product Declaration' certification, a system managed by the Korea Environmental Industry & Technology Institute that quantitatively indicates the environmental impact throughout the entire process from raw material extraction, production, transportation, distribution, use, to disposal. Based on these activities, Hyundai Wia reduced its greenhouse gas emissions by about 20% compared to its allocation in 2021.

Hyundai Wia was also highly evaluated for continuously carrying out social contribution activities that reduce climate change and protect the environment. Since 2019, Hyundai Wia has selected nearby schools as 'Hyundai Wia Green Schools' annually and created school forests. As part of the 'One Company One Stream Campaign,' it has purified the Gaeumjeongcheon Stream in Changwon City, Gyeongsangnam-do, and signed a public-private-academic cooperation agreement with Changwon City for 'Urban Biodiversity Conservation,' conducting activities to preserve the ecosystem.

A Hyundai Wia official said, “We are pleased to have our efforts to protect the environment and respond to climate change recognized,” adding, “We will continue to minimize carbon emissions and actively carry out environmental protection activities to become a company that actively responds to climate change.”

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