Hyundai Rotem "Achieving Carbon Neutrality by 2050"

42% Reduction in Carbon Emissions by 2030
"Eco-friendly Railway Vehicles Leading with Hydrogen"

Hyundai Rotem announced on the 15th that it has established an implementation strategy to achieve carbon neutrality by 2050.

The plan is to reduce carbon emissions from its workplaces and supply chain by 42% and 25%, respectively, compared to the end of last year, aiming to achieve full carbon neutrality by 2050.

The strategy was developed by reflecting the greenhouse gas reduction target recommendations presented by the global coalition organization evaluating corporate carbon neutrality goals, the Science Based Targets initiative (SBTi). The recommendations are based on the "Special Report on Global Warming of 1.5°C" officially adopted by the Intergovernmental Panel on Climate Change (IPCC), an intergovernmental body under the United Nations (UN). The report states that to limit the global average temperature rise to within 1.5 degrees Celsius compared to pre-industrial levels, global carbon neutrality must be achieved by 2050.

Hyundai Rotem established five major greenhouse gas reduction strategies based on the English initials of its name, ROTEM. These are Reduction (greenhouse gas reduction), Offset (greenhouse gas offset), Transition (transition to a low-carbon society), Eco-design (low-carbon product lifecycle), and Mobilization (carbon neutrality management).

First, Hyundai Rotem will reduce greenhouse gases within its workplaces. It plans to improve energy efficiency through equipment replacement and actively introduce renewable energy. A solar power self-generation system will be installed using idle land and rooftops within the workplaces. Additional electricity will be procured through Power Purchase Agreements (PPA) to purchase renewable energy from power producers.

To offset greenhouse gases, Hyundai Rotem will develop projects to reduce greenhouse gases in external supply chains linked to its eco-friendly products. To transition to a low-carbon society, it plans to expand its eco-friendly business portfolio, including existing hydrogen-based products, aiming to achieve 100% eco-friendly sales. For low-carbon product lifecycle and carbon neutrality management, it plans to promote low-carbon processes from raw materials to product disposal and strengthen hydrogen-based technologies such as hydrogen electric trams and biogas utilization. It also includes plans to reorganize the carbon neutrality management system to support these initiatives.

Hyundai Rotem has set a goal to introduce 100% renewable energy across all workplaces by 2040, ten years ahead of the global target of 2050. By 2050, it will focus on achieving carbon neutrality throughout its entire supply chain. A Hyundai Rotem official stated, "We will continuously strive to fulfill our corporate social responsibility by expanding our product portfolio that contributes to carbon neutrality, such as eco-friendly railway vehicles and hydrogen infrastructure."

Since 2021, Hyundai Rotem has received an A grade for two consecutive years in the Environmental, Social, and Governance (ESG) evaluation conducted by the Korea Corporate Governance Service (KCGS). In July, it published a sustainability management report containing performance results based on the Task Force on Climate-related Financial Disclosures (TCFD) guidelines.

As of the end of last year, 54% of Hyundai Rotem’s total sales met the Korean Green Taxonomy (K-taxonomy). The K-taxonomy is an economic activity guideline introduced by the Ministry of Environment to activate green finance. According to the K-taxonomy, 95% of Hyundai Rotem Rail Solution’s (railway business division) sales are classified as eco-friendly sales.

Hyundai Rotem’s mid- to long-term carbon neutrality strategy will be available on the company’s website starting from the 1st of next month.

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