Hyundai Rotem Receives 'A Grade' in ESG Comprehensive Evaluation for 3 Consecutive Years

"Focusing Capabilities to Create a Sustainable Industrial Ecosystem"

Hyundai Rotem has achieved an A grade in the ESG (Environment, Social, Governance) comprehensive evaluation for three consecutive years.

Hyundai Rotem announced on the 31st that it received an integrated A (Excellent) grade in the ‘2023 Listed Companies ESG Evaluation and Grade Announcement Results’ published by the Korea Corporate Governance Service (KCGS).

Following 2021 and 2022, Hyundai Rotem was awarded an A+ (Very Excellent) grade in the social sector again this year, and received A (Excellent) grades in both the environmental and governance sectors. This recognition reflects continuous improvement efforts to create a virtuous industrial ecosystem.

In the environmental sector, Hyundai Rotem is expanding its portfolio of eco-friendly products and services such as hydrogen mobility, hydrogen infrastructure, and distributed power high-speed rail vehicles, promoting low carbonization throughout the life cycle of all product groups. In fact, based on consolidated sales last year, 54% of total business sales (48.2% in 2021) and 95% of rail solution sales qualified under the Korean Green Taxonomy (K-Taxonomy), a government guideline for eco-friendly economic activities aimed at carbon neutrality.

In the social sector, Hyundai Rotem was recognized for strengthening co-growth foundations with partner companies and various efforts to comply with human rights management. To build a sustainable industrial ecosystem, Hyundai Rotem has established ESG codes of conduct for all partners and regularly monitors their status. Additionally, it operates technical and educational support programs including joint research and development, testing equipment support, technology protection, demand-tailored vocational training, job creation, and establishment of consultation channels, along with financial support programs such as the Win-Win Fund for partner companies.

Hyundai Rotem is also establishing an advanced governance structure based on checks and balances by operating board committees such as the Audit Committee, Transparent Management Committee, Compensation Committee, and Outside Director Candidate Recommendation Committee to establish a professional and efficient decision-making system. In particular, the Transparent Management Committee, composed entirely of outside directors to maintain independence, reviews the implementation of the Fair Trade Compliance Program and major management issues.

A Hyundai Rotem official stated, “We will continue to make company-wide efforts to contribute to the creation of a sustainable industrial ecosystem and fulfill our corporate social responsibilities.”

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