HMC 2020 Sustainability Report en v2

Road to
Sustainability
2020 Sustainability Report
Contents This report has been published as an interactive PDF, allowing readers
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1
Introduction
2
Sustainable Performance
3
Sustainability Factbook Sustainability Magazine
CEO Message
003
Sustainability Management Materiality Analysis
015
Global Network
078
Sustainability C.A.S.E
Brand Vision Mid- to Long-term Goals Business Performance 1 . Clean mobility
004 017 079
2. Advanced technology
Future Mobility Vision Facts & Figures
005 081 3. Social values
Our Commitment Our System
Strategic Direction Smart Mobility-based Corporate Stakeholder Engagement 4. Empowered employees
006 Customer Experience Innovation Governance 092
Company Overview 018 072 GRI Index
007 ursuing Eco-friendly Value
P Ethical and Compliance 093
throughout the Entire Value Chain Management Independent Assurance Statement
031 075 098
Special Feature
Creating a Sustainable Risk Management
COVID-19 Solidarity and Support About This Report
Supply Chain 076 104
008
039
Building a Healthy Corporate
Culture
047
Contributing to the Development
of Local Communities
057
1 Introduction 2 Sustainable Performance 3 Sustainability Factbook Sustainability Magazine 003
CEO Message
At the center of Hyundai Motor Company’s management philosophy is “humanity”.
The same principle applies to “Progress for Humanity”, the brand We will overcome the crisis together. To secure a leadership position in the global vehicle electrification
vision we adopted anew in 2019. We have also established “Strategy Hyundai will proactively respond to change by reprioritizing crisis market, we will develop electric vehicle-only platforms and
2025”, an action plan for achieving our vision of the future mobility management with liquidity at the front and minimize losses by further sharpen the competitive edge of our key drivetrain parts.
as a “Smart Mobility Solution Provider”. calibrating production and sales to market situations. Furthermore, In particular, in the business of FCEVs, where we lead the world,
we will remain close to our stakeholders who are experiencing this we will expand the business to fuel cell systems and the relevant
In 2019, upholding our unwavering commitment, disciplined growth difficult time. We will further strengthen the relationship of trust infrastructure, and play a pivotal role in the global transition into a
strategy, and technological prowess, we continued to grow in the with our customers by offering distinctive financing programs hydrogen society. In the mobility service area, we will fully launch
face of challenging market conditions. In particular, we earned and maintaining glitch-free services, and we will bolster ties with the business by region, including Korea, India, and Europe, thus
recognition as the most competitive company in the eco-friendly suppliers and dealers with increased support for supplier liquidity laying the foundation for generating quantifiable outcomes. Taking a
and premium vehicle sectors, to which we have been directing our and dealer sales. In addition, we will support policy measures that step further, Hyundai will evolve into a company that offers mobility
commitment to excellence. We demonstrated this by recording are implemented to fight the COVID-19 pandemic throughout the solutions in a wide range of areas, such as Urban Air Mobility (UAM),
our No. 1 position in global FCEV sales and maintaining the leading world, and conduct CSV activities addressing the needs of local robots, and smart cities – all soon to become a reality.
position of the Genesis that was named as the top premium brand communities that are doing their best to overcome the crisis.
in the US Initial Quality Study (IQS) for three years in a row. No one can predict what the post-COVID-19 era will be like. Even
We will become stronger. the amidst of an unprecedented pandemic, Hyundai’s goals remain
In addition to economic value creation, one of our fundamental Hyundai will implement bold and innovative measures that will clear. As the corporate environment becomes increasingly complex,
roles as a company, Hyundai focused our capabilities and passions change the fundamentals of our cost structure in order to be strong Hyundai’s innovation points to one direction. We will continue our
on generating social values crucial to the betterment of society. We enough to withstand a crisis of any magnitude. We will rationalize “Progress for Humanity” with the goal of providing freedom of
widened the scope of our CSV activities so that our stakeholders can the inefficient powertrain and other low-performing lines, reduce movement to everyone, connecting people with quality time, and
spend quality time with Hyundai and expedited the development of production costs through design innovation and manufacturing improving the daily lives of all humanity. We will take untrodden
eco-friendly technology so that we can usher in a hydrogen society standardization, and facilitate profit-centric decision-making by paths that are far from easy but worth the effort, and strike out
powered by unlimited clean energy. As a result of these efforts to improving the flexibility of global production systems. We will also in new directions. I look forward to your continued interest and
run our business in an economically, socially, and environmentally increase our operational efficiency and execution abilities through support as we journey towards a sustainable future.
responsible way, Hyundai made the coveted Dow Jones Sustainability process innovation. Customers are the driving force as well as
Index (DJSI) Korea list in 2019. the goal of our innovation. Once the crisis is overcome, we will be Thank you.
transformed into a thoroughly customer-centric institution, and by
In 2020, we are facing unprecedented crisis and challenges. The turning this obstacle into opportunity, we will discover a path to new
global spread of the COVID-19 pandemic is threatening the stability growth.
of the world economy and the cohesion of the global community.
Responding to the threat as a mature global player, Hyundai will We will prepare for a new future. President & CEO, Hyundai Motor Company
lead global efforts of progress towards a better future by faithfully Hyundai will develop new growth in the future mobility market Won Hee Lee
executing the following tasks. based on our mid- to long-term innovation plan, Strategy 2025.
Brand Vision
Progress for
Humanity
In the Fourth Industrial Revolution era, industry boundaries are disintegrating
amid a rise of convergence and change. Mindful of such global megatrends,
Hyundai is accelerating its innovation drive powered by an advanced technical
prowess.
Ever present in Hyundai’s 50-year journey has been the notion of the human race.
Without aspirations for humankind, our technological innovations would have been
impossible. As an extension of our ever-hopeful journey, in 2019 we adopted
a new brand vision “Progress for Humanity” as a way to confirm our determination
to create more valuable time for all humanity.
Hyundai is now going beyond being an automobile manufacturer to become a mobility

solution provider that allows people to easily move and connect with one another,
spaces and places, and thus enabling them to make their time more valuable. We will
provide mobility services that make every moment of life more valuable than before
by more thoroughly understanding people’s daily lives, in our journey toward progress
for humanity.
Hyundai’s Brand Vision

Future Mobility Vision
Smart Mobility
1
Solution Provider
The essence of future mobility lies in the ability to connect people safely and quickly.
In particular, mobility freedom is a crucial issue for future cities, as their population
will soon make up for more than half the world population. We believe that this is
because the easier people make use of their time and space the more meaningful tasks
they can challenge themselves to.
At the Consumer Electronics Show (CES) 2020, Hyundai unveiled its future mobility
vision, presenting a blueprint for the vision of helping vitalize human-centered
future cities. The smart mobility solutions we envision break down urban boundaries
2
and create new communities by radically reducing travel time. We will provide
seamless mobility solutions comprising Urban Air Mobility (UAM), Purpose Built
3
Vehicle (PBV), and Hub – a place for mobility transfer and community activities
– all in a bid to contribute to the vitality of dynamic human-centered future cities
and as part of our pursuit of “progress for humanity”.
1 2 3
Urban Air Mobility (UAM) Purpose Built Vehicle (PBV) Hub
• A mobility solution that combines Personal Air Vehicles (PAV) and • An eco-friendly urban vehicle that offers customized • A new mobility space connecting an air-based
UAM services to make airspace available for urban transportation services in transit, such as a coffee shop and medical clinic UAM and ground-based PBV
• The use of electric vertical takeoff and landing (VTOL) vehicles allows • Connects to the Hub via docking station, located on • Creates new communities by combining
runway-free urban air travel the ground floor of the Hub multiple PBVs
• Connects to the Hub via skyport, located on top of the Hub
Smart Mobility Solution Provider for Human-centered Cities
Strategic Direction
Future Mobility
Vision
Smart Mobility Solution Provider
Smart Mobility Device +
Smart Mobility Service
2 Business
Structures Smart Mobility Device Synergy Smart Mobility Service Companies with a creative DNA, advanced in technology and passionate about
innovation, prepare for a new future even in the face of uncertainties gripping the
global economy and unprecedented challenges shaking the global community.
This is why Hyundai has established “Strategy 2025”, a mid- to long-term innovation
plan for achieving the goals defined in our brand vision as well as future mobility vision.
3 Strategic
Directions
Based on Strategy 2025, we have divided our business structure into two – smart
mobility device and smart mobility service – and are pursuing three strategic directions
– enhancing the profitability of internal combustion engine vehicles (ICEVs), securing
top-tier leadership in electric vehicles (EVs), and laying a strong foundation for the
platform business. These will enable us to enhance competitiveness in manufacturing
as a global automaker and to foster a new platform-based service and content business.
Highly profitable ICEV Top-tier leadership in EV Strong foundation for the Crucial to these methods are thinking from the customer perspective and providing
platform business products and services that customers most desire.
4 Business As a smart mobility solution provider, we will respond nimbly to changes and thoroughly
Balanced & steady growth Vehicle + service package
Strategies prepare for the future in line with our innovation plans, and thus present new standards
for values of future mobility and achieve sustainable growth.
Enhanced value for customers +
Integrated mobility platform
Cost innovation
Smart Mobility Service and Technology

Company Overview
Since its establishment in 1967, Hyundai has been making continuous efforts to provide customers with the best products and services possible. In 2019, we exceeded KRW 100 trillion in sales, our highest ever sales figure, and the continuation of a long history of solid
performance. We also achieved outstanding results in evaluations of our sustainability as a company. Based on our Strategy 2025 sustainable management, we will fully establish Hyundai as a “smart mobility solution provider”.
Corporate Information Global Production and Sales in 2019 (Unit: Vehicle) Sustainability Management Performance in 2019
Total Assets Sales Revenue Production Sales Performance Institution
Dow Jones Sustainability Indices

KRW 194,512.2 billion KRW 105,746.4 billion Korea 1,783,617 741,842
(DJSI)
Included in DJSI Korea, a testimony to Hyundai as an outstanding company, pursuing sustainable
management, in Korea
Credit Ratings Joined the Honors Club for the best response to climate change, and Carbon Management Sector
Overseas 2,701,188 3,734,309 Carbon Disclosure Project (CDP)
Honors (discretionary consumer goods) for the second consecutive year
Moody’s S&P NICE Investors Service
Chinese Academy of Social Sciences’ Ranked No. 1 in the automotive company category for the fourth consecutive year and No. 4 in the
Baa1 BBB+ AA+ Total 4,484,805 4,476,151
CSR Assessment (CASS-CSR) overall company ranking in China’s Corporate Social Responsibility Development Index Evaluation
* As of the end of 2019; Based on K-IFRS consolidated financial statements
2019 Best-selling Models

(Unit: Vehicle sold globally)
Elantra (Avante) Tucson Accent Sonata Santa Fe
458,881 492,165 304,748 256,433 211,902

* As of the end of 2019
Special Feature
COVID-19 Solidarity and Support
We are in this,
together.
We can overcome any crisis or fear if we stand together.
Even when physically apart, we can stay connected
through our hearts. In times of crisis as well as stability,
Hyundai moves with you.
The COVID-19 pandemic is threatening the economic and

social well-being of humankind. Though the whole world is
immobilized in pain and agony, we believe that the solidarity
of hope continues because we remain connected.
Hyundai is helping the world overcome the crisis by conducting

various activities in support of customers, employees, suppliers
and local communities, and other stakeholders. Changing fear
into hope and replacing despair with love, we are in this together.
Amid the unprecedented challenges of COVID-19 pandemic, Hyundai is

realizing the value of “togetherness” as a responsible community member
whose sense of responsibility extends beyond Korea to local communities
around the world. From mobility services leveraging our expertise as a
global auto company to the provision of funds, medical supplies, and
relief food, we will fulfill our social responsibilities as a mobility brand that
is loved and trusted by people across the globe.
Caring for #Humanity

Korea Asia
Hyundai is putting resources into nationwide efforts at overcoming challenges and crises, brought Near the end of January, when COVID-19 began to rage
onto our society by COVID-19, using diverse methods available at the Group level. We have donated through the city of Wuhan, China, Hyundai announced its
KRW 5 billion to the Hope Bridge Korea Disaster Relief Association. Further, we have offered the humanitarian support plan and delivered funds and medical
Hyundai HRD Center and the Global Win-Win Cooperation Center in Kyeongju for use as community supplies amounting to KRW 2.5 billion. We also donated 30
treatment centers as well as the Paju Campus of HRD Center as a temporary treatment center for commute vehicles to Wuhan for medical staff and workers,
people coming from overseas, in order to help treat mild cases in the Daegu and Kyeongbuk regions soon following up with additional monetary donations and
that are struggling with a soaring number of confirmed cases. We also are servicing vehicles that are vehicles. The prompt and cross-border acts of empathy
used for transporting children and used by paramedics working at the forefront of the fight against touched the hearts of many Chinese and drew a keen media
COVID-19. For a month ending mid-May, 5,500 vehicles being used by childcare centers and attention highlighting Hyundai being the first among Korean
kindergartens were disinfected and inspected for safety, and some 500 ambulances of the National corporations operating in China to respond to a neighboring
Fire Agency were given a maintenance service free of charge. country under attack by an unknown epidemic. In particular,
Chinese media and local sustainability management experts
Also provided are snacks for medical staff fighting COVID-19 or caring for patients; free inspection spoke highly of the sincerity of Hyundai’s support, praising it
services for ambulances; medical site-tailored supports such as blood donations; masks for as an exemplary case of turning a crisis into an opportunity.
the underprivileged of local communities; and food packages for children of needy families. A
thoughtful campaign was also carried out at our Jeonju Plant where employees bought flowers from Hyundai Motor India (HMI) has donated medical supplies
nearby flower farms as a way to revitalize the local economy amid the prolongation of COVID-19. and relief packages worth KRW 4.9 billion to each of the
central government of India and the state government of
Tamil Nadu. The relief supplies included globally-recognized
Korean COVID-19 diagnosis kits, masks, detergents, other
medical items, and hospital waste incinerators. In addition,
we plan to produce 1,000 respirators in collaboration with a
local medical device company for the government of Tamil
Nadu, where HMI is located. In Indonesia, we are in our early
market entry phase. Nevertheless, we are exploring better
ways to provide support, such as building drive-through
test sites, ready to take a step closer to local communities in
need, as a true, if unfamiliar, friend indeed.
Major activities supporting global efforts to

• Donating vehicles for transporting medical staff and • Providing Korean COVID-19 diagnosis kits and
overcome the COVID-19 crisis by region
Americas the underprivileged, and emergency daily goods
- 18 units of SOLARIS donated
supporting virus testing efforts
- 10 thousand diagnosis kits
- 100 taxis donated for medical staff transport - 20 drive-through test facilities
Hyundai is supporting the operation of drive- - Uzbekistan, Kazakhstan, Belarus: Medical supplies
through sites designed to test people for COVID-19
by donating USD 200 thousand to 11 children’s
hospitals each through Hyundai Hope On Wheels,
a non-profit organization that helps children
fighting cancer. In response to a request from the
city of Montgomery, we provided Korean diagnosis
kits that were enough for 10 thousand people. We • Donating vehicles for transporting medical staff
donated masks, protective goggles, hairbands, and medical supplies
and medical gloves for 150 medical staff in Brazil, - Vehicle support: Spain (58 units), Italy (25 units),
Poland (10 units)
which has been struggling with a rapid spread of - The Czech Republic, France, Turkey: Funds and
• Donating medical supplies, such as medical gloves,
COVID-19. We also have launched the “Transporte medical supplies gowns, and hats, as well as funds
Solidário Hyundai” program to help with the Europe - Relief supplies worth RMB 5 million (KRW 840 million)
Russia
treatment and mobility of people fighting the - Funds totaling RMB 10 million (KRW 1,690 million)
virus, and provided convenient mobility services to North America
China
medical staff and seniors aged 60 and older.
Africa and the Middle East
Europe India
Asia Pacific
In the Czech Republic, where Hyundai Motor
• Supporting the production of ambulances and
Manufacturing Czech (HMMC) is located, we Latin America
donating funds
donated KRW 500 million, relief supplies worth
- Morocco: 25 specially-equipped ambulances
KRW 160 million, and 20 thousand masks in March - Republic of South Africa, UAE, Saudi Arabia, Iran:
2020. In addition, through the Korean immigrant Medical supplies and funds
association, HMMC donated 1,500 masks to local
Koreans, as mask-wearing was being enforced
outside homes. In a time of acute shortage, when
even medical institutions are short of masks and • Donating vehicles for transporting
other key supplies, donating essentials has been medical staff and medical supplies
acknowledged by many as an exemplary case - Brazil: Medical staff protection equipment,
of corporations in community service. In Turkey, • Donating medical supplies and supporting virus testing efforts eight vehicles, etc.
Hyundai Assan Otomotiv Sanayi (HAOS) donated to - Indonesia: 50 thousand protective clothing sets, 20 respirators, one drive-through facility
the government around KRW 400 million and medical
equipment and supplies for 80 thousand people. In
particular, we charted a passenger flight not only to
transport over half the donation items from Korea,
• Providing Korean COVID-19 diagnosis kits and
but also to bring 147 Koreans back home. Regardless donating medical supplies and funds
of the circumstances, Hyundai will never forget our - 25 thousand diagnosis kits
corporate citizenship, our pride as a representative of - Medical supplies, such as respirators and medical staff
the Korean industry, and our relationship of trust with protection equipment - Philippines, Thailand, Nepal, Myanmar: 2,000 protective suits sets each
local communities across the globe. - Singapore: 10 thousand diagnosis kits
Caring for #Humanity #online

As social distancing continues with an increasing number of people subject to self-quarantine, many are
suffering from the fatigue and frustration. For such individuals and other emotional victims of the pandemic,
Hyundai is creating entertaining yet meaningful content that can be enjoyed indoors. In particular, “#Thisisus”,
a video made to cheer people to overcome the fears of COVID-19, exceeded 3 million views in a mere five
days of posting. Also, the Hyundai logo of washing and shaking hands while practicing social distancing puts
a small-yet-lasting smile on people’s faces.
Caring for
#Suppliers & Dealers
Modern history shows each global crisis has brought about changes in the industrial
ecosystem of the times. The COVID-19 pandemic in particular has illuminated the
importance of a stable supply chain in terms of parts supply and overseas sales.
Hyundai recognizes that partners, the basis of its of vehicle purchase funds are given 60 days to pay
global production and sales, are crucial to achieving for the new vehicles they receive; while a special
sustainable growth in a post-COVID-19 era, and three-year loan is given to dealers who have been
thus provides its suppliers with management, using Hyundai Capital products and are short of
technological, and other support. Cash-strapped operating funds.
small- and medium-sized parts suppliers are
provided with emergency funds totaling KRW 1 In May 2020, to prevent the spread of COVID-19
trillion. Further, the monthly franchise fee is waived and to look for better ways to grow together with
for Bluehands, the auto repair and service franchise, our suppliers, Hyundai applied a non-face-to-
in North Gyeongsang Province, which has been face approach to developing software and other IT
hit hard by COVID-19, and halved for other regions. programs. This change enables supplier employees
Franchise fees that had been waived or cut amounted to carry out IT development from the comforts
to around KRW 1,410 million, from March to May. of their home or other places of their choice. By
building a contactless IT development platform
Dealers are another focus of our support. Hyundai that increases development efficiencies and even
#Thisisus. Humanity prevails.
Motors America (HMA) is providing various types of improves job satisfaction among suppliers, Hyundai
financial support to its US dealers, hit by the impact is expediting its shift to being a smart mobility
Click images to see the of COVID-19, through its subsidiary, Hyundai solution provider and preparing win-win measures
respective online posts Capital America. Accordingly, dealers who are short in the post-COVID-19 era.
Hyundai employees are not immune to the mental and physical hardships related to
COVID-19. Which is why Hyundai is making various efforts to protect its employees.
First of all, we are creating an environment where offices to boost employee morale and to support By Employees
employees can work with their minds at ease. With the local economy where the Yangjae Flower
There is an unmanned donation terminal set up on the lobby of the Yangjae-dong
telecommuting adopted and the work hours adjusted, Market is located. New contactless services have headquarters building and the Korea Business Division in Korea. Unmanned but full
the work conditions at Hyundai have become more also been introduced, including a mobile pickup of the warm-heartedness of people, the terminal is the realization of one of the ideas
flexible. By preventing face-to-face meetings and zone that enables employees to pick up breakfast that employees posted on an online employee community. In support of a growing
minimizing activities requiring physical contact, through an app, and an “untact” robot that serves consensus among employees, Hyundai built an unmanned donation system that enables
we are striving to block the spread of the infectious the joy of having a cup of coffee or tea in leisure. its employees to make donations in genuine sincerity by simply holding their employee
disease. Mask-wearing has become mandatory ID cards to the sensor on the terminal or by making donations through the NAVER
for all employees as well as visitors entering our In addition, we have put a crisis response system Happybean, an online donation platform. In the three-week operation of the terminal
business sites, while all non-business personnel in place. Accordingly, in the event of a virus from mid-March, 3,439 employees donated over KRW 250 million, and the company
have been restricted from entering the company’s infection at any of our business sites, all buildings or added a matching fund to raise a total of KRW 515.8 million, which will be used to
business. Moreover, employees are checked for high worksites exposed to the patient are immediately help the underprivileged affected by COVID-19. Hyundai was also on the forefront of
temperatures whenever they enter a business site. All closed down and completely disinfected. Anyone nationwide blood drives in support of medical sites struggling with patients in need of
elevator buttons and escalator handrails in business who may have come in contact with the patient blood transfusions. The original eight-day blood donation campaign was extended to
sites are regularly sanitized, and commute buses get is identified and instructed to self-isolate at home a 10-day campaign due to the growing number of participants. Over 1,000 employees
disinfected prior to operation. and to get tested for the virus, and the information took part in the campaign, spreading the spirit of “Team Hyundai” far and wide.
Caring for Partitions were set up in the company cafeterias

to minimize employee-to-employee contact,
and results of all relevant measures taken are
provided to the Korea Centers for Disease Control
& Prevention. This system serves as the framework
#Employees and special meals were provided to strengthen

employee immunity. Fresh flowers were put in the
that goes beyond safeguarding our employees and
supports the stability of our society.
Participants1)
3,400 persons +
Donations2)
500 KRW million +
1)
Including Hyundai headquarters,
worksite employees, and the labor union
2)
Sum of employee donations and funds
matched by the company
A pandemic, brought on by COVID-19, is sweeping through the entire world, leaving

trails of fear and chaos. Fears of contracting, suffering from, and dying of the virus,
compounded by the psychological effects of a long forced self-isolation, are morphing
into types of social anxiety modern society has never experienced. In addition, as
shutdowns continue across the many industrial sectors, both the global and household
economies are in a dire situation.
Shop, Sign, Buy, All
from home
Caring for #Customers

To dissipate such emotional pain and economic Further, our customers across the globe will have
hardships, Hyundai is fully engaged in forming their coverage extended up to three months. This
the powers of solidarity. First of all, we are sparing program extends the warranty period of 1.21 million
neither resources nor efforts in caring for customers vehicles with the warranty ending between March
whose well-being is the basis and goal of our and May 2020. We are looking into expanding the
“Click to Buy” digital platform being. The digital sales platform “Click to Buy” is period and target vehicles as the COVID-19 crisis
an example of our efforts to create a safe customer is expected to last longer than first projected. Our
contact point and to prevent the spread of the fight against COVID-19 also takes the form of a
infectious disease. As of April 2020, customers in special customer care service centering on vehicle
India, the U.S., the UK, and Australia can purchase interior disinfection and the replacement of air-
Hyundai vehicles online, and the one-stop purchase conditioner filters to kill bacteria and prevent mold.
program will be extended to Italy and Indonesia. This service is available for some 170,000 Hyundai
Hyundai Motor India (HMI), a first to adopt the Click vehicles in 27 countries as of June 2020.
to Buy service in January, is also conducting the
“We are safe” campaign that emphasizes keeping As a friend in need is a friend indeed, we will be a
employees and vehicles sanitized at sales and partner that our customers can always rely on by
service points and highlighting the benefits of online keeping in mind the support and trust which they
purchases as part of our pledge to safe transactions. have given us.
“We are safe” campaign

2 Sustainable Performance
In 2019, Hyundai sought to improve the conditions of life for all humankind, in the areas of
establishing a smart mobility ecosystem, pursuing eco-friendly value throughout the entire value chain,
creating a sustainable supply chain, building a healthy corporate culture, and contributing to the development
of local communities. In addition, based on our unique strategy for creating shared value (CSV),
we generated distinctive values and continued our innovation drive toward a sustainable future.
015
1 Introduction
Sustainability Management Materiality Analysis
Materiality Analysis Process

Sustainability Management In 2019, Hyundai conducted a 5-step sustainability management materiality analysis to identify potentially material issues, to examine the content of each issue, and to reflect them in the list of materiality goals. Next, we formed and prioritized
Materiality Analysis a pool of material topics. The resulting report contained issues that were identified as potentially material and addressed in connection with the company’s mid- to long-term goals.
Mid- to Long-term Goals
Our Commitment Step 01. Step 02. Step 03. Step 04.
Our System Forming a pool of topics Analyzing issues Stakeholder survey Selecting material issues
We analyzed sustainability management trends by We analyzed documented materials and quantified Priority level of each issue was determined by business Priority level of each issue was determined by business
analyzing global economic, social, and environmental the results of analysis for each category, in order relevance (financial, strategic, operational impacts) relevance (financial, strategic, operational impacts)
3 Sustainability Factbook issues as well as international standards, and to determine the priority of the issues in the major and social impacts (reputational impact). and social impacts (reputational impacts).
benchmarked sustainability reports in the same industry. sustainability management issue pool.
We also carried out media research and internal status
Sustainability Magazine reviews to form a pool of 32 material sustainability topics Analysis of business relevance Overview of stakeholder survey
that influence our stakeholders. • Internal status analysis
Analyze publicly disclosed materials, including the CSV strategy, Period Feb. 10, 2020 – Feb. 21, 2020
newsletters, and the Corporate Governance & Communication Financial impacts Strategic impacts
Committee Method Online survey
• Benchmarking of other companies in the same industry

Analyze material issues of recent sustainability reports published Hyundai employees, sustainability experts
Target
by competitors from outside the company Materiality
Analysis
• Analysis of reports by external experts
Analyze securities firms’ analyst reports and columns published • Select material topics related to
by experts Hyundai’s sustainability management
Details
• Determine the priority of the Reputational impacts Operational impacts
material topics
Analysis of social impacts
• Analysis of international standards
Analyze major sustainability initiatives in Korea and overseas,
including GRI, DJSI, SASB, and UN SDGs, as well as ESG evaluations
• Media research
Analyze 33,231 articles from major media outlets in Korea that
were published in 2019
• Past reports
Analyze reported issues and the content of reports that were
published in the last five years
Step 05.
Materiality analysis results

In relation to the topics that were identified through the materiality analysis, major activities and outcomes are reported in detail throughout this report. For the three issues that were chosen as material issues, we have provided in-
depth information, including the direction of issue management, key outcome and goals, thereby disclosing our efforts and activities in sustainability management.
016
1 Introduction
Materiality Analysis Results
● Material: More than 7 points Grouping by Issues of Sustainability Management
Material Issues 5 Areas of Sustainability Management
2 Sustainable Performance ● Relevant: 5–7 points Material Issues Others
● Emerging: Less than 5 points
2. Technological innovation 18. Brand reputation
Developing eco-friendly vehicles 20. Entering the global market
3. Customer and product safety 19. Financial performance 1 Smart Mobility-based Customer
Sustainability Management Customer communication 21. Production quality management
4. Customer communication Experience Innovation
Materiality Analysis 28. Risk management
Mid- to Long-term Goals 8. Reducing air pollution 27. Hazardous substances

Employee diversity and human rights
11. Reducing wastewater and in products
Our Commitment waste 29. Raw and subsidiary materials
Social impacts (1–5 points)

Customer and product safety
1. Developing eco-friendly 13. Improving fuel efficiency management 2 Pursuing Eco-friendly Value
Value chain Technological vehicles 14. Reducing greenhouse gas 30. Water resources management throughout the Entire Value Chain
Our System sustainability innovation
31. Protecting biodiversity
16. Health and safety in the
workplace 32. Hazardous substances in the
17. Energy management workplace
3 Sustainability Factbook
6. Value chain sustainability 12. Win-win growth 32. Hazardous substances in the
workplace (value chain) 3 Creating a Sustainable Supply Chain
16. Health and safety in the
workplace (value chain)
Sustainability Magazine
7. Anti-corruption and 23. Corporate governance
Relevant Issues ethical management 24. Job creation and retention
5. Employee diversity and 10. Labor-management relations 25. Employee compensation 4 Building a Healthy Corporate Culture
human rights 15. Developing human resources 26. Flexible corporate organization
16. Health and safety in the 32. Hazardous substances in the
workplace workplace
Emerging Issues
5 Contributing to the Development of
9. Social contributions 22. Building infrastructure
Local Communities
Business relevance (1–5 points)
Material Issue Management

Material Issues Direction for Issue Management 2019 Outcome Mid- to Long-term Plan
• Reduce GHG emissions at the user stage through the development of • Kona EV won 2019 North American Utility Vehicle of the Year, and included in the WardsAuto • Operate over 26 eco-friendly vehicle models (by 2025)
eco-friendly vehicles 10 Best Engine List for 2019 • Sell over 1.03 million units of eco-friendly vehicles (by 2025)
Developing
• Embrace global environmental regulations regarding the automotive industry • Launched new models: 3 HEVs and 1 EV (including Kona HEV, compact SUV, and Porter EV, • Produce 500,000 units of FCEVs per year (by 2030)
eco-friendly
and meet consumer needs Hyundai’s 1st compact commercial model) • Develop and apply a new architecture for EVs (by 2024)
vehicles
• Monitor vehicle electrification strategy trends within the industry and • Sales of eco-friendly vehicles in 2019: 183,000 vehicles
preoccupy the global EV market • Sales of FCEVs in 2019: 5,000 vehicles (4,194 in Korea, 711 overseas, based on shipment)
• Expand smart mobility devices and services through Strategy 2025 • Applied the Highway Driving Assist II (HDA II) system to the new Genesis SUV (GV80) • Mass-produce Level 3 autonomous vehicles capable for highway driving (by 2021)
• Spread human-centered values by commercializing autonomous driving • Established smart mobility solution companies • Mass-produce Level 4 autonomous vehicles capable of urban driving for
Technological
vehicles and expanding the mobility business (Mocean in Korea, Moceanlab in the U.S.) fleet operations (pilot robo-taxi service) (by 2023)
innovation
• Enhance social values, such as customers’ freedom in mobility and solving • Developed the AI-based SCC-ML1) technology for the first time in the world • Fully commercialize Level 4 autonomous vehicles
urban traffic issues (commercialization of a robo-taxi service) (by 2030)
• Identify and respond to new risk factors associated with technology changes, • Completed the development of the 3rd generation platform, and applied it to the • Win IIHS awards (2020), and receive the high rating at the Euro NCAP
aging population, etc. 8th generation Sonata (Every year)
Customer and • Increase safety by applying 3rd generation platform and advanced driver • Applied state-of-the-art infotainment system, equipped with augmented reality (AR) • Increase the number of models to which the 3rd generation platform and
product safety assistance system (ADAS) navigation and ADAS sensors, to Genesis ADAS are applied
• Obtain outstanding performance results in automobile collision safety • Tied for the most IIHS2) awards
evaluations and raise public awareness
1)
Machine learning-based smart cruise control
2)
Insurance Institute for Highway Safety
017
1 Introduction
Mid- to Long-Term Goals
Hyundai has set five areas of sustainability management, based on the materiality analysis, and developed five commitments accordingly, in order to achieve sustainable growth. In addition, we have defined our strategic goal as “smart
mobility-based customer experience innovation” based on our new “Strategy 2025”. We have also set a number of additional goals for environmental and social change across the entire value chain, including business sites and suppliers.
Sustainability Management Hyundai will therefore focus on “pursuing eco-friendly value throughout the entire value chain”, “creating a sustainable supply chain”, and “building a healthy corporate culture”. In addition, by “contributing to the development of local
Materiality Analysis
communities”, we will generate social value for more people across the community and continue to expand our social contributions as a global automaker.
5 Areas of Sustainability Management 5 Commitments UN SDGs Main Achievements in 2019
Our Commitment
Smart mobility service
• Build a base for the mobility business
Our System
• Formed an autonomous driving joint venture in
Smart Mobility-based Customer Improve user convenience and accessibility through
1 Smart mobility technology collaboration with APTIV
Experience Innovation car-to-life technologies
• Established a brand vision for sustainability
3 Sustainability Factbook • Launched an open customer communication platform
Customer experience innovation
Eco-friendly vehicles • Develop eco-friendly vehicles
• Produce FCEVs
Become a leader in creating environmental value by
Pursuing Eco-friendly Value • Facilitate greenhouse gas reductions at business sites
2 developing eco-friendly vehicles and reducing the level of
throughout the Entire Value Chain • Enhance the capabilities of the resource circulation
greenhouse gases in production processes
network
Eco-friendly business site • Establish a photovoltaic power generation complex
Supporting win-win growth

•Help suppliers recruit talents
Creating a Sustainable Establish a sustainable business ecosystem by managing • Help suppliers build smart plants
3
Supply Chain ESG risks throughout the supply chain • Support suppliers’ export marketing
• Manage supply chain ESG risks
Supply chain risk management
Building a flexible workforce • Improve recruitment and HR systems

• Build an infrastructure and develop drivers for constant
Create a work environment which strikes the right balance
Building a Healthy Corporate learning
4 between work and personal lives at all business sites, and Attracting and nurturing talents
Culture • Ensure that leaders lead by example, and clearly
manage related ESG risks
communicate about change
Protecting employee rights • Form a consensus through on-site communications
CSV strategy
• Build the IONIQ Forest

5
Contributing to the Development of Fulfill social responsibilities as a mobility solution provider
CSV activities by area • Traffic Safety Campaign with Robocar Poli
Local Communities by actively contributing to local communities
• Preserve the Petra World Heritage Site
Global CSV activities

Our Commitment 01
Smart Mobility-based Hyundai is building a society in which everyone can enjoy the true freedom
of smart mobility. With autonomous vehicle-based transportation services
Customer Experience Innovation playing an important role in the development of people-centered cities,
we will use big data and AI technologies to create new and innovative
customer experiences.
019
1 Introduction
Smart Mobility Service
Sustainability Management
Last Mile Mobility Solutions Autonomous Driving Verification and Pilot Service
Pilot service for Shucle, a community-type mobility service BotRide, an autonomous ride sharing service
Mid- to Long-term Goals 1)
Hyundai, in partnership with KST Mobility, launched “Shucle”, Korea’s first on-demand A trial run of “BotRide”, a ride sharing service that uses Hyundai’s autonomous driving A service that transports
ride-pooling service1) equipped with Hyundai’s AI platform. When a user calls a vehicle vehicle, was recently conducted in Irvine, California. Using the BotRide app, riders can hail passengers with similar routes/
Our Commitment destinations together
from anywhere within a service area with a radius of around 2 km, a large van (modified an autonomous vehicle directly from their smartphone, and the app directs passengers
2.1 Smart Mobility-based 11-passenger H350 SOLATI) drives along an optimal route generated in real time in order to to nearby stops for pick up and drop off in order to share a ride. With this pilot run, we will
Customer Experience Innovation pick up and drop off passengers at their desired locations. When a new call is generated, a secure data on user experiences in preparation for a future without drivers, in addition to
car sharing algorithm is used for real-time route re-calculation and vehicle allocation, so that autonomous driving technologies, thereby upgrading autonomous driving services.
- Smart Mobility Service passengers with similar routes and destinations can share a ride. Once the Shucle service is
- Smart Mobility Technology facilitated, residents in the region will enjoy greater mobility convenience, while unnecessary
short-distance driving will be reduced and local communities will be revitalized. We also Development of downtown autonomous driving technologies
- Customer Experience
anticipate that the service will contribute to addressing parking shortages in the future. with the Seoul Metropolitan Government
Innovation
In November 2019, Hyundai and the Seoul Metropolitan Government signed a memorandum
2.2 Pursuing Eco-friendly Value of understanding (MOU) to develop the world’s best autonomous driving mobility platform
throughout the Entire Value Chain I-MOD, an on-demand bus service city. Based on this MOU, Hyundai will demonstrate autonomous driving in the Gangnam
Pilot services for “I-MOD” were successfully completed in January 2020, followed by its final area of Seoul, beginning with six autonomous driving fuel cell electric vehicles (FCEVs) and
2.3 Creating a Sustainable selection for the “Main Project for Smart City Challenge”. Leveraging this as an opportunity, then increasing to as many as 15 vehicles by January 2021. This partnership with the Seoul
Supply Chain Hyundai will launch multi-mobility services that enable the convenient use of various means Metropolitan Government is significant in that an ecosystem for public-private collaboration
of transportation using a single application and will push on with its transformation into a is being created for the future of the automobile industry.
2.4 Building a Healthy Corporate
“smart mobility solution provider”.
Culture
2.5 Contributing to the Development

of Local Communities ZET, an open type last mile mobility platform
Hyundai has developed “ZET” and launched last mile mobility sharing services together with
small- to medium-sized enterprises (SMEs) specializing in sharing services. Beginning with
Our System
Jeju Island, we are expanding the scope of services by using electric scooters and electric
bicycles. We will focus on active cooperation so that a greater number of SMEs can provide
last mile sharing services through ZET by operating the open service in which Hyundai
3 Sustainability Factbook Motor Group builds a service platform, while multiple service-operating companies use it to
offer services to customers.
1 Pilot service for Shucle,

a community-type mobility service
2 ZET, an open type last mile mobility
호출 탑승 이동 하차
platform
3 BotRide, an autonomous ride sharing
1 2 3
service
020
1 Introduction
Collaboration Ecosystem and Strategic Investments
2 Sustainable Performance Establishing Mocean, a smart mobility solution company in Korea Establishing Moceanlab,
Mocean, the new subsidiary of Hyundai Motor Group, is supplying “Mocean Smart Solution”, a subsidiary in charge of mobility demonstrations in the U.S.
an in-house developed integrated fleet management system. The new solution is an Hyundai established Moceanlab, a subsidiary specializing in mobility that offers car sharing
Sustainability Management integrated solution designed to enhance the operational efficiency of rental car companies services in LA. Beginning with car sharing services, we will move forward with cutting-
Materiality Analysis based on terminals and management systems for vehicle control. By establishing a new edge mobility service demonstration projects, including robo-taxis and Urban Air Mobility
cooperative model with rental car businesses, major mobility business entities, we aim to (UAM). In November 2019, Moceanlab launched subway station-based car sharing services,
facilitate the mobility industry in Korea. using as its base four transfer parking lots near major subway stations in downtown LA.
Moceanlab plans to expand this into a free-floating car sharing service without limitations
Our Commitment
on parking location, in downtown LA, Koreatown, and Hollywood. It will continue to provide
MOU on the future mobility business (Dec. 2019)
2.1 Smart Mobility-based various next-generation mobility services as a global test base that will take the lead in
Customer Experience Innovation • Signed an MOU with the Korea Rent-A-Car Association for future mobility future mobility innovation.
business cooperation
- Smart Mobility Service
‒ Provide Hyundai Motor Group’s integrated rental car management system, Launching of the mobility business in the U.S. (Nov. 2019)
- Smart Mobility Technology
the Mocean Smart Solution, and alliance services; and build a mobility
- Customer Experience collaboration system • Unveiled, for the first time, Hyundai Motor Group’s US mobility business through
Innovation CoMotion LA, a mobility event held in LA
• Signed an MOU with the city of LA for comprehensive mobility business cooperation
2.2 Pursuing Eco-friendly Value ‒ Participated in car sharing organized by the city of LA and explored mobility cooperation
throughout the Entire Value Chain Strategic investment in and collaboration with KST Mobility,
a taxi platform company in Korea
2.3 Creating a Sustainable Hyundai invested in KST Mobility, a member of the taxi transportation association
Supply Chain Investment in and collaboration with Ola, a car hailing company in India
established in 2018, thereby laying the foundations for a system that will support diverse
2.4 Building a Healthy Corporate mobility service innovation within the taxi system. We plan to upgrade taxi mobility services Hyundai made a strategic investment in Ola, the largest car hailing company in India.
Culture through cooperation on R&D in such areas as mobility, and mutual cooperation on mobility Accordingly, the two companies will cooperate on carrying out a vehicle-based fleet
platforms. In 2019, we conducted a pilot project for an on-demand shuttle service in solutions business, developing local service-specialized vehicles and building an ecosystem,
2.5 Contributing to the Development collaboration with KST Mobility, targeting the Eunpyeong New Town region, as a special and identifying new mobility services. We will continue to expand our business areas
of Local Communities case project for the ICT regulation sandbox demonstration. Our plan for 2020 is to identify to include the overall mobility value chain, ranging from fleet management to mobility
various models of cooperation aimed at advancing the taxi mobility market in Korea, such as services, in addition to the existing vehicle development and sales markets, and thus
Our System developing and applying a taxi-only telematics platform. expedite our transformation into a smart mobility solution provider.
Strategic investment in Ola, India’s No. 1 car hailing company (Mar. 2019)
• Signed an agreement for investment and strategic business cooperation
‒ Aim to provide an integrated fleet solution, including the development of
Sustainability Magazine service-specialized vehicles and vehicle management and maintenance,
through mutual collaboration
1 Establishing Mocean, a smart mobility

solution company in Korea
2 Investment in and collaboration with
1 2
Ola, a car hailing company in India
021
1 Introduction
Smart Mobility Technology
Cutting-edge In-vehicle Technology, Enabling Seamless Connectivity

Materiality Analysis Thanks to car-to-home functions that connect vehicles with homes through the Internet of Things (IoT), we can control not only lighting and air-conditioners but also smart plugs1) and other 1)
Outlets that can be remotely
appliances inside homes directly from vehicles. Hyundai’s Kona Hybrid already provides car-to-home functions, and we have also developed a technology that enables the use of a vehicle as a controlled
means of payment. The new payment system uses the method of entering credit card information in an infotainment system, and is applied to our newly developed 6th generation infotainment
system. We plan to increase the scope of payment to include services that are more closely connected to daily life, such as coffee chains and electric vehicle stations.
Our Commitment
2.1 Smart Mobility-based

Customer Experience Innovation Automatic over-the-air navigation system update service for the Genesis G90
As automotive software becomes increasingly important, the over-the-air (OTA) software This is Korea’s first in-car payment system and it allows convenient payments to be made
update function is also gaining in importance. This function allows OTA downloading of the from inside one’s vehicle. When drivers enter partner gas stations and parking lots, a payment
- Smart Mobility Technology latest software for vehicles, including for the navigation system. Drivers of a model that supports information window is displayed on the navigation system screen. This convenient service
- Customer Experience the OTA update function can conveniently use their vehicle without having to go through the enables the driver not only to make a payment, but also to use membership and mileage
Innovation cumbersome process of visiting a workshop to update each function’s software to the latest services by simply touching the window. The system also features a handwriting recognition
version or downloading data and connecting it. The Genesis G90, the 8th generation Sonata, technology that allows the driver to operate the system by writing letters on a touchpad. By
2.2 Pursuing Eco-friendly Value and the New IONIQ Electric all offer more convenient services thanks to the OTA updates. tapping letters and numbers on the touchpad using the fingers, drivers can set a destination
throughout the Entire Value Chain or make a phone call without having to use the keyboard on the navigation system screen.
The OTA service for a navigation system was originally adopted for the Genesis brand,
2.3 Creating a Sustainable beginning with the G90, and its automatic OTA update service will be consecutively
Supply Chain
implemented according to the timing of the recently distributed navigation system map and Building the OS and platform, key technologies for connected car services
2.4 Building a Healthy Corporate software upgrade. The navigation systems of around 2,500 previously sold G90 vehicles will Hyundai Motor Group has built a stable connectivity environment and is developing an
Culture be automatically updated through this service, making Hyundai the first company in Korea to advanced software platform capable of rapidly processing and handling massive amounts
launch the automatic navigation system OTA update service. of data. The “ccOS” is a connected car operating system, designed for Hyundai and Kia
2.5 Contributing to the Development products to operate efficiently and control the high-performance systems of connected cars.
of Local Communities The adoption of ccOS as the basis has made it possible to expand and advance connected
Cutting-edge infotainment system car services, including smartphone and smart home connection services, intelligent remote
equipped with an AR navigation and in-car payment support, complete autonomous driving, smart traffic, and the mobility hub. In addition,
Our System
Hyundai Motor Group has completed the development of a cutting-edge infotainment compatibility among models has been secured, thus enabling the use of standardized software,
system equipped with a navigation system that provides route information based on which in turn will lead to enhanced stability and economic efficiency. To this end, Hyundai
augmented reality (AR) and an in-car simple payment function. This system has now Motor Group has created a dedicated research organization and completed the architecture
been introduced to the new Genesis model for the first time. The newly developed 6th design. Moreover, it is leading the commercialization through diverse simulation tests.
generation infotainment system features innovative technologies designed to strengthen
the connectivity between passengers and vehicles, including the AR navigation system,
Sustainability Magazine in-vehicle payment system, and handwriting recognition. The AR navigation system is a
technology that adds accurate virtual driving lines on top of actual driving images while
providing route information, in order to help drivers with road recognition. It indicates routes
in graphics, thereby delivering intuitive driving information when compared to previous
navigation systems that provided route information on top of a map. Furthermore, the
system uses the information on traffic lanes, vehicles in front, and distance from pedestrians
collected through the sensors of the advanced driver assistance system (ADAS) to determine
whether the driver has departed from the lane or there is a risk of a collision, in which case
an alarm is activated and the driver is informed of a hazardous situation through the AR 1 Augmented reality (AR) navigation
navigation system, thereby supporting safe driving. 1
system
022
1 Introduction
Open Innovation Activities and Bases for Open Innovation
2 Sustainable Performance Hyundai’s in-house startup program Official opening of the CRADLE Beijing in China
Hyundai Motor Group has been nurturing in-house startups since 2000 in order to generate With the official opening of “CRADLE Beijing” in China, Hyundai has completed five major
new ideas about innovative products and services. The program has produced 53 in-house global innovation bases for open innovation. China is the world’s largest automobile
Sustainability Management startups as of March 2020, 13 of which have been successfully spun off from Hyundai. In market as well as one of the world’s top two startup countries. CRADLE Beijing is therefore
Materiality Analysis addition, 10 companies have completed preparations for spin-off so far in 2020. anticipated to serve as a hub that shares China’s innovative solutions with the rest of the
world. Moreover, we will discover, invest in, and foster promising startups to take the lead
In the early stage, in-house startups were mainly focused on the auto parts-related business. in the dynamically changing automotive industry paradigm through five major global
However, their targets have been widened to include a wide range of future-oriented innovation bases. We will also strengthen our collaboration with startups in a way to develop
Our Commitment
business fields, such as mobility, blockchain, IoT, and eco-friendly materials. Since 2018, future competitiveness.
2.1 Smart Mobility-based we have expanded the scope and scale of the program by including the employees of
Customer Experience Innovation Hyundai Motor Group affiliates as target participants, with the goal of developing innovative
technologies and fostering the entrepreneurship of our employees. Building a joint collaboration system with Taavura of Israel
In October 2019, Hyundai signed an MOU with Taavura Group, the largest logistics mobility
- Smart Mobility Technology company in Israel, to secure future technologies. Taavura is attracting considerable
6 new in-house startups moved in, 10 startups are in the spin-off
- Customer Experience and 4 startups were spun off in 2019 process in 2020
attention as an innovative company in Israel. Notably, it established the Taavura Innovation
Innovation Center, which discovers and fosters promising startups, and is focusing its competencies on
developing innovative technologies in diverse fields. With the signing of the MOU, we have
2.2 Pursuing Eco-friendly Value
throughout the Entire Value Chain 6/4 10 been able to build a joint collaboration system with Taavura in various areas of innovation,
such as discovering new business opportunities, and investigating and evaluating new
technology trends.
2.3 Creating a Sustainable
Supply Chain HYUNDAI CRADLE – Berlin HYUNDAI CRADLE – Beijing
ZERO1NE Day, a grand festival of creative talent • Opened in April 2019 • Opened in September 2019
2.4 Building a Healthy Corporate • Concept development for • A hub to share innovative
Culture Hyundai opened ZERO1NE, a new concept of open innovation platform, in Seoul in March
smart cities and mobility solutions developed in China
2018 with the goal of creating an ecosystem for creative talents. In 2019, we held the services
2.5 Contributing to the Development “ZERO1NE Day”, and introduced various creativity programs that are not easily accessible in
of Local Communities daily life. In addition, we provided opportunities for the general public to directly participate
in the process, enjoy themselves, and fully demonstrate their creativity. Thus, we offered
Our System an arena for communication that blurred the boundaries between creators and the general
public, a place where everybody came together to try out new ideas and methods. Hyundai
Motor Group anticipates that ZERO1NE Day will promote the building of new networks HYUNDAI CRADLE – Silicon Valley ZER01NE
among creative talents and foster opportunities for new open innovation, while contributing • Opened in September 2011 • Opened in March 2018
3 Sustainability Factbook • Identifying emerging innovations • Creating synergy in
to establishing a more mature startup ecosystem.
and market sensing fostering creative talent
• Securing strategic intelligence • Expanding platforms for
open innovation
HYUNDAI CRADLE – Tel Aviv

• Opened in October 2018
• Securing core technologies
in security and AI
1, 2 ZERO1NE Day, a grand festival of

1 2
creative talent
023
1 Introduction
Safety and Quality Innovation
Hyundai’s quality-centered philosophy is focused on producing “zero-defect vehicles with no breakdowns”, and our customer-focused quality management centers on this target. We have
2 Sustainable Performance created an organization dedicated to safety parts that plays a central role in implementing preemptive quality-oriented activities, beginning with vehicle development. We have strengthened
our systems for after-sales, regarding early detection, early improvement, and early measures to be taken, in order to prevent any minor safety issues from becoming serious. These proactive
quality services are now an integral part of our commitment to customer satisfaction. We also focus on active safety technology by applying the state-of-the-art advanced driver assistance
Sustainability Management system (ADAS), which detects objects around the car and alerts the driver to hazardous conditions or potential hazards. In 2019, we completed the development of the 3rd generation platform,
Materiality Analysis and applied it to the 8th generation Sonata. Based upon the strengths of our commitment to safety and quality, we tied for the most IIHS Awards, a well-known collision test in the U.S., in the
global automotive industry for two years in a row. Going forward, we will strive to offer vehicles characterized by the highest level of quality and state-of-the-art safety features through our on-
Mid- to Long-term Goals going development and application of new safety technologies.
Our Commitment
Lot tracking system 3rd generation platform
2.1 Smart Mobility-based Hyundai’s lot tracking system is a safety system that utilizes lot numbers to identify the A car platform is a compatibility package for major parts which enables multiple models
Customer Experience Innovation
causes of any problems with a product during manufacturing. The system enables us to to be manufactured on a single structure. It is an important foundation in determining a
- Smart Mobility Service manage the risk of defects in products built with parts originating from the same lot. Driven vehicle’s fundamentals, including design, driving performance, safety, and interior space.
by our complete focus on customer safety, we systematically manage all potential issues Hyundai developed our 1st generation integrated platform back in 2008, followed by the
with products, beginning with parts, in order to prevent problems from occurring. This 2nd generation platform in 2015. Notably, the 2nd generation integrated platform earned
- Customer Experience system is currently deployed in Korea and will be expanded to all of our overseas business recognition for delivering the highest level of collision safety in the automobile industry.
Innovation
sites in the near future. Following extensive R&D, we completed the development of the 3rd generation integrated
platform in March 2019, with greater safety on the back of energy absorption rate
maximization, cabin frame preservation, and stable vehicle posture at the time of collision,
throughout the Entire Value Chain Automated inspection system for electronic systems of ADAS compared to the previous platform. This 3rd generation platform has been applied to the
2.3 Creating a Sustainable In November 2018, Hyundai developed the world’s first automated facility for the inspection 8th generation Sonata, enabling us to offer customers excellence in design, safety, and
Supply Chain and correction of six electronic systems of ADAS in a single process through continued convenience.
research and development of production technology, in order to ensure the reliability of
2.4 Building a Healthy Corporate products that use the latest cutting-edge technologies. It was set up in 2019, and pilot
Culture operation is underway at the Hyundai Dongbu Service Center. It will officially be opened
once we receive all relevant safety certifications, which is expected to occur in 2020. 3rd generation platform
Through this technology, customers can see how actual inspections and corrections take
place during maintenance of the ADAS. Going forward, we will increase the use of this
system at our production sites and service centers, with the goal of enhancing customer
Our System confidence in the quality and safety of Hyundai vehicles, and also improving customer
Moved
to the
rear
convenience.
Various driving
3 Sustainability Factbook Applied automated inspection system for electronic systems of ADAS, Arranged lower
environments
using a collaborative robot for maintenance

(1st floor of the Hyundai Dongbu Service Center in Seoul) Design-friendly Platform Safety-first Platform Energy-efficient Platform Fun to Drive Platform
Sustainability Magazine After obtaining safety
Sep. 2019 1Q 2020 2Q 2020 • Engine room, seat, underfloor, • Design optimization to rearrange • Improve power and fuel • Active driving performance that
certificates
luggage room, etc. are arranged the body structure → Average efficiency by installing the provides immediate response to
Plan to acquire lower → More interior space strength increase of 10%, Smartstream powertrain and the driver’s intention and stability
Completed Began pilot safety certification Plan to name the • The overall height is lowered and average weight reduction of by using engine room flow in various driving environments
installation operation in relation to the inspection system the cowl point is moved to the at least 55 kg control technology
collaborative robot rear compared to the previous • The multi-load path structure for • Improve power and fuel
platform → More dynamic ratio collision energy dispersion efficiency by positioning the
in design • More use of ultra-high strength underbody lower and making
steel sheets and hot stamping it flat to reduce air resistance
→ Maximized strength of the
passenger space
024
1 Introduction Hyundai earns the highest levels of recognition at the 2020 IIHS Awards Multi load path structure results in outstanding collision safety
At the 2020 Insurance Institute for Highway Safety (IIHS) Awards, known as the world’s most Hyundai has adopted a multi load path structural design which effectively absorbs energy
stringent evaluation of vehicle collision safety, 11 Hyundai models were officially recognized in the event of a front crash. This in turn considerably reduces the impact of a collision on
2 Sustainable Performance as safe vehicles. In particular, the Nexo and the Genesis G70 and G80 received the Top passengers. We have increased the width of subframes and strengthened the connections
Safety Picks+ (TSP+) rating that signifies the safest of vehicles, with the TSP+ only being between the side members and the surrounding frame member so that energy impacted
given to those vehicles which earn the highest grade in every test category. In addition, on the front of the vehicle is dispersed throughout the entirety of the frontal structure. In
Sustainability Management eight models – the Avante (Elantra), i30 (Elantra GT), Veloster, Sonata, Kona, Tucson, Santa addition, the main parts of the car body make extensive use of high strength steel, and many
Materiality Analysis Fe, and Palisade – received the Top Safety Picks rating. parts are manufactured through hot stamping, thereby maximizing the strength of the cabin
frame. Thanks to the multi load path structure, the impact of a collision can be absorbed
Mid- to Long-term Goals In order to win the TSP+ rating, a vehicle must earn an advanced or superior rating for front more effectively, and passengers are afforded even greater safety protection.
crash prevention. It must also receive good ratings in the driver-side small overlap front,
Our Commitment passenger-side small overlap front, moderate overlap front, side, roof strength and head Multiple Load Path Structure of the 8th generation Sonata
restraint tests, as well as headlight categories. These achievements therefore attest to
Hyundai’s excellent level of safety. We have improved collision safety by applying the latest
technologies to the design of our car bodies, and by substantially increasing the application
- Smart Mobility Service of lightweight and solid steel sheets. We are also applying a wide range of technologies to
- Smart Mobility Technology reduce the risk of injuries caused by a second collision. 1 Fender apron
1
3 2 Dash cross member
- Customer Experience 2
Top Safety Pick+ Results of Nexo 5 3 Side member
Innovation
4 4 Radiator support
Crashworthiness Crash avoidance & mitigation Child seat anchors
2.2 Pursuing Eco-friendly Value 5 Subframe
throughout the Entire Value Chain
Small overlap front: Headlights LATCH ease of use
2.3 Creating a Sustainable driver-side
Front crash prevention: Internal collision testing under strict conditions
Supply Chain Small overlap front: vehicle-to-vehicle
Hyundai is improving its collision safety further by undertaking internal testing with more
passenger-side Front crash prevention:
2.4 Building a Healthy Corporate numerous and stricter conditions than are imposed by the collision safety evaluations run by
Culture
Moderate overlap front vehicle-to-pedestrian external organizations. We verify the design safety of our vehicles by subjecting new models to an
Side average of 150 collision tests or more. In addition, we are adopting a range of the most advanced
2.5 Contributing to the Development safety technologies in order to meet the requirements of segmented collision safety tests – the
of Local Communities Roof strength
Nexo is equipped with behavior and control technology in order to increase behavioral stability
Head restraints & seats after an accident. Furthermore, we have developed and now apply a “center side airbag” to our
Our System vehicles1) in order to meet the increasingly stringent requirements of side crash tests.
Superior Advanced Basic Good Acceptable Marginal Poor
Small overlap | Oblique crash Rear offset crash
48km/h, Rear,
100% overlap
40km/h, 30° oblique
80km/h, Rear,
70% overlap
64km/h, 25% offset
Frontal offset crash Side impact crash
62km/h, 27° side MDB2)
1)
56km/h, Front 50km/h, 55km/h,
Applied to the Genesis GV80,
29km/h,
90° side MDB2) 90° side pole and will be gradually applied to
2019 Hyundai Nexo driver-side other models
64km/h, 40% offset
small overlap IIHS crash test 32km/h, 75° oblique pole 2)
Moving Deformable Barrier
025
1 Introduction
Establishment of a Brand Vision for Sustainability

Materiality Analysis Hyundai has established a new brand vision and system to promote progress in our daily lives and to provide customer experiences with outstanding value. Our customers include not only
owners but users and communities as well, and the Hyundai brand will offer distinctive customer experiences in line with the demands of various types of customers at all contact points.
In particular, we will present such customer experience factors as “unlimited mobility” and “uncompromised sustainability” to users who intermittently use vehicles even though they do
not own one, or to communities that we directly or indirectly impact. This will enable us to create business models that can generate freedom of mobility through such mobility services as
Our Commitment
car sharing and car hailing services. We will also be able to take the lead in decarbonization by continually developing and supplying EVs and FCEVs that do not generate carbon emissions.
Our Brand Our Customers Our Customer Experiences Components of Customer Experiences
Trusted Companion Identity Invisible Agility
Establish an ecosystem where mobility users and suppliers in each city
Innovation We improve the driving experience:
can settle down without feeling sense of difference
Personalised experience, intuitive use, proactive response.
(Product Identity) Direction
2.2 Pursuing Eco-friendly Value Our Vision Owner Hassle Free
Warm Tech
Bespoke
throughout the Entire Value Chain Experience Solutions
Progress for humanity • Easy • Thoughtful • Flexible
Supply Chain
Maximised Expression • Seamless • Human-centered • Optimised
• Intuitive • Harmonious • Customised
We pursue innovative solutions in design, and
Example
2.4 Building a Healthy Corporate add emotional value to our product experience through Car sharing Connected services Micro mobility
Culture Sensuous Sportiness design language. (Design Identity) City user accessibility, Vehicle as a platform, Evolutionary innovations
anytime, through signature connecting services and that respect the existing
2.5 Contributing to the Development service offerings and business models, through mobility systems and
of Local Communities product availability, mobility service platforms add value to mobility
Individualised Services tailored to your lifestyle connecting data and partners ecosystems
Our System User We build familiar and friendly channels by providing

an optimized omni channel experience based on
Our Purpose a data-driven understanding of the customer.
Identity Hydrogen Society
Creating a society where CO2, smoke and noise are lost,
3 Sustainability Factbook Connecting people with where humans and nature coexist in a leisurely way by expanding our business
from cars to ships, rail cars and power generators
quality time Unlimited Mobility Direction
Energy Security Eco-friendly Momentum
Sustainability Magazine Develop business models through complete connectivity
and freedom of mobility with car sharing, vehicle-call service • Replace petroleum oil • Reduce carbon emissions • Promote joint growth with
and last mile solutions. (reducing dependence on
• Respond to environmental the relevant industries
overseas supplies of fossil (including new and renewable
fuels such as petroleum and regulations
energy; chemicals and steel;
gas) new materials; machinery and
Community equipment; construction; and ICT)
Uncompromised Sustainability Application

It leads to decarbonisation and helps minimise global share
of waste by supplying zero emission electric vehicle
and hydrogen fuel cell electric vehicles. Other OEMs Vessels Forklifts Trams & Trains Power Generators
Automobiles Maritime Heavy Industry Rail Industry Energy
026
1 Introduction
Brand Communication Strategy & Campaign
Hyundai has set main communication principles, focused on our brand vision and purpose, 2019 Re:Style
2 Sustainable Performance with which we aim to form a consensus that adding sustainability to society and the “Re:Style” was created to spread an upcycling trend across the globe through a unique
environment is a wise way to enable everyone to enjoy a more enriching life. To this end, we collaboration between the automobile and fashion industries. Under the theme of “re-use,
have established three message pillars – clean mobility, connected mobility, and freedom in re-think, new style”, we unveiled clothes that were made by up-cycling disused leather
Sustainability Management mobility – and are carrying out diverse forms of brand communication in order to establish a car seats while communicating with global influencers on the issue of sustainability. The
Materiality Analysis sustainable, innovative, and intelligent brand image. event was aired by major global media outlets, attracting more than 420 million views, and
also received media exposure on more than 140 occasions in Korean and overseas fashion
Mid- to Long-term Goals Message Pillar magazines and traditional media, thereby contributing to publicizing Hyundai’s eco-friendly
brand image.
Our Commitment Clean Connected Freedom
Mobility Mobility in Mobility
2.1 Smart Mobility-based Because of You campaign together with BTS
Clean mobility is not a Reclaiming our time in Freedom in mobility After announcing our new brand vision, “Progress for Humanity”, we have been making
- Smart Mobility Service reluctant obligation but an transit by connecting people expands our world and continuous efforts to share our message that the future technologies we aim to develop will
invitation to world that is back to what shapes and the possibilities within it. be people-oriented, under the theme “Because of You”. Particularly through a campaign
higher quality in every way. uplifts them. carried out together with BTS, we are communicating with people regarding hydrogen-
based clean mobility as a socially and environmentally responsible brand. We are also
Innovation
planning long-term communication of various methods to inform millennials about
Brand Image hydrogen, a subject they may find to be somewhat unfamiliar.
Sustainable Innovative Intelligent
2.3 Creating a Sustainable H2 Economy Today presented by Hyundai and Bloomberg Media Group
Supply Chain • Hyundai X BTS • Redbull Youth • H-MEX Hyundai is taking the lead in building a hydrogen-based society, going beyond an automaker
• Re:Style “Can you make it?” • The Economist / producing FCEVs. As part of this effort, we joined hands with the globally renown Bloomberg
2.4 Building a Healthy Corporate Bloomberg Media Group to launch a campaign aimed at raising public understanding and awareness of
• For Tomorrow
Culture
(Hyundai X UN) hydrogen energy and widely publicizing the economic benefits and environmental changes
2.5 Contributing to the Development that could result from the shift to a hydrogen-based society. To this end, we are ranking
of Local Communities each country’s hydrogen power generation status based on facts and data in addition to
creating content on cases of change brought about by hydrogen, ranging from daily life
to each industry. This will enable customers to understand our vision regarding hydrogen
Our System energy, and to actively take part in our efforts to establish a hydrogen-based society.
1 2019 Re:Style
2 Because of You campaign together
with BTS
3 H2 Economy Today presented by
1 2 H2 Economy Today presented by 3
Hyundai and Bloomberg Media Group
Hyundai and Bloomberg Media Group
027
1 Introduction
Customer Communication & Experiences Services
2 Sustainable Performance Hyundai Selection, a mobility life subscription service Driving Experience program
Hyundai launched “Hyundai Selection”, a monthly subscription program to use vehicles that is Hyundai runs the “HMG Driving Experience” program in Inje, Gangwon Province to allow
the first of its kind in Korea. Hyundai Selection allows users to pay a monthly fee and to change visitors to experience the performance of diverse vehicles available from Hyundai, Kia Motors,
Sustainability Management models up to three times per month from among the Sonata, Tucson, and Veloster, without and Genesis. We offer a wide range of programs so that a greater number of customers can
Materiality Analysis any restrictions on mileage during the usage period. It is expected to reduce the cumbersome experience the driving performance of diverse vehicles and the pleasure of driving.
process of owning and maintaining vehicles for customers in line with the global sharing
Mid- to Long-term Goals economy trend, and to enhance customer convenience. We will make continuous efforts to
increase the models and the number of products while also cooperating with various partners Hyundai Motorstudio Goyang adopted service robots
Our Commitment to develop the service into a mobility life subscription platform that covers extensive areas Hyundai Motorstudio Goyang, the largest experiential automotive theme park in Korea,
ranging from mobility to parking. adopted three voice-activated robots with artificial intelligence (AI), and thus introduced a
new concept of customer service. The service robot is equipped with an autonomous driving
function that enables it to detect obstacles in its surroundings so that it can move around
- Smart Mobility Service H-ear, an open customer communication platform unimpeded. It uses its AI voice recognition function to provide onsite route information as well
- Smart Mobility Technology Hyundai is the first company in the industry to operate an open customer communication as facility information to customers. We will use the data collected by the robots to identify
platform “H-ear” that listens to customer opinions and suggestions online and develops consumers’ interests, such as vehicle preferences, popular facilities and promotions, with the
products and services together with customers. H-ear is the result of the expansion and goal of providing customer-tailored services. The adoption of service robots is expected to
Innovation
reorganization of “H-Ombudsman”, a customer communication program that we have been offer a new kind of enjoyment and experience to customers who visit Hyundai Motorstudio
implementing every year since 2016, into an online version. We have expanded the area to go Goyang, and to enhance operational efficiency at times when there are many visitors.
beyond the previous approach, whereby selected participants held offline gatherings, and to
allow anybody to freely suggest ideas about Hyundai, as well as cars in general, at any time.
Supply Chain

Culture

of Local Communities Open Communication Platform “H-ear”
How to become a member and use the platform Directions for 2020
Our System
• Participate as a “panel” • The Lab is opened on • A membership card is 01 Strengthen survey platform functions
in the Lab, a space various themes under six issued to each panel, and • Improve the process for making a suggestion
3 Sustainability Factbook where people can share categories, and panels membership cash that can (register, review, feedback)
ideas, after signing up suggest their ideas or/and be used like cash is awarded • Create a survey-only Lab
• Enhance customer survey convenience
for a membership engage in discussions on to panels who actively
Sustainability Magazine on the website registered questions participate and who submit 02 Expand the panel pool and increase MAUs1)
outstanding ideas • Use internal and external channels and
- Products strengthen events according to purpose
(car, new technology, • Improve the reward program
eco-friendliness)
• Create distinctive content
- Customer services
- Maintenance services 03 Strengthen usability for internal and
- Sales channels external users
- Markets & trends • Develop an app
- Others • Develop convenience functions and improve UI/UX
1) 1 H-ear, an open customer

Monthly active users 1
communication platform
028
1 Introduction
Customer Services
Hyundai strives to provide the best service possible to our customers. We ensure that our Service Brands
External Evaluation on
2 Sustainable Performance customers use their cars safely by leveraging our customer service infrastructure across the Bluehands is Hyundai’s official service supplier, and our extensive network enables us Customer Satisfaction
nation, while also making continuous efforts to help them use and manage their cars more to provide efficient services at locations that are close to our customers. Bluehands also
makes improvements aimed at enhancing customer safety and convenience. National Customer
conveniently and cost-efficiently.
The Bluemembers membership service is open to all Hyundai vehicle owners. It enables Satisfaction Index (NCSI)
Sustainability Management our customers to derive even more enjoyment from their vehicles, and to use our services
Materiality Analysis with absolute convenience.
Improving service base experiences
Blue Link is Hyundai’s connected car service. It offers customers a wide range of functions
Mid- to Long-term Goals Our service bases provide maintenance and other services, and also serve as a customer and services, including remote vehicle control, safety and security, vehicle maintenance, 1st place at 6 segments1)
communication channel. Our nationwide network of some 1,400 bases consists of directly route information, and concierge functions.
Our Commitment operated service centers and Bluehands, our official service supplier. We also developed Korean Standard-Quality
Autolink offers Blue Link services to our overseas customers. It provides driver
location-based services, such as a gas discount service, and the driving-pattern-big-data- Excellence Index (KS-QEI)
a standard model for the customer experience management center and began a pilot run,
2.1 Smart Mobility-based based insurance discount service. It also supports sharing services such as the car sharing
centering on the Garak office building, in June 2020. and car hailing businesses.
- Smart Mobility Service 1st place at 4 segments2)

Strengthening global services Service System in Korea
- Smart Mobility Technology for 9 years in a row
In 2019, we advanced the global service operation system in response to changes in the Service system Details
- Customer Experience Korean Customer Satisfaction
automotive market and customer paradigm. We adopted a non-face-to-face customer Make a visit to a location designated by customers and provide vehicle maintenance
Innovation Before Service Index (KCSI)
total care service that allows service booking, real-time notification of one’s car repair and counseling services for safe driving
status, and information on close service centers through the “WhatsApp” messenger Blue Basic Inspection Provide free inspections eight times in eight years for members of Bluemembers
service, which has a large market share across the globe. In this way, we are saving Emergency Provide an emergency dispatch service when vehicles or engines sold by Hyundai
customers’ time as well as offering more convenient services that enable customers to Dispatch Service do not either start or operate properly 1st place at passenger vehicle
2.3 Creating a Sustainable receive maintenance services without having to visit service centers. Provide exclusive services by an expert, ranging from customer response, and RV segments
Supply Chain One-Stop Service consultation, vehicle repair and process management as well as explanations to
customers after-sales service Korean Standard-Service
We are making continuous efforts to enhance customer satisfaction and improve service
2.4 Building a Healthy Corporate Pick up vehicles at a time and location designated by customers and deliver the Quality Index (KS-SQI)
quality at our global customer contact points. We held the Global Service & Warranty Home-to-Home
Culture vehicles to desired locations after repair for customers who find it difficult to visit a
Conference to give shape to service strategies in line with the direction of the Customer Service repair center 1st place in the after-sales
Experience Division, that is in its third year of operations. Service directors from major service segment
2.5 Contributing to the Development Excessive Maintenance Offer a maximum 300% compensation for excessive repair cost bills and provide
of Local Communities regions were invited to share our mid- to long-term service and warranty strategies Prevention Program detailed information on repairs beforehand to increase customer trust China Automobile Customer
and outstanding cases of each region, with the goal of offering consistent customer Satisfaction Index (CACSI)
Enable customers to use all service and benefits offered by Hyundai through
experiences in our global operations. We also established a work system to implement myHyundai
an integrated customer service mobile app
Our System specialized strategies that reflect each region’s characteristics in accordance with 1st place in the maintenance
Visiting Charging Make a visit to a location that customers desire and provide free EV charging for service segment
regionalization. In addition, we held the 13th biennial World Skills Olympics in Seoul Service 7 kWh that allows a driving distance of 22-44 km
to develop the competitiveness of our global service sites to the level of the excellent
Provide a rental car service when a defect arises during the warranty period for the
3 Sustainability Factbook maintenance capabilities of our service sites in Korea. A total of 117 mechanics and Rental Car Service duration in which the vehicle cannot be run so as to reduce customer grievances and
1)
Compact, semi-medium, medium,
semi-large, large, RV
managers from 57 countries were invited to Seoul, enabling outstanding mechanics improve convenience
2)
across the globe to come together to review their skills and strengthen ties. Semi-medium, medium, RV,
Flexible Warranty Service Enable customers to choose a warranty period to suit their particular lifestyle
after-sales service
Special Services for the Genesis Brand
Service system Details

G90 Customer Satisfaction Inspection The Genesis G90’s unique and distinctive service where a visit is made at a time and location designated by customers, two weeks after vehicle processing
Genesis Butler Service Exclusive butler service for each Genesis customer
Genesis Visiting Auto Care Service Make a visit to a location that customers desire and provide a replacement service for engine oil and other consumables
Genesis Airport Service Offer a valet service free of charge to Genesis customers who use Gimpo International Airport, and provide a replacement service for consumables (Mobility Care) service while traveling
Genesis Home-to-Home Service Provide high-quality service by a professional vehicle transport company as part of our Genesis Mobility Care service offered free of charge
029
1 Introduction
Protecting the Rights of Customers
2 Sustainable Performance Protecting customers’ personal information Marketing communications and product labeling
Hyundai runs the Personal Information Protection Committee, a company-wide decision- Hyundai ensures that its customer marketing does not infringe upon stakeholders’ privacy, Major Activities for Personal
making body whose remit is to establish, execute, inspect, and improve the plans for does not include double standards, and does not attempt to influence any vulnerable groups Information Protection
Sustainability Management protecting customers’ personal information. It is chaired by the Chief Privacy Officer (CPO), including children. We review our marketing communications in countries around the world
Committee activities
Materiality Analysis who is also the Head of Korea Business Division. The CPO is responsible for overseeing to ensure that they conform to all local legal, ethical and cultural standards, and we also take
the personal information management process. The Committee is convened twice a year, local opinions into full account. • Hold the Personal Information
Mid- to Long-term Goals Protection Committee’s general meeting
while the working-level sub-committee meets four times a year, and ad hoc meetings are and working-level staff meeting to
also held as and when required in order to respond to issues relating to the protection of establish a work plan for each sector,
Country Product labeling obligation evaluate annual activities, identify areas
Our Commitment personal information. of improvement, and establish a plan for
Product information: ID labeling (year of production, vehicle weight, work improvement according to major
2.1 Smart Mobility-based vehicle identification number, type of car, model name, tire, etc.)
amendments to the law
In addition, we have a series of management and information protection systems in place,
designed to secure the safety of customer information processing systems. These include Fuel efficiency (environmental) information: Fuel efficiency labeling; Assessment
Korea
- Smart Mobility Service the personal information system (PIS), homepage integrated personal information and exhaust gas-related sign
• Review the implementation status
- Smart Mobility Technology protection system, personal information monitoring (PIM) systems, image storage system, of measures aimed at ensuring the
and security assurance management system (SAMS). Product safety information: Airbag warning labeling, etc. stability of the corporate-wide personal
- Customer Experience information processing system on
Innovation Product information: ID labeling; VIN (Vehicle Identification Number, W/screen); a regular basis
Organization Chart of the Personal Information Protection Committee and anti-theft labeling • Conduct on-site assessments at major
business sites and bases, including
2.2 Pursuing Eco-friendly Value China regional headquarters, branches, service
Chairperson Chief Privacy Officer (CPO) ‒ Head of Korea Business Division Fuel efficiency (environmental) information: Fuel efficiency labeling
centers, vehicle processing centers, and
throughout the Entire Value Chain test driving centers
Product safety information: COC labeling; child restraint system (CRS) warning labeling
2.3 Creating a Sustainable Assistant Administrator Education and training
Supply Chain Head of Korea Business Strategy Group Product information: ID labeling (vehicle weight, WVTA certification number, etc.);
CPO in charge of Compliance and E-mark for various item certification (lamp, safety belt, horn, tire, mirror, glass, etc.) • Provide compulsory training to the
Execution Assistant Administrator legal affairs Team Leader personnel responsible for handling
Data Intelligence Team Leader Fuel efficiency (environmental) information: Refrigerant labeling; diesel engine personal information by task and
Culture position
EU car smoke labeling (corrected absorption coefficient value indication); battery recycling
labeling; and fuel labeling • Provide online training to the personnel
2.5 Contributing to the Development responsible for handling personal
of Local Communities information
Category CPO Working-level Member Product safety information: Airbag warning labeling; temporary spare tire (if provided)
speed alert labeling; brake fluid labeling; and ISOFIX CRS anchor labeling Management of
Data Intelligence Team Leader,
Our System external service providers
Integrated VOC Team Leader, Product information: Manufacturer’s suggested retail price (MSRP) labeling
Sales and Membership Head of Korea Business
Customer Experience Strategy (Fuel efficiency, NCAP information, etc.) • Provide off-the-job training to providers
Information Strategy Group of the personal information processing
Team Leader,
service (first half of every year)
Corporate Responsibility North America Fuel efficiency (environmental) information: VECI labeling (certified exhaust gas data);
3 Sustainability Factbook Team Leader (U.S., Canada) and refrigerant labeling • Conduct on-site assessments of the
providers of the personal information
processing service (second half of
Service Customer Information Head of Service Operation Group Service Planning Team Leader Product safety information: Tire air pressure information labeling; every year)
safety certification labeling; and airbag warning labeling
Sustainability Magazine Head of Commercial Commercial Vehicle Customer
Commercial Customer Information Improvement
Marketing Group Value Management Team Leader
• Execute immediate improvements
Blue Link Membership Head of Infotainment Architect and application to Hyundai’s policies,
Connectivity Team Leader
Information Group work processes, systems, and forms
in the event of amendments to the
Information Security 1 Information Security 1 relevant laws or changes in the relevant
Information Protection organizational policies and guidelines
Team Leader Team Leader
• Identify areas of improvement through
Employee Information Head of HR Management Group HR Management 2 Team Leader regular internal reviews, followed by
making improvements and reaffirming
execution
* As of May 2020
Performance & Commitment
Smart Mobility-based Area of Implementation 2019 Outcome & Mid- to Long-term Plan
Customer Experience • Applied the Highway Driving Assist II (HDA II) system to the new Genesis SUV – GV80
(Dec. 2019)
• Mass-produce Level 3 autonomous vehicles capable for highway driving (by 2021)
• Mass-produce Level 4 autonomous vehicles capable of urban driving for fleet operations
Innovation
Smart Mobility Solution Provider by 2025 (pilot robo-taxi service) (by 2024)
• Fully commercialize Level 4 autonomous vehicles (commercialization of a robo-taxi service)
Smart (by 2030)
Mobility
Hyundai’s smart mobility solutions are Urban mobility solutions • Conducted a trial run of BotRide, a ride sharing service that uses Hyundai’s autonomous driving vehicle, in Irvine, California (Nov. 2019)
Service
achieving new levels of advancement each
Last mile mobility services • Began to provide pilot service for Shucle, a Korea’s first on-demand ride-pooling (car-sharing) service equipped with an AI platform (Feb. 2020)
day, including autonomous driving vehicles
Collaboration ecosystem and • Established Mocean, a smart mobility solution company that offers an integrated fleet management system to rental car companies in Korea (Nov. 2019)
that intelligently connect cars and people, strategic investment • Established Moceanlab, a subsidiary in charge of mobility demonstrations in the U.S., aimed at leveraging development and alliance capabilities in the local market (Nov. 2019)
and a mobility business that improves
utting-edge in-vehicle technology,
C
convenience and accessibility for the user. • Applied state-of-the-art infotainment system, equipped with an augmented reality (AR) navigation, advanced driver assistance system (ADAS) sensors, and in-vehicle payment system, to Genesis
enabling seamless connectivity
These varied products and services are Smart Open innovation activities and
• Opened CRADLE Beijing, serving as a hub that shares China’s innovative solutions with the rest of the world (Sep. 2019)
substantially improving mobility for people Mobility bases for open innovation
Technology
who had previously found it difficult to use • Completed the development of the 3rd generation platform, and applied it to • Increase the number of models to which the 3rd generation platform and ADAS are applied
Safety and quality innovation the 8th generation Sonata • Win IIHS awards (2020), and receive the high rating at the Euro NCAP (Every year)
automobiles. They are also creating social
• Tied for the most Insurance Institute for Highway Safety (IIHS) awards
value by helping to resolve problems regarding
Establishment of a brand vision for sustainability
urban transportation, and giving customers • Conducted brand vision communication to promote sustainability through Hyundai Re:Style, BTS campaign, and Bloomberg H2 Economy
Brand communication strategy & campaign
the pleasure of innovative experiences.
Customer • Launched an open customer communication platform “H-ear” (May 2019) • Strengthen survey platform functions by improving the process for making a suggestion
Hyundai will continue to generate new ideas Customer communication &
Experience ‒ Began to operate an open platform that enables the company to develop products and • Expand the panel pool and increase monthly active users
for customer experience innovation through experiential services
Innovation services together with its customers for the first time in the automobile industry • Improve usability for internal and external users by developing an app, improving UI and UX, etc.
smart mobility solutions. Customer services • Ranked No. in the after-sales service segment at the Korean Standard-Service Quality Index (KS-SQI) and the maintenance service segment at the China Automobile Customer Satisfaction Index (CACSI)
Protecting the rights of customers • Operated the Personal Information Protection Committee, conduct on-site assessments at major business sites and subcontractors, and provided trainings for each job type
2019 Highlights
Established a joint venture with APTIV New concept of mobility for the future Tied for the Most Combined IIHS Awards
Autonomous driving offers freedom in mobility and reduces the effort needed Seamless mobility is the key to future mobility. In 2019, Hyundai expanded the Hyundai’s Nexo, Genesis G70, and Genesis G80 models won the 2020 IIHS
to drive. Moreover, it is a barometer for assessing the automotive industry’s concept of mobility to include regions that are difficult to access using existing Awards, organized by the Insurance Institute for Highway Safety (IIHS) of the
prowess in cutting-edge technology. In 2019, Hyundai, with its globally means of transportation and broadened the horizons of seamless mobility. U.S., by being qualified for Top Safety Picks+ (TSP+), signifying the highest
recognized capabilities in hardware such as car design and manufacturing, These include the “Elevate”, which has four robot legs that utilize the latest in level of vehicle safety. In addition, eight models, including the Avante (Elantra),
established a joint venture with APTIV, a company that owns the world’s most robot and electric vehicle technologies, an electric scooter to give customers i30 (Elantra GT), Veloster, Sonata, Kona, Tucson, Santa Fe, and Palisade, were
advanced autonomous driving software, thereby emerging as a game changer the best experience in last mile mobility, and the “VEX”, a wearable robot to named as Top Safety Picks. TSP+ status is only awarded to products which
in autonomous driving. It will increase the level of accuracy for Level 4 and 51) assist overhead working in challenging environments. These new concepts earn the best possible grades in all test categories, thereby attesting to the
autonomous driving vehicles, which operate without driver intervention in an from Hyundai prove the unlimited potential of mobility. outstanding safety of Hyundai products.
optimal driving environment where the future mobility business environment
can be verified. We will also speed up moves towards the mass-production of
autonomous driving vehicles.
1)
Levels of driving automation standard for self-driving vehicles set by the Society of Automotive
Engineers (SAE). Among the six levels ranging from 0 to 5, Level 4 indicates a high level of
automation whereby vehicles do not need driver interaction under certain conditions. Level 5
is full automation whereby vehicles can perform all driving functions under all conditions.
Our Commitment 02
Pursuing Eco-friendly Value Hyundai has been making continuous efforts to reduce its ecological footprint
by producing eco-friendly vehicles and operating its business sites
throughout the Entire Value Chain in an eco-friendly manner. Moreover, we will lead the global industry shift
towards hydrogen-powered eco-friendly vehicles while also actively
taking action on climate change.
032
1 Introduction
Eco-friendly Vehicles
Strengthening Vehicles’ Eco-friendliness

Improving fuel efficiency Reducing the use of hazardous substances Hyundai’s Direction
Mid- to Long-term Goals to Improve Fuel Efficiency
Hyundai strives to improve fuel efficiency and applies new technologies in response to the Hyundai is committed to developing vehicles that customers can drive safely without
ever-stricter regulations regarding fuel efficiency, and in order to ensure its competitiveness worrying about hazardous substances. To ensure that our customers and their families are Improving fuel efficiency and
Our Commitment in fuel efficiency. Major markets, including the U.S., Europe and China, are set to reinforce not exposed to harmful substances within the confined space of a car, we are strengthening applying new technologies
2.1 Smart Mobility-based Customer their regulations after the new fuel efficiency regulations go into effect in 2020, including the inspection at each stage, ranging from product development to mass-production, and
Experience Innovation those related to fuel-economy standards and test mode beginning in 2025. Accordingly, conducting strict prevention activities. • Reducing tire friction and
Hyundai is changing its specifications to be more optimized to improve fuel efficiency, while air resistance
2.2 Pursuing Eco-friendly Value also accelerating the pace of developing key technologies. We use our in-house Material Analysis Management System (MAMS) to manage chemicals • Developing electrification
throughout the Entire Value Chain data per part, and we conduct regular inspections of our suppliers and analyze a real product technologies, such as 48V
- Eco-friendly Vehicles
in order to prevent the use of hazardous substances in the production of parts for Hyundai mild hybrid injection
Next-generation weight reduction technology vehicles. Moreover, in order to manage hazardous substances at our global business sites to technology
- Eco-friendly Business Site Weight reduction is a technology that improves not only fuel consumption efficiency the same strict standards as those applied at our business sites in Korea, we have established
but also dynamic performance. As the weight of vehicles continues to rise owing to an a hazardous substance regulation response system and are performing inspections Improving fuel efficiency
2.3 Creating a Sustainable increase in safety and convenience features as well as the rapid spread of electrification, the accordingly. In addition, we are actively looking into ways of using alternative substances on real roads
Supply Chain development of weight reduction technologies has been gaining importance. In response, even in vehicles and regions to which the regulations do not apply, thereby preemptively
Hyundai is striving to reduce the weight of its vehicles by integrating and optimizing the responding to the increasingly strict global chemicals regulations. • Applying eco technologies
2.4 Building a Healthy Corporate to reduce the power load
Culture structure of parts, while offering improved functions and performance for each system,
‒ LED light bulbs, high
including the body, chassis, and electronics. We are also making concentrated efforts
Recycling waste resources efficiency alternators,
2.5 Contributing to the Development to develop new lightweight materials and methods, such as aluminum and carbon fiber
solar panels, etc.
of Local Communities reinforced plastic (CFRP), in addition to 3rd generation sheets with improved formability Hyundai is building a resource circulation recycling system to enable the reuse of parts
• Applying optimized heating,
and outstanding performance. As a result, the 8th generation Sonata is around 59 kilograms used in our products and to generate added value. Our eco-friendly end-of-life vehicle
ventilation & air conditioning
Our System lighter than the previous generation. We will continue to innovate in order to make our processing/reusing network is creating a positive resource cycle in which recyclable parts
technologies
products lighter, thereby enhancing the performance and eco-friendliness of our vehicles are collected from end-of-life vehicles and subjected to an eco-friendly recycling process so ‒ Reducing the preheating
and providing customers with distinctive products. that they can be used in the production of new vehicles. This system is currently limited to time of powertrains;
iron and non-ferrous metals, but we are extending its scope to include non-recyclable items, and improving the
including plastics, rubber, glass, and seats, as part of our efforts to reuse as many materials energy efficiency of air
Technologies that use renewable energy from end-of-life vehicles as possible. conditioning systems and
Renewable energy is becoming increasingly important as a clean, unlimited energy. Against reducing the load
Sustainability Magazine this backdrop, photovoltaic power generation technology has recently become one of the With regard to plastics, we mix pellets produced through recycling with new materials,
most universal renewable energy-using technologies and can easily be seen in our everyday and then apply the mixture to functional parts, including wheel guards, undercovers, and
surroundings. Hyundai has installed photovoltaic power generation technologies in its shrouds. We have also developed a technology that converts seats into materials for parts
vehicles in order to reduce their greenhouse gas emissions. The 8th generation Sonata such as sound absorption and luggage partitions. Going forward, we will further expand the
Hybrid features a solar roof which enables the car to run on photovoltaic power for an annual scope of recycling by developing parts recycling technologies, thereby enhancing the value
maximum distance of 1,300 km without emitting any greenhouse gases. The adoption of of recycling. In addition, we will continue to support job training and provide field consulting
the solar roof has made it possible to reduce a single vehicle’s greenhouse gas emissions to our suppliers in a bid to strengthen their recycling capabilities. We will also focus on
by approximately 100 kg CO2eq per year. We are making active efforts to protect the developing technologies for recycling end-of-life vehicles and make concerted efforts to fulfill
environment by using renewable energy and are conducting R&D in order to fit subsequent our social responsibility by building an eco-friendly and circular economy.
models, in addition to the 8th generation Sonata Hybrid, with a solar roof. Furthermore, we
are developing solar cells made with a new material rather than the previous silicon material
so as to overcome the performance limitations of solar panels.
033
1 Introduction
Developing Eco-friendly Vehicles
2 Sustainable Performance Increased mileage of the new IONIQ Electric facelift Unveiling the NEPTUNE, a hydrogen-only concept for a heavy duty truck
Hyundai launched a facelifted version of the IONIQ Electric in May 2019 after increasing Hyundai introduced the NEPTUNE Concept, its first hydrogen-powered heavy duty truck,
the capacity of its lithium-ion battery from 28 kWh to 38.3 kWh, and improving its one- at the 2019 North American Commercial Vehicle Show. The name NEPTUNE reflects the
Sustainability Management time charge range (for mixed use) by 42%, from 191km to 271 km. Engine output was fact that the planet Neptune’s atmosphere is composed of 80% hydrogen, and also delivers
Materiality Analysis also increased, from 88 kW to 100 kW, and offers more dynamic acceleration. Thanks to the clean, eco-friendly image of hydrogen as a fuel. With an integrated structure that looks
these improvements, Hyundai customers can now enjoy eco-friendly vehicles without both simple and smooth, the NEPTUNE boasts a unique vehicle body which has been
Mid- to Long-term Goals having to be concerned about performance and range. created especially for a fuel cell electric truck and runs on a hydrogen fuel cell system. We
plan to launch the vehicle, predominantly in the North American market, in around 2024.
Our Commitment
Hi-Charger, a ultra-quick EV charger
2.1 Smart Mobility-based Customer
Hyundai has developed the “Hi-Charger”, a 350 KW ultra-quick EV charger that delivers Unveiling a fuel cell-powered high-speed electric bus for the police
Experience Innovation
the optimal EV charging experience thanks to the adoption of an automatic system that Hyundai unveiled a fuel cell-powered high-speed electric bus for the police in Seoul,
2.2 Pursuing Eco-friendly Value enables users to easily charge their vehicles without feeling the weight of a cable. We and also signed a memorandum of understanding (MOU) to expedite the development
throughout the Entire Value Chain aim to deliver our innovative brand image through a new EV charging experience, in of fuel-cell electric buses for the police. Because the use of air-conditioning and
- Eco-friendly Vehicles addition to expanding EV charging infrastructure. heating in conventional police buses inevitably results in engine idling in city centers,
if conventional police buses are replaced by pollution-free, fuel cell-powered electric
- Eco-friendly Business Site
buses, that are designed to operate with minimal vibrations and zero exhaust gas
Recycled EV waste battery ESS emissions, it is expected to reduce passenger fatigue and improve air quality. This new
Hyundai has launched a partnership with Korea Hydro & Nuclear Power (KHNP) to set fuel-cell electric bus was developed by equipping an existing police bus with a hydrogen-
Supply Chain
up and jointly operate a recycled EV waste battery energy storage system (ESS) business based fuel cell system. It can accommodate 29 passengers, including the driver, and has
2.4 Building a Healthy Corporate that will be the largest of its kind in Korea. The two parties signed the agreement in been built especially for road conditions in Korea and high-speed driving.
Culture September 2019 and are planning a 100 MWh pilot project by the end of 2021, to be run
in conjunction with KHNP’s existing new and renewable energy business. Hyundai and
2.5 Contributing to the Development KHNP expect that this agreement will create a virtuous cycle for eco-friendly resources, Automatic performance optimization for commercial EVs
of Local Communities from the production of EVs through to the processing of waste batteries, thus enabling Hyundai became the first company in the world to develop a technology that detects
both companies to become leaders in the new and renewable energy market. the load weight of a compact commercial EV in real time, optimizes power output to
Our System match the driving conditions, and provides precise information on the remaining travel
distance. This technology will first be applied in new compact commercial EVs which
Hyundai will launch in the near future. It enables power output to be reduced even if the
3 Sustainability Factbook load weight is small, which prevents the wheels from spinning. In addition, by precisely
forecasting the distance to empty, it informs the driver when to charge the vehicle.
With EVs now even being used as commercial vehicles, Hyundai is responding to global
Sustainability Magazine demand by developing a wide range of advanced technologies related to electrification.
1 IONIQ Electric
2 Hi-Charger, a ultra-quick EV charger
3 NEPTUNE, a hydrogen-only concept
for a heavy duty truck
4 Fuel cell-powered high-speed electric
1 2 3 4
bus for the police
034
1 Introduction
Launching Eco-friendly Models
2011 2013 2015 2016 2018 2019 2020
YF Sonata HEV Tucson FCEV LF Sonata PHEV IONIQ HEV/PHEV/EV (AE)

History
Our Commitment Mass-production system World’s best performance Development of next-generation eco-friendly cars
(Built a mass-production system for four eco-friendly vehicle models) (IONIQ was rated as the most energy efficient eco-friendly vehicle)
Experience Innovation Eco-friendly Vehicle Sales by Type in 2019
(Unit: 10,000 vehicles)
Launched 3 HEV models
Sales by Type Sales volume by model
throughout the Entire Value Chain Newly launched
HEV 10.7 IONIQ 5.4 / Grandeur 3.0 Jul. 2019
Sonata (DN8) Hybrid • Medium sedan
PHEV 1.0 IONIQ 0.8
- Eco-friendly Business Site • 2.0 gasoline + 38 kW motor
EV 6.1 Kona 4.5 / IONIQ 1.5 • Fuel efficiency of 20.1 km/L
2.3 Creating a Sustainable FCEV 0.5 Nexo 0.5
Supply Chain
Total 18.3
2.4 Building a Healthy Corporate Kona Hybrid • Small SUV
Culture • 1.6 gasoline + 32kW motor
Hyundai Motor Group’s Cumulative Global Sales of Eco-friendly Vehicles • Fuel efficiency of 19.3km/L
of Local Communities Sales volume No. of models (Unit: 10,000 vehicles)
17 Nov. 2019
• Semi-large sedan
Our System Grandeur Hybrid
• 2.4 gasoline + 38kW motor
(remodeled)
• Fuel efficiency of 16.2km/L
15 135.0
13
101.1 Launched 1 EV model
12
Newly launched
71.6 • The first compact
8 Dec. 2019
commercial EV in Korea
Porter EV
• 135 kW motor +
4 46.0 58.8 kWh battery
33.1 • Mileage of 210 km
Previously launched
4.4 IONIQ EV • Launched the 2019 facelift Kona EV • Ranked No.1 in Korea EV
model with increased motor sales in 2019
2011 2015 2016 2017 2018 2019
output and battery capacity,
thereby improving its mileage
by 42%
* Overseas sales are based on shipment from 2011 to 2018, and local sales since 2019
035
1 Introduction
Realizing the Hydrogen-based Society
Hyundai has been the first mover in creating a hydrogen society, ever since becoming the first company in the world to begin the mass-production of fuel cell electric vehicles (FCEVs) in 1)
Air Liquide, Nel Hydrogen,
2 Sustainable Performance 2013. We have also set out our “FCEV Vision 2030” that involves building a production system with an annual capacity of 500,000 FCEVs in Korea by 2030, while also actively establishing Nikola Motor Company, Shell,
and Toyota
FCEV alliances with both Korean and overseas companies. We will widen the use of hydrogen fuel cell technologies from the automotive sector into other industries. This will generate
economies of scale and thus improve cost competitiveness, which will in turn to lead to ripple effects, including job creation and the expansion of related industries.
Joint development of key hydrogen fuel cell technologies Hydrogen fuel cell power generation based on independent technology
Mid- to Long-term Goals Hyundai is working with Impact Coatings, a specialist in fine coating products, on the joint As part of our efforts to facilitate the hydrogen economy, Hyundai is working with Korea East-
development of key hydrogen fuel cell technologies. The two companies have signed an MOU West Power and Deokyang on a pilot project for a 1 MW eco-friendly hydrogen fuel cell power
Our Commitment regarding cooperation on the development of a hydrogen fuel cell and will actively collaborate generation system. Construction of this modular system is scheduled to begin in the second half
on innovation in hydrogen fuel cell technologies. In particular, we are commercializing physical of 2020. The system consists of several fuel cell modules for FCEVs installed within a container,
vapor deposition ceramic coating, a technology related to fuel cell bipolar plate coating owned making it easy to secure a space for installation, and also increasing capacity. Consisting of two
by Impact Coatings, and plan to apply it to mass-produced vehicles. 500 kW container modules, the system can produce around 8,000 MWh of electricity per year,
2.2 Pursuing Eco-friendly Value which would be sufficient for approximately 2,200 homes based on a typical monthly household
throughout the Entire Value Chain consumption of 300 kWh. Once the pilot project has been successfully completed, this new
Joint development of an eco-friendly railroad car fuel cell power generation facility, based on independent Korean technology, will be made
Hyundai has signed an MOU with Hyundai Rotem to develop a railroad car powered by hydrogen available to the local fuel cell power generation market. This will not only make hydrogen power
- Eco-friendly Business Site fuel cells. We will supply and support the hydrogen fuel cells and related technologies, while generation more efficient but will also promote the hydrogen industry in Korea.
Hyundai Rotem will be responsible for the production of the train, as well as the development
2.3 Creating a Sustainable and verification of the system interface between the hydrogen fuel cells and the vehicle. The two
Supply Chain companies have established an organization for technological collaboration and are working Strategic cooperation with Saudi Aramco to promote the use of hydrogen energy
in close cooperation on this project. A hydrogen fuel cell train is highly eco-friendly as it only Hyundai is strengthening its strategic cooperation with Saudi Aramco, a global energy and
discharges water and emits no pollutants. Furthermore, because it does not require power chemical company of Saudi Arabia, regarding the promotion of hydrogen energy and the
Culture
facilities such as trolley wires or substations, the building and power infrastructure costs are development of advanced carbon fiber materials. Hyundai is striving to expand the hydrogen
2.5 Contributing to the Development substantially reduced. charging infrastructure in Korea while also working to increase sales of FCEVs in Saudi
of Local Communities Arabia. We have therefore established a system of collaboration aimed at producing stronger
hydrogen tanks and reducing the weight of vehicles. Through this cooperation on expanding
Global cooperation in the production and storage of hydrogen the hydrogen infrastructure and developing advanced carbon fiber materials, Hyundai and
Our System
In order to significantly increase the economic feasibility of FCEVs, Hyundai is cooperating Saudi Aramco are together working towards their common goal of establishing a global
with overseas companies. We are aiming to cut the cost of hydrogen production through a hydrogen economy. They are also planning active collaboration to develop the technologies
technology and strategic investment agreement with H2Pro, an Israeli company which owns needed in the parts of the vehicles of the future.
3 Sustainability Factbook a technology that requires 20% less electric energy to produce hydrogen than standard water
electrolysis. In addition, we have signed a technology and strategic investment agreement with
GRZ, a Swiss company which owns a metal hydride-based compressor technology that has the Development of an electrified powertrain based on a hydrogen fuel cell system
Sustainability Magazine potential to considerably improve the safety and economic feasibility of hydrogen stations. By Hyundai is partnering with Cummins of the U.S., a company specializing in engines and
making these innovative investments, Hyundai is strengthening the economic feasibility and generators, to supply electrified powertrains based on hydrogen fuel cell systems to the
safety of the hydrogen infrastructure, and thus helping to popularize FCEVs. North American market, based on which, new powertrains are being developed by combining
Hyundai’s fuel cell systems with Cummins’ electric powertrain parts technologies. The new
powertrains will be sold to commercial vehicle companies in North America, including intra-
Global partnership to standardize charging for commercial FCEVs city bus, school bus and truck manufacturers. The two companies are also working together to
Hyundai is cooperating with five global companies1) on the international standardization of expand their sales network to include manufacturers of commercial vehicles and data center
large capacity hydrogen charging for commercial FCEVs. In order to efficiently store hydrogen construction companies in North America. In addition, Hyundai signed an MOU with Cummins
gas in a hydrogen tank with limited space, it is essential to standardize the high-pressure (700 to strengthen strategic cooperation on hydrogen fuel cells, in order to further improve our
bar) charging technologies, and to develop automobile and charger parts which can withstand competitive position in next-generation powertrains.
high-pressure charging at the standardized pressure. This cooperative agreement will help to
popularize commercial FCEVs and will increase the economic feasibility of hydrogen stations.
036
1 Introduction
Eco-friendly Business Site
Eco-friendly Processes
Our Commitment


- Eco-friendly Business Site Above. Concentrated RTO at the paint shop 1 of the Ulsan Plant Above. Dissolved Air Flotation installed at the paint shop 52 of the Ulsan Plant Replacement of CWS waste paint sludge collection facility Schematic diagram of the CWS waste paint storage
Below. Replacement of dust collectors at the paint shop of the Asan Plant Below. EVs installed at the industrial water treatment facility of the Asan Plant at the paint shop of the Asan Plant of the Ulsan Plant
Supply Chain Minimizing air pollutant Managing water resources Minimizing waste materials Managing hazardous chemical materials
In 2019, we installed paint shop evaporation equipment The Ulsan Plant has made significant changes to the The Ulsan Plant strengthened the separating out of In 2019, we replaced the sodium nitrite used at our
2.4 Building a Healthy Corporate and reduced the odor intensity to around 1/5, thereby previous system, in which sub wastewater treatment solid incinerated matter in 2019, and also improved transmission plant, as well as methanol, boron oxide,
Culture resolving civil complaints about the overpowering odor facilities of its paint shop 52 directly discharged wastewater the waste synthetic resin recycling rate from 5.6% to and sulfuric acid used at our material plant with
of paint from residents in the surrounding areas. We into the regional sewage treatment plant, so that an 20%, resulting in an overall recycling ratio of 93%. As unregulated materials, thereby reducing our year-on-
of Local Communities also reduced the amount of dust generation by 35 tons additional water treatment process takes place at such, it increased the recycling ratio while reducing year volume of using hazardous chemical materials by
from the previous year by making improvements to the comprehensive wastewater treatment facility 2. waste treatment costs. Its plan for 2020 is to reduce the 45 tons. We will actively continue replacing hazardous
the casting machine dust hoods at material plants and Improvements were also made to the dissolved-air volume of waste by around 400 tons by installing a CWS chemical materials with unregulated materials in
Our System installing more dust collectors. As we need to further flotation tanks to stabilize effluents and strengthen the waste paint natural dehydration-inducing facility. 2020. In addition, we will build a chemical materials
reduce the amount of dust generation by 50 tons by management of pollutant discharge concentration. monitoring system that notifies employees via short
2022 in order to comply with the enforcement of the Air In 2020, it plans to reduce its wastewater discharge message service (SMS) in the event of a leakage to
3 Sustainability Factbook Management Zone Act, in 2020 we will check the dust by 300 tons per day and pollutants by 2 tons per year prevent accidents, in our efforts to establish a safe
collector flow every quarter and make improvements by reusing wastewater and improving its wastewater hazardous chemical materials management system.
to less efficient dust collectors and aging facilities, and treatment plant.
Sustainability Magazine take any other necessary measures to strengthen our
emissions management. The Asan Plant is operating a zero liquid discharge system
in which the full quantity of wastewater originating from
the plant and residential areas is reused. It also installed
two evaporators (EVs), thereby reducing the returned
quantity and increasing the efficiency of the facility, in
order to improve the quality of wastewater and to stably
produce and supply industrial water.
• Increasing the efficiency of air pollution prevention facilities and • Reusing all wastewater originating from the plant and the nearby • Replacing CWS waste paint sludge collection facility at the paint • Replacing methylethylketone in the assembly glass installation
reducing air pollutant emissions by replacing paint shop pre- residential area by operating the zero liquid discharge system shop process
treatment dust collection facilities • Increasing faciality efficiency and ensuring capacity by installing two ‒ Reducing water content by at least 10% and the amount of waste • Reducing the amount of chemicals used by 220 tons from 2018
• Complying with the Clean Air Conservation Act and eliminating foul EVs; improving the quality of wastewater thanks to reduced returned by increasing the efficiency of waste paint sludge collection (28.5%)
odors by making improvements to the regenerative thermal oxidizer quantity; and stably producing and supplying industrial water • Increasing the recycling rate by reusing certain domestic wastes that
(RTO) at the paint shop previously were incinerated (planned for 2020)
037
1 Introduction
Taking Action on Climate Change by Business Sites
Hyundai’s efforts to reduce GHG emissions to counter climate change are manifested by investments for GHG reduction at its business sites and adoption of innovative technologies.
2 Sustainable Performance We are investing in renewable energy facilities such as photovoltaic power generation facilities, while developing and applying new technologies that can reduce energy consumption. We are
also making continuous efforts to better respond to the 2030 national GHG reduction roadmap of Korea and to build a carbon neutral operation system by 2050.
Materiality Analysis Strengthening GHG Emissions Management Ulsan Plant Jeonju Plant Asan Plant
(Including Scope 3) Hyundai’s Ulsan Plant is currently building a photovoltaic Hyundai’s Jeonju Plant is developing and applying Hyundai’s Asan Plant makes continuous efforts to
Mid- to Long-term Goals For efficient management of GHG emissions to counter power generation facility on a finished vehicle lot. This construction methods designed to minimize the minimize the operation of equipment during non-
climate change, it is becoming important to calculate project is the first case in Korea of a joint investment amount of energy used at its production facilities in production hours and to supply high-efficiency
Our Commitment Scope 3 emissions that are generated outside corporate with Korea Hydro & Nuclear Power, a public power order to reduce greenhouse gas emissions. In addition, facilities, aimed at reducing energy consumption,
boundaries. Hyundai received third-party verification generation company. It began to build the first-phase it is replacing low-efficiency facilities with high- with the ultimate goal of reducing greenhouse gas
of Scope 3 emissions that arise outside corporate 9 MW facility at its finished vehicle lot in the proving efficiency ones, and engaging in diverse activities, emissions. In 2019, it invested KRW 740 million in
boundaries, such as from logistics, use and disposal of ground in April 2019, and as of December 2019, 6 such as expanding the application of automation installing a heat pump at its paint shop and applied a
2.2 Pursuing Eco-friendly Value products sold, and employee commute. The increase MW of electricity are being produced. The remaining facilities connected with production, to minimize the power-saving operation program to the concentration
throughout the Entire Value Chain in development and sales of eco-friendly EVs and construction was completed in April 2020. We plan to consumption of standby energy. tank of the production line at the new engine plant,
FCEVs, such as the IONIQ Electric, Kona Electric, and set up power generation facilities with a total capacity further reducing greenhouse gas emissions. It
Nexo FCEV, is contributing to reducing GHG emissions of 27 MW at the Ulsan Plant, and all of the electricity In 2019, it replaced the hangers at its large vehicle also engages in various other activities to reduce
- Eco-friendly Business Site in the usage phase compared to internal combustion produced there will be transmitted and sold through washing site of the truck paint shop with detachable energy consumption, thus reducing greenhouse gas
engine vehicles. KEPCO (Korea Electric Power Corporation) electric power hangars, and optimized the setting temperature, emissions by 6,000 tons per year.
2.3 Creating a Sustainable systems. thereby reducing greenhouse gas emissions by 100
Supply Chain Hyundai is striving to calculate GHG emissions that tons. In addition, the air compressors that supply
occur outside corporate boundaries and to reduce the The Ulsan Plant installed an eco-friendly once-through compressed air throughout all the plants were
emissions, in its efforts to systematically manage GHG boiler system, which can respond quickly to changes replaced with high-efficiency equipment, reducing
Culture
emissions generated by its business activities. We are in the load of steam-using processes, at its Maeam greenhouse gas emissions by 234 tons. The circulating
2.5 Contributing to the Development continually taking part in carbon information disclosure engine plant, by replacing the fire tube boiler facility. pumps of the water treatment facilities at the bus
of Local Communities through the CDP (formerly the Carbon Disclosure As such, we eliminated unnecessary energy loss by paint shops were also replaced with high-efficiency
Project) and making other efforts to communicate with reducing the preheating loss that occurs at the time equipment, reducing greenhouse gas emissions by
stakeholders of climate change. of initial operation. We comply with the government’s 116 tons. Thanks to these efforts, we have reduced
Our System
environmental regulations and policies, and thus our CO2 emissions by a combined total of 1,039 tons.
reduced nitrogen oxide (NOx) emissions to less than
25 ppm, in our efforts to protect the atmospheric
3 Sustainability Factbook environment. In addition, we have built remote and
real-time monitoring systems so as to ensure the
efficient and stable management of the facilities.
Photovoltaic power generation facilities at the Ulsan Plant Air compressors at the Jeonju Plant Roof-type photovoltaic power generation facilities at the Asan Plant
ursuing Eco-friendly
P Area of Implementation 2019 Outcome & Mid- to Long-term Plan
Value throughout the Strengthening vehicles’ eco-friendliness • Kona EV won 2019 North American Utility Vehicle of the Year, and included in the WardsAuto
10 Best Engine List for 2019
• Operate over 26 eco-friendly vehicle models (by 2025)
• Sell over 1.03 million units of eco-friendly vehicles (by 2025)
Entire Value Chain Developing eco-friendly vehicles

• Launched new models: 3 HEVs and 1 EV (including Kona HEV, compact SUV, and Porter EV,
Hyundai’s 1st compact commercial model)
• Produce 500,000 units of FCEVs per year (by 2030)
• Develop and apply a new architecture for EVs (by 2024)
• Sales of eco-friendly vehicles in 2019: 183,000 vehicles
Processes throughout the automotive Launching eco-friendly models • Sales of FCEVs in 2019: 5,000 vehicles (4,194 in Korea, 711 overseas, based on shipment)
industry, from production to vehicle usage to Eco-friendly
Vehicles • Supported demonstration projects for fuel cell electric bus (major cities, including Busan • Install hydrogen and photovoltaic power generator in building the Global Business Center (GBC)
end-of-life, have a significant impact on the and Changwon) and taxi (Seoul) in Korea • Adopt a hydrogen fuel cell power plant (Tucson fuel cell)
environment. Hyundai is rapidly expanding • Signed an MOU with Saudi Aramco to collaborate on hydrogen energy (Jun. 2019) • Adopt a hydrogen fuel cell power generator at headquarters
its range of eco-friendly vehicles, helping to Realizing the hydrogen-based society • Signed an MOU with Cummins to jointly develop and commercialize electrified powertrain
based on a hydrogen fuel cell system for the North American market (Sep. 2019)
ensure that the usage phase of the entire • Made strategic investment in overseas innovative hydrogen companies to jointly develop
value chain is as environmentally friendly technologies (Oct. 2019)
as possible. In addition, we are reducing our
• Lowered the odor intensity of exhaust gas to around 1/5 and reduced dust generation • Reduce the amount of dust generation by 50 tons by 2022 in order to comply with
environmental impact and managing climate by 35 tons year-on-year the enforcement of the Air Management Zone Act (by 2022)
change risks through eco-friendly operations • Improved the wastewater discharge system at the Ulsan Plant, and operated the zero liquid • Reduce wastewater discharge by 300 tons per day and pollutants by 2 tons per year
at all our business sites, ranging from the discharge system at the Asan Plant at the Ulsan Plant (2020)
• Worked with more end-of-life vehicle recycling companies within the resource circulation • Continue to improve resource circulation capabilities for end-of-life vehicles in line with
procurement of raw materials and parts Eco-friendly processes
Eco-friendly network to improve the overall recycling rate the adoption of extended producer responsibility (EPR)1) program
through to assembly and end-of-life product Business • Establish an uninterruptible power system by linking an internal power plant with
disposal. Site combined heat and power generation
• Replace production lines with eco-friendly products in line with the increase in producing
eco-friendly vehicles
• Operate the corporate-level GHG Management Committee and strengthen activities to • Reduce the emissions of GHG in a phased manner and contribute to the global initiative aimed at
Taking action on climate change
reduce GHG emissions reducing GHG emissions
by business sites
• Reduce GHG emissions by 26% compared to 2016 (by 2030)
1)
A system whereby a producer or product user is required to recycle a certain amount of packaging waste material, with a payment exceeding the recycling costs to be levied on the producer or user if they fail to recycle properly
2019 Highlights
Hyundai’s ICE and electric systems named in the Winner of the Minister of Trade, Industry and Energy Selected for membership in the CDP “Honors Club”
2020 Wards 10 Best Engines & Propulsion Systems Award at the Korea Technology Awards for the second consecutive year
WardsAuto chose two Hyundai models to be recognized among their Recognized as one of the most prestigious technology awards in Korea, the In 2020, Hyundai won Carbon Management Sector Honors in the consumer
“2020 Wards 10 Best Engines & Propulsion Systems”. The two models Korea Technology Awards are presented to companies which contribute to the discretionary sector of the CDP (formerly the Carbon Disclosure Project) and
were the Smartstream G1.6 T-GDi engine of the Sonata Sensuous, and development of excellent new technologies and new products. The Elect City, also became a member of the Honors Club for the second straight year, proving
150 kW EV propulsion system of the Kona Electric. The fact that both which won the Minister of Trade, Industry and Energy Award, is a large electric that we are one of the leading companies in Korea combatting climate change.
an internal combustion engine (ICE) and an electric system of Hyundai bus for urban areas, developed by Hyundai over a period of eight years and In particular, we were recognized for our mid- to long-term environmental
were simultaneously chosen is of great significance. Established in 1924, launched in 2017. We developed the Elect City’s electric drive system and the management, including the development of eco-friendly vehicles such as
WardsAuto is an automobile specialist media company of the U.S. with controller for the battery system and were also able to increase the proportion FCEVs and EVs, the installation of high-efficiency greenhouse gas reduction
a history of nearly 100 years, and the 10 Best Engines awards which they of parts produced in Korea to 97%. Tests confirmed that the Elect City will facilities at every business site, our efforts to recycle waste energy and heat,
have given out since 1995 have high global awareness and prestige in the reduce CO2 emissions by around 125 tons per year compared to Hyundai’s and the extensive use of new and renewable energy. Hyundai also won the
automotive engine sector. CNG bus. Grand Prize in the CDP water resource management category.
Our Commitment 03
Creating a Sustainable Hyundai is building a sustainable supply chain which encompasses

our entire value chain. In support of this goal, we work in partnership
Supply Chain with our suppliers in order to establish a safe working environment and
a corporate culture that is managed in both socially and environmentally
responsible ways.
040
1 Introduction
Supporting Win-win Growth
Hyundai’s suppliers consist of tier 1 suppliers who supply parts directly to us, tier 2 suppliers who supply parts to the tier 1 suppliers, and general suppliers who supply general products.
Sustainability Management Hyundai’s Joint Growth Team spearheads the implementation of policies designed to achieve win-win cooperation and growth with all our suppliers, which also contributes to enhancing
Materiality Analysis the competitiveness of the Korean automotive parts industry. Furthermore, by building a long-term cooperation system, we are actively supporting our suppliers in various areas, ranging
from production technologies to R&D. In this way we are raising our own competitiveness together with that of our suppliers and the automotive industry of Korea.
Effects of Joint Growth through Long-term Cooperation
Our Commitment
Average trade period No. of suppliers by trade period
Experience Innovation (Unit: Company)

throughout the Entire Value Chain Difference 20 years + Suppliers with a trade period of more than 10 years 98 %
2.3 Creating a Sustainable Average life span of

small and medium-sized
12.3
Supply Chain years
manufacturers in Korea
- Supporting Win-win Growth
- Supply Chain
Risk Management
Average trade period with Hyundai Motor Company and/or Kia Motors 33 years 5 (2%) 34 (12%) 74 (26%) 99 (34%) 75 (26%)
2.4 Building a Healthy Corporate Under 10-20 years 20-30 years 30-40 years More than 40 years
10 years
Culture

of Local Communities Major performance of suppliers (2019 vs. 2001)
Our System
Financial improvement Corporate size growth Joint entry into overseas markets
Increase in sales
3.8 Corporate size growth
of large companies and
3.4 Expansion of joint entry into overseas markets
700
times medium-sized firms
times
Around companies
Increase in sales of suppliers

(sales of more than KRW 100 billion)
2.4 times
Total market capitalization
of listed suppliers
10.6 times
*
Target of analysis: Tier 1 parts suppliers (excluding Hyundai affiliates and non-specialist firms on which the company depends under 10%)
041
1 Introduction Hyundai’s strategy for joint growth with its suppliers consists of the following three major axes – first, cultivating suppliers’ global competitiveness; second, reinforcing the basis for sustainable
growth; and third, establishing a culture of joint growth. To cultivate our suppliers’ global competitiveness, we are carrying out a range of activities aimed at fostering quality competitiveness,
developing R&D capability, and enhancing productivity. To reinforce the basis for sustainable growth, we conduct activities that are intended to strengthen the suppliers’ foundation for
2 Sustainable Performance sustainable management, build infrastructure for growth, and expand global sales channels. To fully establish a culture of joint growth, we are operating diverse programs designed to
strengthen the collaborative network between Hyundai and our suppliers, and we are expanding support for tier 2 and 3 suppliers. Based on these three strategies, we will not only pursue joint
growth with our suppliers but also build a virtuous cycle based on strong partnerships.
Materiality Analysis Joint Growth Strategy and Programs
Mid- to Long-term Goals Cultivating Global Competitiveness Reinforcing the Basis for Sustainable Growth Establishing a Culture of Joint Growth
Our Commitment
• Foundation of Korea Automotive Parts • Cash payment for the purchase of • Operating a collaborative council
2.1 Smart Mobility-based Customer Industry Promotion products by tier 1 suppliers
Experience Innovation • 5-star system • Adjusting the price of raw materials • Operating a win-win portal
(product quality/technology/delivery) Strengthening
Fostering • Financial support programs Strengthening • Sharing information on raw material
2.2 Pursuing Eco-friendly Value the foundation
quality • Operation of a quality and technology • Making early payments for products the collaborative prices
throughout the Entire Value Chain for sustainable
competitiveness school on holidays network
management
2.3 Creating a Sustainable • Education on quality by work type • Joint purchases
Supply Chain • Improvements toward confidence in
durability
- Supporting Win-win Growth
- Supply Chain
Risk Management
• R&D Support Group for Suppliers • Consortium to develop human • Fostering product quality technologies
• Guest engineers resources of tier 2 and 3 suppliers
Culture • Exhibitions and seminars for • Seminars for future CEOs • Providing funds to tier 2 and 3 suppliers
Developing new technologies Building • Helping suppliers recruit outstanding Expanding • Operating a joint growth system for
2.5 Contributing to the Development R&D infrastructure talents support for tier tier 1 and 2 suppliers
• R&D Supplier Tech Day
of Local Communities capability for growth 2 and 3 suppliers
• Benchmarking advanced technology • Providing education to suppliers’ • Operating a win-win payment system
employees
• R&D Motor Show
Our System
• Protecting patents and technologies
• Industrial innovation campaign • Joint entry into overseas markets • Joint growth agreements
• Building smart plants • Helping suppliers increase their • Transparent Purchase Practice Center
Sustainability Magazine • Resident technology guidance overseas sales • Support for ethical management
Expanding Creating a
Enhancing • Resident management consulting • Support for export marketing of at suppliers
global sales tier 2 and 3 suppliers culture of
productivity • Awarding to best practice joint growth
channels joint growth
case
• Socially responsible management
• Welfare programs for suppliers
042
1 Introduction
Cultivating Global Competitiveness
The competitiveness of a finished car derives from the competitiveness of the suppliers’ parts used in its production. Based on the conviction that the quality and technical excellence of
2 Sustainable Performance our suppliers’ parts are directly linked to customer trust, we are systematically conducting a wide range of supportive activities aimed at enhancing our suppliers’ quality and technological
competitiveness and at improving their productivity, in order to produce finished cars that build customer trust and deliver an emotional experience.
Sustainability Management Fostering quality competitiveness Developing R&D capacity

• Foundation of Korea Automotive Parts Industry Promotion • R&D Support Group for Suppliers
In partnership with Kia Motors and Hyundai Mobis, Hyundai established the Foundation of Hyundai became the first Korean automobile company to establish an R&D Support Group
Korea Automotive Parts Industry Promotion in 2002. Since then we have invested around for Suppliers. The R&D Support Group shares technology between Hyundai and its suppliers,
Our Commitment KRW 6 billion every year in efforts to improve the quality, technology, and management of and pursues improvements in quality. This helps suppliers build their R&D capacity, enabling
2.1 Smart Mobility-based Customer our suppliers. Our Quality and Technology Volunteer Group and Supplier Support Group are them to produce high-quality products through independent improvements in technology.
Experience Innovation dispatched to provide our suppliers with consulting on matters related to quality, technology Many suppliers are currently part of the R&D Support Group, through which Hyundai and its
and management, thereby helping to improve the quality of suppliers’ parts and their ability suppliers are growing together.
2.2 Pursuing Eco-friendly Value to enhance and manage technologies.
throughout the Entire Value Chain • Guest engineers
• 5-star system (product quality/technology/delivery) Engineers from our suppliers are invited to work at Hyundai’s technical center for a certain period
We use a quantitative method to evaluate our suppliers’ quality competitiveness, through the guest engineer program. They take part in designing parts for new cars, and thus
Supply Chain
technological development capability, and delivery competitiveness, and provide incentives learn Hyundai’s technologies. Upon completion of the program, guest engineers return to their
- Supporting Win-win Growth to outstanding suppliers accordingly, as a means of helping suppliers to enhance their employers and go on to perform crucial roles in improving the supplier’s technological prowess.
- Supply Chain competitiveness in the areas of quality, technology, and delivery.
Risk Management • Sharing patented technology
• Quality and technology school Sharing technology with our suppliers is a vital part of improving and commercializing
2.4 Building a Healthy Corporate Hyundai has established a quality and technology school in order to train experts in quality product technologies. Hyundai therefore shares its patented technologies with suppliers
Culture and technology, thereby helping to improve our suppliers’ quality management systems. We free of charge, and executes technology transfers when necessary. We share a list of
also offer direct, targeted education to our suppliers in order to ensure consistency in the available patents with suppliers every month, suppliers then apply for a patent transfer, and
2.5 Contributing to the Development quality of our mass-produced parts and to improve quality. In addition, we have overhauled Hyundai in turn shares the patented technologies after reviewing the applications.
of Local Communities the processes for resolving important issues experienced by our suppliers in the field, and
we also update them on the improvements in durability developed at our technical centers.
Our System Enhancing productivity
Improving the product quality competitiveness of suppliers • Industrial innovation campaign
Number of Suppliers that
3 Sustainability Factbook A group comprised of large companies, tier 1 suppliers, and experts carries out an industrial
Benefitted from the Program to
innovation campaign by overhauling technologies, working environments, and production
Build Smart Plants
processes, in order to manage the quality of mass-produced parts.
Quality and technology school Trainings customized to suppliers (Unit: Company)
• Building smart plants
3 years from 2019
Around 4,500 people completed 24 customized
Hyundai helps its suppliers prevent quality defects in their products by introducing an initial,
intermediate, and final product inspection system, a lot tracking and management system, and 700
the program to foster quality and training courses for different a foolproof system to their parts manufacturing plants. We also support the development of Plan to expand more
technology experts in 2019 business types of suppliers solutions, such as the digitalization of manufacturing process data. We have supported some than 1.6 times for tier
2 and tier 3 suppliers
450 companies since 2016, and will increase this number to 700 starting in 2019, so that our tier
2 and tier 3 suppliers can enhance their competitiveness by building smart plants. Hyundai will
also provide consulting to assist our suppliers with setting up a smart factory and the necessary 3 years since 2016
facility investments, which will enable them to digitalize their data processing, reduce lead
times and failure rates, lower disposal costs, improve rates of delivery, and increase their sales 450
revenues, thereby improving their overall business efficiency.
043
1 Introduction
Reinforcing the Basis for Sustainable Growth
To reinforce the basis for the sustainable growth of suppliers, Hyundai offers them a fund support program, professional technology training, and a program designed to expand their global
2 Sustainable Performance sales channels. We are committed to strengthening the foundation for our suppliers’ stable, continuous growth, and will pursue win-win cooperation so that our suppliers can develop into
global small giants.
Sustainability Management Strengthening the foundation for sustainable management Building infrastructure for growth
• Cash payment for the purchase of products • Consortium to develop human resources
Since May 2006, Hyundai has paid its small and medium-sized suppliers in cash for the Since 2004, Hyundai has been part of a consortium to develop human resources in
entire price of their supply of subcontracted parts and general materials. For parts that are partnership with the Ministry of Employment and Labor as well as our suppliers. We
Our Commitment for domestic use, we make weekly cash payments to small and medium-sized suppliers with provide personnel, facilities and financial support for the education of our suppliers, free
2.1 Smart Mobility-based Customer sales of under KRW 500 billion. For large companies and medium-sized suppliers with sales of charge, and we also offer professional technical training and cyber training courses.
Experience Innovation of more than KRW 500 billion, we make weekly payments using electronic bills. For export
parts, we make monthly cash payments.
2.2 Pursuing Eco-friendly Value Professional technical training
throughout the Entire Value Chain Consortium to
Parts for domestic use Parts for exports Personnel, facilities and financial support
Develop Human Resources
2.3 Creating a Sustainable Cyber training
Small and medium-sized suppliers Large companies and SMEs
Supply Chain
(sales of under KRW 500 billion) Monthly cash payment
- Supporting Win-win Growth Weekly cash payment
- Supply Chain Large companies and medium-sized suppliers
Risk Management (sales of more than KRW 500 billion) Expanding global sales channels
Weekly payments using electronic bills
2.4 Building a Healthy Corporate • Joint entry into overseas markets
Culture As Hyundai expands its overseas production volume, we help to increase the exports of
• Adjusting the price of raw materials not only our tier 1 suppliers, with whom we have a direct business relationship, but also
2.5 Contributing to the Development The prices of raw materials fluctuate frequently and sometimes substantially depending the exports of tier 2 and tier 3 suppliers. Partnerships that have been developed in Korea
of Local Communities on a number of factors, including global economic conditions, and price increases can are now expanding overseas, backed up by a range of programs so that Hyundai’s global
make it difficult for suppliers to procure materials. In order to prevent this, Hyundai absorbs operations can offer greater opportunities to our suppliers.
Our System the burden of price increases in the raw materials for its suppliers. More specifically, we
adjust the prices of such raw materials as steel sheets, noble metals, aluminum, copper, • Ensure stable sales volume
• Provide opportunities to find local sales channels
plastics, and lead by referring to the grounds for adjustment for each criterion, including the
• Help suppliers establish viable operations in local markets
3 Sustainability Factbook subcontract, price-volume agreement, and market price change-related adjustment.
Hyundai Motor Company Suppliers
• Early payments for products on holidays
When more funds are required ahead of national holidays, such as Lunar New Year and • Supply high-quality parts on time
Chuseok, we assist suppliers by paying for products earlier. This program has been in place • Contribute to the early stabilization of overseas plants
for tier 1 suppliers, but we encourage tier 1 suppliers to subsequently support tier 2 and tier
3 suppliers, and the results of those checks are used to evaluate tier 1 suppliers. • Support for export marketing of tier 2 and tier 3 suppliers
Hyundai actively supports export marketing of its tier 2 and tier 3 suppliers. We support
Amount of Early Payments for Products on Holidays their participation in automotive parts exhibitions held in Korea and overseas, and operate
(Unit: KRW billion) a program that matches suppliers with overseas buyers. We will support 10 companies
every year for the next three years to 2021, a total of 300 companies. In Korea, we provide
Lunar New Year in 2019 471.3
financial support to suppliers on fees related to setting up booths at the Korea Automotive
Chuseok in 2019 555.4 Industry Exhibition (KOAA SHOW), and organize one-on-one meetings with overseas
buyers. For overseas marketing, we provide support to cover various expenses, including
Lunar New Year in 2020 382.8 participation fees for exhibitions and related costs such as airfare and accommodation.
044
1 Introduction
Establishing a Culture of Joint Growth
Hyundai is strengthening its collaborative networks to facilitate smooth communication with its suppliers, and supporting various programs to support tier 2 and 3 suppliers, in addition to tier 1 1)
Under this cooperation program,
2 Sustainable Performance suppliers. We are striving to build a culture of joint growth in a bid to promote transparent and fair trade by signing joint growth agreements with our suppliers. large companies share their
respective infrastructure, win-win
programs, and know-how with their
suppliers, as well as with companies
Strengthening the collaborative network with which they do not usually
Materiality Analysis do business, such as SMEs, small
• Chosen by the Ministry of SMEs to sign an MOU for the JaSang Company program businesses and the self-employed.
Quality and Technology Volunteer Group Supplier Support Group
Mid- to Long-term Goals In December 2019, Hyundai Motor Company and Kia Motors signed an MOU to participate in It is an abbreviation of “Ja”baljeok
the JaSang Company1) program with the Ministry of SMEs and Startups and the Korea Auto (voluntary) “Sang”saenghyupreok
• Composition Specialists by work type • Composition Consultants with professional (win-win cooperation).
Our Commitment Industries Coop. Association. Based on this MOU, Hyundai will help internal combustion
experience in the automobile
engine (powertrain) parts companies develop future competitiveness; newly adopt new • Period ork at the suppliers for 5-7
W
2.1 Smart Mobility-based Customer industry as senior executives
types of future cars as part of a project aimed at helping suppliers to build win-win smart months to provide guidance
Experience Innovation plants; dispatch future car experts for afterschool courses at three national vocational high free of charge • Period Work at the suppliers for 3-12
schools; and support technological cooperation by connecting suppliers with startups. In months to provide consultation
• Area of I njection, rubber, painting,
2.2 Pursuing Eco-friendly Value regarding overall management
this way, Hyundai will do its utmost to fully establish a culture of joint growth. guidance electric and electronic, cutting,
free of charge
heat treatment, press, welding,
metal plating, cast iron casting, • Area of R&D, production, production
Details of the JaSang Company Program aluminum casting, forging, etc. consultation technology, quality, business
Supply Chain
management, overseas
- Supporting Win-win Growth marketing, planning, etc.
• Support the efforts of internal combustion engine (powertrain) parts companies to secure future
- Supply Chain competitiveness
Risk Management ‒ Provide support for supplier investment optimization and business conversion
4 action agendas for
• Create new types of future cars as part of the support project to build a win-win smart plant Creating a culture of joint growth subcontracts
2.4 Building a Healthy Corporate ‒ Provide support for the construction of smart plants to companies that produce parts for future cars
Culture and those transforming their businesses into future cars • Joint growth agreements
• Action agenda for the advisable
2.5 Contributing to the Development • Create a specialized afterschool course on future cars at three national vocational high schools Hyundai has signed annual “joint growth agreements” with its suppliers since 2008, as part conclusion of contracts
of Local Communities ‒ Dispatch lecturers to three national and public schools in North Jeolla Province, Busan, and Gumi of our commitment to joint growth. In 2019, we signed the 11th agreement which includes • Action agenda for new supplier
• Support technological cooperation by connecting suppliers with startups such areas as price adjustments in relation to the cost of raw materials, financial support registration and management
programs, executing four action agendas for subcontracts, and increasing support for tier 2 • Action agenda for the
Our System and tier 3 suppliers. management of an internal
subcontract deliberation
Operating a collaborative council by tier 1 suppliers • Transparent Purchase Practice Center committee
3 Sustainability Factbook The collaborative council by tier 1 suppliers is a dialogue channel for Hyundai to share its Providing suppliers guidelines on ethical conduct is important for both Hyundai and our • Action agenda for advisable
policies and other information with its suppliers, to resolve any difficulties experienced by suppliers, so that we can work together to produce finished cars in a fair and transparent document issuance and
preservation
tier 2 and tier 3 suppliers, and to collate any requests that may arise during the production way. We have therefore set up the Transparent Purchase Practice Center on our corporate
Sustainability Magazine process. These councils enable us to share our policies on purchasing and quality with our website. The supplier suggestion box for transparent and ethical practices enables Hyundai
Transparent and ethical practice
suppliers, and to establish a culture of fair and transparent trade. to listen to their difficulties, and collect opinions on improving systems. In addition, there is
suggestion box
a voice box for tier 2 and tier 3 suppliers as part of our complete commitment to fair trade
and transparency throughout the supply chain. • Purpose of operating the
Expanding support for tier 2 and tier 3 suppliers suggestion box and report box
• Awarding prizes to the best practice joint growth case • How to make a suggestion and
• Fostering product quality technologies Since 2009, Hyundai has evaluated the efforts made by tier 1 and tier 2 suppliers to generate report (internet/ARS)
Maintaining and improving the quality and technology of the tier 2 and tier 3 suppliers that joint growth, including better payment conditions, and gives awards to suppliers who have • Operation method (maintain
supply tier 1 suppliers is another key factor in improving the quality of finished Hyundai shown outstanding win-win efforts. We have awarded prizes to a total of 34 suppliers for anonymity and confidentiality)
cars. Hyundai therefore dispatches our specialists to suppliers, free of charge, to share our their excellence in joint growth initiatives as of 2019. • Checking the outcome of
expertise on quality, technology and productivity in automobiles, and to help suppliers measures
increase their global competitiveness.
045
1 Introduction
Supply Chain Risk Management
Establishing a Sustainable Supply Chain

Supply chain management policy
Hyundai has focused on establishing a fair and transparent trade environment and Classification Number of companies Amount of purchase (KRW trillion)
1)
Management and assessment cycle
strengthening its suppliers’ competitiveness as its key purchasing policies. We observe 2)
xporting a knock-down (KD)
E
Our Commitment Total part suppliers 1,880 53.3
fair and transparent procurement ethics by observing the Employee Charter and the Code kit containing the parts needed
of Ethics of the Procurement Division, and present the relevant guidelines through the Korea 7803) 29.4 to assemble a product in the
2.1 Smart Mobility-based Customer Tier 1
Overseas 1,100 22.9 respective local market
Experience Innovation Suppliers’ Code of Conduct. It consists of matters that need to be executed for sustainable
3)
management, such as ethical management, human rights and labor issues, health and Critical suppliers 104 37.3 Including some 400 import
companies
2.2 Pursuing Eco-friendly Value safety, legitimate raw materials, and the management system. In addition, we support Tier 2 Critical suppliers 13 - 4)
throughout the Entire Value Chain Assessment of the management
collaboration between startup suppliers and tier 1 suppliers and operate a 5-star win-win
status, working conditions, human
cooperation system designed to strengthen joint growth with tier 2 and below suppliers. rights, corporate ethics, the
Supply Chain Supply chain assessment environment, and health & safety
Supply Chain Management System 5)
Tier 1 part suppliers in Korea
Hyundai evaluates and monitors both new and existing suppliers with regard to quality,
- Supporting Win-win Growth (excluding import companies)
Priority Quality Delivery Technology Win-win delivery, technology, safety management, eco-friendly parts, and win-win cooperation. We 6)
- Supply Chain All tier 1 critical suppliers
encourage suppliers to improve in these areas by reflecting the results of annual supply
Risk Management Quality Operational failures
Payment conditions, chain assessment in our procurement policy. In the event of code violations, Hyundai’s
management system, of production lines,
Managed Basic capability, fairness of contracts, internal council imposes penalties on the supplier, thereby increasing awareness. In terms of
incoming defects delivery rate for
2.4 Building a Healthy Corporate items execution capability, efforts to observe laws,
(1 Year1))
ratio, claim cost after-sales services,
future capability support for win-win
safety management, if suppliers fail to satisfy the assessment criteria, we impose corrective
Culture reimbursement ratio, delivery rate for
cooperation measures and require suppliers to obtain certifications from professional organizations, Supply Chain Assessment
quality management knockdown (KD)2)parts Process
2.5 Contributing to the Development such as ISO 45001. In particular, starting from this year, we will strengthen the monitoring
of Local Communities Safety Eco-friendly parts
Ethics and of our supply chain ESG risk based on the “self-diagnosis of supply chain ESG” and on-site
Establish and declare the
human rights supplier inspections as part of our supply chain ESG policy, and derive measures that will Supply Chain Code of Conduct
Transparent enhance suppliers’ ESG levels. We advised improvement measures to high-risk suppliers,
Our System Preventing harmful
management such as those that violated transparency/ethical rules, engaged in collusion, and failed to
substances, providing
ESG Safety management manual, (Anti-solicitation/ meet safety standards, in accordance with supplier restriction regulations. All of the high- Build and implement a supply chain
chemical information
perspective safety management organization/personnel, bribery prohibition),
(IMDS), establishing an risk critical suppliers completed undertaking corrective measures. risk management system
3 Sustainability Factbook (Frequently1)) safety management training, observance of trade
internal eco-friendly
safety accidents, risk management contracts, labor/human
system, environmental Assessment Results and Measures Taken
rights/prohibition of
management Check and monitor
discrimination
Number of Evaluation supply chain ESG risk
Sustainability Magazine Classification Index
companies ratio
Supply chain ESG risk assessment
Tier 1 suppliers from among those subject to
Supply chain 3785) 20.1%
sustainability risk evaluation
risk Help suppliers improve
High-risk tier 1 suppliers among those subject to
Supply chain status management4)
sustainability risk evaluation
53 14.0% their ESG management
When defining critical suppliers, Hyundai comprehensively considers the characteristics of Critical suppliers from among those subject to
1046) 100.0%
parts that are supplied by our suppliers in terms of their potential replacement. Critical suppliers Monitoring of supply chain monitoring
Supply chain
are those which supply key parts (module, powertrain, and electronics) in consideration of the critical suppliers High-risk critical suppliers from among those subject
32 30.8% risk management
characteristics of a finished car manufacturer. As of 2019, around 100 of Hyundai’s 1,880 suppliers to supply chain monitoring
fell within the critical supplier category. We have even taken the further step of managing tier 2 Corrective High-risk suppliers that have completed corrective
32 100.0% Public disclosure of
suppliers (non-tier 1) in consideration of the volume of trade in cases where there are high barriers measures measures
implementation status
to becoming suppliers due to the characteristics and technology of specific parts.
Creating a Area of Implementation 2019 Outcome & Mid- to Long-term Plan
Sustainable Cultivating global competitiveness

• Help suppliers build smart plants
‒ Supported a cumulative total of around 450 companies from 2016 through 2018
• Foster quality competitiveness, enhance productivity, and develop R&D capability
• Plan to support 700 companies to help tier 2 and 3 suppliers strengthen their competitiveness
Supply Chain Reinforcing the basis for

‒ Supported 270 companies (2019)
• Help suppliers recruit talents
(2019–2021)
• Strengthen foundation for sustainable management, expand global sales channels,
Supporting
‒ Expanded into the Hyundai Motor Group Suppliers Job Fair, and held 5 job fairs in different regions and build infrastructure for growth
Hyundai supports joint growth throughout its Win-win sustainable growth
‒ Participated by 264 companies of Hyundai’s suppliers, as well as affiliates and their suppliers
Growth
supply chain, including by helping suppliers • Support suppliers’ export marketing • Create a culture of joint growth, expand supports for tier 2 and 3 suppliers, and strengthen
with recruitment, building smart plants, and Establishing a culture of joint growth
‒ Supported around 100 companies (2019) the collaborative network
• Plan to support 300 companies to help tier 2 and 3 suppliers increase their overseas sales
marketing. We also undertake environment,
(2019–2021)
social, and governance (ESG) assessment and
• Build suppliers’ ESG risk management system • Conduct ESG supply chain monitoring on a regular basis (survey/inspection)
monitoring to assess and manage ESG risks
‒ Conduct external assessment on suppliers’ ESG risk (since 2019) ‒ Conduct a written assessment of all suppliers (by 2022)
which could potentially arise at our suppliers, ‒ Conduct monitoring (survey) on suppliers’ ESG risk (since 2019, 20.1%) ‒ Establish risk management index and build database
and standardize their management systems ‒ Establish an integrated strategy that reflects ESG evaluation
‒ Support supply chain ESG improvements
through system certification.
• Strengthen win-win cooperation • Strengthen win-win growth by improving win-win cooperation between tier 1 and
‒ Operate the 5-star system for win-win cooperation (since 2019) tier 2 suppliers
Supply ‒ Help suppliers make improvement to their win-win relationships through win-win cooperation
Chain Risk Establishing a sustainable supply chain activities of tier 1 suppliers and sensory level survey of tier 2 suppliers
Management
• Health & safety, environmental management • Strengthen systems for health & safety management and environmental management
‒ Provide on-site support for suppliers’ health & safety management (since 2017), and ‒ Health & safety management: 100% acquisition of ISO 45001 certification (by 2022)
share health & safety management guidelines and major cases ‒ Environmental management: 100% acquisition of ISO 14001 certification (by 2022)
‒ Ban suppliers from using hazardous materials in their production process and products (since 2017)
‒ Register data whether hazardous substances are contained in all parts to the IMDS1)
‒ Tier 1 suppliers with health & safety management system certification, such as OHSAS 18001:
98% (2017), 99% (2018), 100% (2019)
‒ Tier 1 suppliers with ISO 14001 certification: 87% (2017), 91% (2018), 92% (2019)
1)
International Material Data System: Automobile industry’s material data system
2019 Highlights
Win-win cooperation with tier 2 and 3 suppliers Hosted the 8th Suppliers Job Fair
From 2016 to 2018, Hyundai supported the construction of smart factories by 450 of our tier 2 and 3 suppliers in order Hyundai launched its Suppliers Job Fair in 2012 to help our suppliers recruit outstanding personnel. In 2019, the
to help them improve their productivity. We also plan to help 700 tier 2 and 3 suppliers create their smart factories eighth job fair was rebranded as the Hyundai Motor Group Suppliers Job Fair, and it was also expanded to increase
over a three-year period beginning in 2019. In addition, we are supporting their export marketing exhibitions, helping support for suppliers’ recruitment campaigns. The fair was held separately in five regions across Korea, including
them increase their overseas sales. We will support 100 companies each year between 2019 and 2021, for a total of Seoul, Gwangju, Daegu, Changwon, and Ulsan, and attracted the participation of 264 companies, including Hyundai’s
300 companies. suppliers as well as affiliates and their suppliers.
Our Commitment 04
Building a Healthy Hyundai strives to ensure the right balance between work and personal lives
by creating a flexible work environment and utilizing efficient work processes.
Corporate Culture In addition, we continually upgrade the professional skills of our employees and
raise employee awareness about sustainability. This positive organizational culture
has enabled Hyundai to build a fully sustainable system of operations.
048
1 Introduction
Building a Flexible Workforce
Smart Organizational Culture

Reform of the employee position system Expansion of the flexible working hour system to include plants
Hyundai has integrated its job positions, including by reducing the number of job titles in order The selective working hour system (flextime) has been fully expanded to include office 1)
Proactive change management
to make its organizational culture more horizontal and ensure that employees are rewarded workers R&D staff at the plants. Our selective working hour system designates 10 am to process in place since 2017 to
Our Commitment according to their skills. This will increase opportunities for outstanding personnel, and enable 4 pm as the “concentrated work hours” during which employees must be at work, and enable on-site leaders to manage
changes in the organizational
2.1 Smart Mobility-based Customer the company and its employees to grow together. In case of executives, the executive director enables them to choose when to come to and leave work during their remaining work hours. culture
Experience Innovation position and positions lower than that have been integrated into one, resulting in a reduction This system was first applied to headquarters and managerial positions in 2019, and was
from the previous six steps to four steps – president, vice president, senior executive director, subsequently expanded to include employees working at plants.
2.2 Pursuing Eco-friendly Value and executive director. As regards managerial positions, the previous post/long service-
throughout the Entire Value Chain centered six steps have been reduced to four role-based steps. Thus, Grade 5/grade 4
associates have been integrated into G1, assistant managers into G2, managers into G3, and Innovating the organizational culture
deputy general managers and general managers into G4. Meanwhile, titles have been further In line with our goal of successfully implementing the “2025 Strategy”, we have built a
Supply Chain
simplified into two steps: G1-G2 denotes “manager” and G3-G4 “lead manager”. strategy-led business management system and are striving to innovate our organizational
2.4 Building a Healthy Corporate culture. We have adopted a data-based decision-making system, a performance management
Culture system, work innovation processes, and next-generation enterprise resource planning
Adoption of an agile R&D organization (ERP), and we are also building a flexible organizational structure and a communication- and
- Building a Flexible Workforce
We are increasing our R&D investments in a bid to respond promptly to the market environment collaboration-centered culture.
- Attracting and Nurturing and to enhance quality and profitability. In addition, we have substantially restructured our
Talents R&D Division, which comprises 10,000 employees, with the goal of enhancing the efficiency of Hyundai is fostering a creative and agile organizational culture through the Culture Change
- Protecting Employee Rights organizational operations. We have also simplified its structure from the previous parallel structure Program (CCP)1), a platform for the innovation of organizational culture. In particular, we
consisting of five areas – project management, design, electronics, vehicle performance, and are focusing on establishing a culture of horizontal communications, further enhancing
2.5 Contributing to the Development powertrain – to the current structure consisting of integrated product development, systems, trust within the organization, and promoting creativity through an active, autonomous work
of Local Communities and PM. This is an architecture-based system organization, and its principal strength is that each environment. We also operate a wide range of programs to ensure that our employees
department can organically collaborate with the others. maintain a healthy work-life balance.
Our System
Position System for Executives Position System for Staff
Before After Before After (Position/Title)

President President General Manager

G4
Executive Vice President Executive Vice President Deputy General Manager Senior Manager
Senior Vice President Senior Vice President Manager G3
Vice President Assistant Manager G2

Vice President Manager
Director Associate G1
049
1 Introduction
Building a Foundation for Change and Innovating the Way of Work
In order to innovate its organizational culture, Hyundai is establishing a foundation for change through a top-down approach, while innovating its way of working and pursuing other
2 Sustainable Performance practical changes through a bottom-up approach based on employee communication.
Top leaders driving change forward R&D Idea Festival
Materiality Analysis A top-down approach to change means that the leaders at the highest levels at Hyundai Hyundai has been hosting the annual R&D Idea Festival since 2010 in an effort to create a 1)
Top management oversees this
are determined to introduce effective and comprehensive change, and to lead by example. voluntary and vibrant R&D atmosphere and to fully establish an R&D culture where challenges forum, at which leaders share
Mid- to Long-term Goals Directors and higher-level leaders regularly meet in person at the Leaders Forum1) and the are met through mutual cooperation. Researchers’ unique ideas for future vehicles are turned information and opinions on the
future direction of the company,
Roundtable Meeting (RTM)2), which are decision-making and information-sharing platforms into reality and then demonstrated at the R&D Idea Festival, whose scope was expanded and discuss other major agenda
Our Commitment at Hyundai. Issues discussed include breaking down silos between departments; establishing to include the participation of employees at the Hyundai Motor Technology & Engineering items as required
a culture of collaboration; changing the culture around meetings; and reaching a consensus Center (China) in 2019. Going forward, it will be carried out as a program designed to discover 2)
The previous meeting culture has
on a customer-centered flexible organizational culture. In addition, the CCP, our corporate- new ideas for mobility solutions, going beyond automobiles. been upgraded to ensure that
wide platform for implementing autonomous change at each unit, has enabled employees decision-makers meet quickly
to cause changes to be made, and then, to feel the direct impact of those changes, with our The 2019 festival was held on the theme of “Lifetime partner in automobiles and beyond”, and in-person to ensure rapid and
efficient decision-making
throughout the Entire Value Chain leaders taking a central role. reflecting Hyundai’s future vision, and researchers suggested ideas in three categories –
Beyond People, Beyond the Car, Beyond Life – and produced mockups of their ideas for the
2.3 Creating a Sustainable contest. Ideas were received on a total of four occasions from April to July 2019, and eight
Supply Chain Innovating the way of working based on communication teams from the Namyang Technology Research Center and three teams from the Hyundai
A bottom-up approach to change at Hyundai means engaging the active participation of Motor Technology & Engineering Center (China) were selected for the finals. They transformed
Culture its employees. It also means that we must listen to and then reflect their opinions, which their idea into an actual object over a period of around three to five months, and the honor of
is why we have adopted the two-way communication process, with employees strongly the grand prize was presented to the “Because I Wanted to Avoid the Sun” Team that came up
- Building a Flexible Workforce encouraged to share their opinions. Leading examples of this are the offline “Town Hall with the idea of tracking the Sun’s location and automatically blocking sunlight.
- Attracting and Nurturing Meeting” and the online “Hyundai Forest” anonymous communication channel.
Talents
- Protecting Employee Rights At the Town Hall Meeting, top management at Hyundai communicate directly with employees Digital Vehicle Development Contest
about the company’s direction, and any changes in policy or systems. To ensure two-way Hyundai held the “Digital Vehicle Development Contest” from June 24 to 28 in 2019, with
2.5 Contributing to the Development communication, there is also an on-site Q&A session to answer any questions. The Hyundai the goal of strengthening our comprehensive engineering capability by assessing the ability
of Local Communities Forest enables anonymous opinions about the company to be put forward, with the company to use digital vehicle development tools and identifying outstanding cases. A total of 708
committing to providing responses to these suggestions. This communication channel attracts participants, including 102 from overseas research institutes and 132 from 51 suppliers,
participation from around 20% of employees at headquarters. In addition, we conduct a survey took part in the contest that consisted of the following six categories – planning, design,
Our System twice a year to monitor how employees feel about the changes at Hyundai. This system of two- interpretation, testing, and engineering efficiency tool.
way communication continues to increase employees’ trust in the company, and is encouraging
their participation in corporate changes.
Major Improvement Case
Transforming a Hyundai has radically transformed its reporting culture, including the
reporting culture – abolition of approval boards and handwritten approvals. This has proved
to our employees that the reporting culture will change, backed up by
speedy reporting a company-wide announcement on “Speedy reporting that dispenses
1 Town Hall Meeting (Oct. 2019)
that dispenses with formality – no restrictions on report formats as long as efficiency 2 The “Because I Wanted to Avoid the
Sun” Team won the Grand Prize at the
with formality and effectiveness are enhanced”. This transformation, with top 2019 R&D Idea Festival for its sunblock
management leading by example, has met with a very positive reaction system which tracks the Sun’s location
from employees. and automatically blocks out sunlight
1 2
without using a sun visor
050
1 Introduction
Employee-friendly Corporate Culture
2 Sustainable Performance Organizational culture survey Retirement pension

We conducted an organizational culture survey in September 2019 to identify the level Hyundai has put into place a retirement pension system to help our employees fund and
1)
Business, people, work, leadership,
of the corporate culture by organizational unit. The assessment consisted of 78 questions, plan for their lives after retirement. Hyundai uses third-party administration services as a organizational effectiveness, HR
system, and infrastructure
Sustainability Management divided into seven categories1), and was participated by about 74.1% of general and research way to protect retirement pensions, and we also provide education for pension subscribers
Materiality Analysis staff. We will continue to carry out assessments to further improve our organizational about retirement planning, including all necessary information on personal pension
culture. products, thereby helping our employees build a foundation to enjoy life after retirement.
Our Commitment Employee welfare Protecting employee health during the COVID-19 pandemic
Hyundai offers various welfare programs to improve the quality of life for our staff. We Hyundai has set up a Group-level “COVID-19 Comprehensive Situation Room” in order
run the “Child Happiness Travel” program to support childbirth and child-rearing, and an to protect the health of its employees. We conduct one-on-one health checks on our
overseas travel program for long-serving employees. Other welfare programs, including employees and visitors to see if they have a fever, disinfect all our business sites on a
2.2 Pursuing Eco-friendly Value on-site childcare centers at headquarters and other business sites, are also enabling our daily basis, make hand sanitizers and thermometers available to anyone on-site, and
throughout the Entire Value Chain employees to strike the right balance between their work and personal lives. operate thermal imaging cameras. We also require all pregnant employees and those with
underlying illnesses to work from home. Moreover, we have taken the step of allowing staff
2.3 Creating a Sustainable based at our headquarters or in the Seoul and Gyeonggi provinces to work from home if that
Supply Chain is their preference.
Culture

- Attracting and Nurturing
Talents Categories for the Organizational Culture Survey Employee welfare
- Protecting Employee Rights
Flexible work system • Employees can choose when they come to and leave work, other than regular working hours
2.5 Contributing to the Development Work Business People (10 am to 4 pm) based on the condition that the weekly average of 40 hours is met
Telecommuting • Each business site allowed staff to work from home on their own, due to the spread of COVID-19,
in order to ensure employee safety (from Feb. 27 to Mar. 21, in case of the headquarters)
Our System Organizational
HR system Leadership Infrastructure On-site childcare center • Operating on-site childcare centers since 2013 for married female employees and single-parent households
effectiveness
• Located at 5 locations – headquarters, Ulsan Plant, Asan Plant, Jeonju Plant, and Namyang Technology
Research Center
Maternity leave • 90 days of maternity leave for single births and 120 days for multiple births (10 days for male employees)
Organizational Culture Survey Results Parental leave • Up to two years for each child aged 8 years or younger, or in second grade of elementary school or below,
Sustainability Magazine regardless of the gender of employees; and employee benefits that above legal requirements
(shortened working hours are available for childcare by combining with childcare leave)
Employee travel support programs • Overseas traveling for long-serving employees: Cover traveling expenses for long- serving employees
64.0
and their families
58.7 points 61.7 points points

• Child Happiness Travel: Provide hotel lodging to employees for a certain period before and after pregnancy
Gymnasium • Offer a customized exercise prescription for employees, swimming lesson program, etc.
2017 2018 2019 • Located at headquarters and major business sites to allow employees and their families to experience
greater convenience
051
1 Introduction
Attracting and Nurturing Talents
Recruiting Talents
Year-round recruitment system for new employee hires Employee recommendation system
Hyundai is changing its recruitment systems in order to respond effectively in the Industry The importance of securing talents is rising sharply in the constantly evolving business
4.0 era. After a successful trial run in 2019, Hyundai fully implemented a flexible year-round environment. However, there are limitations to attracting outstanding talents when using
Our Commitment recruitment system. The new system is aimed at recruiting the right people for specific only restricted employment channels that target unspecified individuals. Hyundai therefore
2.1 Smart Mobility-based Customer jobs, with worksites using their expertise and knowledge of real-life job requirements to plans to strengthen the timely selection of a suitable talent for each job by introducing
Experience Innovation play a central role in developing the evaluation questions used in screening and interviews, a recommendation system that actively leverages employees’ personnel networks. This
and in the selection of outstanding personnel. We provide detailed information on job will enable us to recruit experts capable of securing key technologies and executing new
2.2 Pursuing Eco-friendly Value requirements for each individual recruitment drive, which has improved the match between businesses.
throughout the Entire Value Chain applicants and jobs, resulting in a greater work satisfaction for new employees.
2.3 Creating a Sustainable Overhauling the internship program

Recruitment Process for New Employee Hires
Supply Chain
In addition to changing the recruitment system for new hires, we have improved our
Regular open recruitment Year-round open recruitment
2.4 Building a Healthy Corporate “H-Experience” internship program in order to build a better employer brand and to discover
Culture Recruitment Twice per year – once in the first half, outstanding talent at an early stage. The improved program operates year-round, and the
Year-round recruitment per job
period once in the second half criteria for application have been eased to enable both graduates and undergraduates to
have sufficient time to explore their career possibilities.
- Attracting and Nurturing Multiple Multiple application
Selection of one area per half-year
application (if the screening period does not overlap)
Talents
- Protecting Employee Rights Selection
Approximately 6 months 2 months on average
period
2.5 Contributing to the Development Evaluation

of Local Communities Common capabilities for all jobs Capabilities related to a particular job
criteria
Departmental Placement is based on company

Placement in job/place of work
Our System placement circumstances
New employee Corporate value training per group of

Diversity-centered training per job
orientation employees who join in the same year
Employee Recommendation Recruitment Process Process of the H-Experience
Open a Review Internship Review Practical Announcement

Recommend Join the
Internal recommendation recommendation program for future of Interviews exercise of successful
talent Proceed company
recommendation position to letters and employment applications (2 months) applicants
(system) with the
employee applications
recruitment
Review
process Research
Open Review of Interviews Ends after practical exercise (2-4 months)
Post jobs to the general public internship program
recruitment applications applications
052
1 Introduction
Fostering Talents
2 Sustainable Performance Launching the new employee growth system

Based on the philosophy that the growth of employees equals the growth of the company,
Disseminating a message on innovation via leaders
Hyundai is building a culture that enables employees to develop into experts. Through hard Hyundai runs a program designed to disseminate the key future capabilities of leaders who
work, learning, and knowledge-sharing, our employees expand the scope of their expertise will spearhead innovation. Our leaders must be equipped with “dynamic capabilities” to
to include other areas, in addition to their respective area, while also deepening their promptly detect changes, seize new business opportunities, and restructure resources and
expertise, and thus grow into leaders or job experts. To this end, they constantly exchange capabilities to realize such opportunities, in order to flexibly respond to rising uncertainty
Mid- to Long-term Goals feedback with their leaders based on the personal growth goal (career plan & capability and the sharply-changing environment. In addition, it is essential that they cultivate a digital
improvement plan) that each employee has established, thereby achieving progress from a mindset, in addition to their technical expertise, aimed at developing into providers of smart
Our Commitment long-term perspective. In addition, the growth support system, which provides customized mobility solutions. As such, Hyundai provides its top leaders with opportunities to visit major
internal/external learning solutions based on data, will serve as a foundation for individual countries that are leading the wave of digital innovation and experience customer lifestyles,
2.1 Smart Mobility-based Customer thereby supporting the internalization of key future capabilities.
employees to develop into experts.

Establishing onsite-driven growth infrastructure Nurturing leaders who support the growth of employees
Hyundai has established a wide range of on-site support systems to nurture talent and Hyundai provides its leaders with a performance generation program so that the growth of
2.3 Creating a Sustainable internalize a culture of personal development. The new system enables employees to check employees leads to enhanced organizational performance. By constantly providing balanced
Supply Chain their progress on a dashboard, and also ensures efficient and active feedback between feedback to team members, leaders help them to resolve issues in a timely manner and help
management and team members. In addition, it provides data that can be used to manage them to improve. To this end, we provide various solutions, including guidelines and video
2.4 Building a Healthy Corporate clips, so that both leaders and team members can establish effective performance targets
Culture
each staff member’s growth through the integrated management of growth data. In this
way, we are creating a unique culture in which the company is able to achieve sustainable and exchange feedback, and also offer support through a performance generation program
- Building a Flexible Workforce growth through the personal development of its employees. in connection with the personnel management system.
Talents
Training on sustainability issues Training Hours in 2019
We provide sustainability training for the corporate-wide sharing of issues that may arise
Strategies for Nurturing Talents Job capability training
within the organization, including human rights, safety, and environmental issues, as well
Building a culture where the company’s sustainable growth as for the internalization of a more sustainable organizational culture. In addition to job
47,649
is achieved through employees’ growth capabilities, employees learn about various sustainability issues, the importance of which is
increasingly being emphasized in the business environment as they strive to help establish a
Our System more sustainable culture.
hours
Growth Growth Growth through
through work through learning knowledge-sharing Leadership training
• Improve work-related • Develop new knowledge • Grow by sharing know-how
capabilities through a
growth support process,
and grow into an expert
and skills through training
and learning
• Support through constant
and experience, based on
expertise, with others
• Work as an internal expert,
1,658
hours
based on a career plan learning and customized and create professional
from a mid- to long-term learning materials Areas of Sustainability Trainings
perspective Sustainability training
Human rights Safety Environment

Growth infrastructure
• Build diverse environments required to support employee growth

Sexual harassment prevention
training, etc.
Plant safety training, safety
manager training, etc.
Job training in relation
to the environment,
training on eco-friendly vehicles
6,825
(system, organization, budget, data, HRD quality management, etc.) and fuel cells, etc. hours
053
1 Introduction
Protecting Employee Rights
Employee Communication
Communicating with the labor union in Korea H-MATE communications app
Hyundai fully observes the Korean Constitution and all relevant laws on employee rights, The “H-MATE” is an app designed to promote closer communication between our employees
including the right to organize labor unions and the rights to collective action and collective and to build good labor-management relationships. As of February 2020, some 26,500
Our Commitment bargaining. Moreover, we run the Collective Bargaining Council and the Labor-Management employees had subscribed to the app, with an average of 3,600 people accessing it each day in
2.1 Smart Mobility-based Customer Council, pursuant to relevant laws. In addition, we formed the Job Stability Committee order to use it for a wide range of activities. Its services include company news, work notices,
Experience Innovation in order to prepare for the Industry 4.0 era and guarantee the stable employment of our the “I am Curious” Q&A functions for questions related to the company, the “Let’s Come
employees. Together” function for recruiting club members, and the “Let’s Apply” function for conducting
2.2 Pursuing Eco-friendly Value surveys. Each of these services is helping to bring our employees together by promoting
throughout the Entire Value Chain frequent communication between them. Hyundai’s overseas subsidiaries have either developed
Labor union communication at overseas business sites and are now operating mobile communication apps that reflect the latest trends, or plan to
BHMC and CHMC in China have Chinese Trade Unions; HMI in India and HMMC in the adopt one to facilitate two-way communication with employees. This app is used to provide
Supply Chain
Czech Republic have labor unions; and HMB in Brazil joined the local federation of trade employees with up-to-date information on matters they are curious about and to enhance
2.4 Building a Healthy Corporate unions in the early stage of its existence according to the local labor laws. The subsidiaries convenience. It is also used as a new communication tool to freely listen to the voices of diverse
Culture with labor unions not only conduct collective bargaining with labor unions according to types of people.
local labor laws but also hold regular and irregular meetings with union representatives
to make improvements to working conditions and employee benefits. Hyundai carries
- Attracting and Nurturing out collective bargaining with labor unions in a way most employees can concur with its
Talents conclusions through reasonable and constructive proposals and discussions between labor
- Protecting Employee Rights and management. Our subsidiaries in the U.S., Russia, and Turkey have no labor unions.
Regardless of whether they have labor unions or not, they actively communicate with their
2.5 Contributing to the Development employees through various channels.
The headquarters conducts surveys and interviews with Hyundai employees around
the world on a biennial basis to continue improving employees’ satisfaction with the
Our System
company. Each overseas subsidiary preemptively resolves employees’ complaints and
meets their demands through meetings with executives, grievance counseling rooms,
and top management’s on-site communication. In particular, we offer our field managers
3 Sustainability Factbook various training programs, so that they can enhance their competencies and solve workers’
grievances at the work site as they spend most of their time together with on-site workers.
054
1 Introduction
Improving Safety Leadership
Hyundai is working towards achieving “zero” fatal accidents by strengthening safety leadership under the guidance of top management. Major safety leadership activities are designed 1)
Wearable robot that supports the
2 Sustainable Performance to facilitate the implementation of safety policies and to build a culture of safety. They are also making significant contributions to the prevention of safety accidents with all employees upper body, thus reducing the
strain on workers’ arms
performing as safety personnel. In addition, our company-wide safety meetings and overseas video conferences enable us to operate exactly the same safety policies at our Korean and
2)
overseas worksites. We also widely promote outstanding examples of business site safety in order to ensure that safety management continues to improve throughout the company. Wearable robot that reduces the
burden on the lower body when
Sustainability Management in a sitting position
Establishing a system to respond to fatal accidents Comprehensive emergency response drill
3)
A company that makes a significant
contribution to improving the
Mid- to Long-term Goals Hyundai is establishing a system to prevent and respond to fatal accidents by strengthening We run a comprehensive emergency response drill that is attended by all our internal employees. environment by substantially
the inspections of all dangerous processes where there is a possibility of fatal accidents, and The drill is intended to minimize personnel/material damages by implementing rapid response reducing its pollutant emissions,
Our Commitment by managing frequently occurring accidents. In addition, we identify any safety accident measures in the event of an emergency situation. Situations that have a real chance of occurring improving its products’
risks that may arise as a result of workers’ unsafe conduct, and eliminate them in advance. are assumed for training, such as the initial response and emergency evacuation, as well as eco-friendliness, and building
2.1 Smart Mobility-based Customer Furthermore, by analyzing each type of accident and presenting appropriate solutions, we extinguishing oil storage tank/RTO fires. In 2019, we conducted two sessions of comprehensive a green management system
have achieved “zero” fatal accidents for three consecutive years. We will continue to make emergency response drills at each plant in the first half and the second half of the year. These
2.2 Pursuing Eco-friendly Value workers’ safety and the protection of their lives our top priority, and engage in advanced activities are exceptionally helpful in getting workers to familiarize themselves with the actions
throughout the Entire Value Chain safety management activities to maintain a record of zero fatal accidents at our business sites. that must be taken in emergency situations.

Supply Chain Applying H-SAT to plants in Korea Making floor paths safer through design
Hyundai has developed the “H-SAT (Hyundai-Safety Assessment Tool)” to assess its health Hyundai has used design to set up safe paths within its plant buildings in order to prevent
and safety management. In 2019, we applied H-SAT, involving 13 major categories and collisions and other accidents caused by the unloading and transporting equipment. There
Culture
322 questions, to 10 sub-divisions at our plants in Korea to assess health, safety and the are inevitably potential hazards on the floor paths of our plants because they are used both by
- Building a Flexible Workforce environment (HSE) management status, and to identify their strengths and weaknesses. vehicle-type heavy equipment and by workers on foot. Hyundai has therefore implemented a
- Attracting and Nurturing Based on the evaluation results, we made improvements and significantly enhanced HSE system of highly visible, easily recognizable colors to mark worker footpaths and crossroads.
Talents level at our plants. Hyundai is now building a constant evaluation system which will frequently This has improved the safety of our workers and enhanced the overall worksite environment
evaluate major H-SAT categories in order to prevent accidents and thus maximize on-site at plants where it has been put into practice. Going forward, we will standardize the use of this
safety. We will continue to manage both our safety processes and the results thereof so that system and make it mandatory at our new plants, as well as applying it to existing plants, thus
we can build the best possible safety management systems. creating safer workplaces throughout the company.
New technologies to prevent musculoskeletal disorders Promoting a safety culture

Our System Hyundai is continually adopting new technologies at its worksites in order to protect the health Hyundai is carrying out various safety culture activities. We provide special safety training to safety
and safety of its workers. We have independently developed and run pilot operations for a personnel and supervisors to raise their awareness of their roles as managers, and to improve
wearable robot suit “H-VEX”1) and a wearable robot chair “H-CEX”2) which offer outstanding their attitude regarding safety. In addition, training is provided to various sectors according to their
3 Sustainability Factbook design and user-friendliness in alleviating the strains on the musculoskeletal system caused respective characteristics, including the transport department and the maintenance department,
by our work processes. These wearable robots give support to muscles in vulnerable parts of where there is a risk of fatal accidents. We are also taking a step closer to production sites with
the body, such as the neck and shoulders, as a way to prevent musculoskeletal disorders, and greater familiarity through the annual “On-site Safety Golden Bell”, traffic safety campaigns, anti-
Sustainability Magazine also to increase work efficiency. Going forward, we will continue to research and apply new smoking campaigns, and other activities to build a safety culture. These activities are also helping
technologies to protect the health and safety of our workers in line with the Industry 4.0. our employees to enhance their safety mindset and to improve safety morale at our production sites.
H-LWC Designated as a green company

Hyundai has introduced the “H-LWC (Hyundai-Lost Workday Case)” safety management The Ministry of Environment has bestowed the designation of an eco-friendly “green
index in order to better manage the main indicators of accidents which have led to one or company3)” upon Hyundai’s Ulsan Plant and Asan Plant. Our Ulsan Plant was designated
more days of temporary closure. This has enabled us to strengthen activities to reduce the as a green company in 1996, followed by the Asan Plant in 1998, and both entities have
total number of accidents with the goal of preventing serious and fatal accidents. It also has successfully maintained this prestigious status ever since. We will continue providing
a significant impact on our move towards the preemptive management of safety from the considerable support and making investments aimed at protecting both employees’ health
previous follow-up index management focused on the accident rate. and the environment, as well as conducting green management activities.
055
1 Introduction
Safety Management Activities at Overseas Business Sites
2 Sustainable Performance HMMA • Improved pedestrian safety and mobile equipment HAOS • Reinforced safety training using high-altitude work platforms

‒ Enhanced workers’ safety by setting up LED lights in movement zones • Enhanced worker safety and prevented fires in dangerous work zones
to secure movement paths and high visibility by improving the forklift battery charging room
Sustainability Management ‒ Prevented fatal accidents, such as road accidents between workers and
Materiality Analysis pedestrians, by installing a driving light on a tugger (mobile equipment) HMB • Made preparations for emergency situations at any time by conducting
that is used to show the movement direction joint public and private fire drills for all employees
BHMC • Applied an AI-based facial/motion recognition safety alert system • Conducted fire prevention activities in preparation for the dry season
(first among all Hyundai worksites) (July-September)
Our Commitment
2.1 Smart Mobility-based Customer HMI • Mounted warning lights on all vehicles to overcome forklift blind spots
Experience Innovation and secure safe distances
• Developed a forklift fork exclusively for loading and unloading drums
HMMR • Prevented fatal forklift accidents by adopting the “SpotME” alert
system
Supply Chain • Adopted a measure to strengthen safety management by HMMR
designating zones by danger grade at each plant
Culture HMMC • Conducted a joint safety inspection of the work environment HMMA BHMC
- Building a Flexible Workforce • Amended the zero injuries award system and applied it accordingly HMMC
HAOS
Talents
HMI
Our System HMB
Sustainability Magazine 1 Improved pedestrian safety and mobile

equipment (HMMA)
2 Mounted warning lights on all vehicles
to overcome forklift blind spots and
secure safe distances (HMI)
3 Reinforced safety training using high-
altitude work platforms (HAOS)
4 Made preparations for emergency
0.6 M 0.6 M
situations at any time by conducting
joint public and private fire drills for
1 2 3 4
all employees (HMB)
Building a Area of Implementation 2019 Outcome & Mid- to Long-term Plan
Healthy Corporate Smart organizational culture

• Reformed the employee position system and expanded flexible working hour system
to include plant managerial and R&D staff
• Establish an agile HR operation system driven by on-site and improve the HR system to
continue to drive work engagement
Culture Building
• Established a quick decision-making process with leaders taking a central role
(Leaders Forum, Roundtable Meeting)
• Build employee trust towards change; and continue to innovate the way of working
• Establish a culture of collaboration based on information sharing and communication
a Flexible Building a foundation for change and • Improved the workplace culture by avoiding unnecessary meetings and reporting, among different divisions
With flexible thinking in business becoming
Workforce innovating the way of work as well as abolishing the approval board and handwritten approvals • Create new customer value (outcome) by internalizing creative thinking and the challenging
ever more important, Hyundai is creating an • Established a horizontal communication culture through two-way communication, such as spirit
organizational culture which is both flexible Town Hall Meeting, anonymous communication channel, survey on change management, etc.
and innovative. We are improving our work Employee-friendly corporate culture • Organizational culture survey has demonstrated improved positive responses for three consecutive years
process through more efficient reporting • Implemented a pilot program of employee recommendations for hiring experienced professionals
systems and communications, and we have Recruiting talents • Overhauled the internship system to attract outstanding talents (H-Experience)
overhauled our job title and recruitment Attracting • Expanded the year-round recruitment to be applied at the corporate level, with all new hiring in 2019 undertaken through this system
and Nurturing
systems. We place the highest priority on Talents • Established a human resources development system for each division of the company • Launch the new employee growth system (2020)
workers’ rights and job satisfaction, which Fostering talents • Developed constant learning solutions at the corporate level • Collect employee growth data and use it in connection with the personnel management system
(digital learning materials, micro learning, etc.)
is why we operate multiple on-site and
bi-directional channels of communication. • Offered briefing sessions and operated discussion channels • Launch the Future Change Response Taskforce Team to discuss measures for sustainable growth
(Work Change Promotion Committee, Wage System Improvement Committee, and employee job stability in response to structural changes in the future automotive industry
Employee communication Job Stability Committee, Occupational Safety and Health Committee) (2020)
Protecting • Helped employees to better understand company policies, and to communicate and
Employee collaborate with each other through the renewal of the H-MATE communication app
Rights
• Achieved “zero” fatal accidents for 3 consecutive years • Continue to improve safety management throughout the company, both at home and aboard,
Improving safety leadership • Developed the “H-SAT”, a tool for evaluating the level of health and safety management, and by strengthening the execution capabilities of safety management policy
applied it to 10 business divisions at the plants in Korea
2019 Highlights
Improved personnel management system Year-round recruitment for new employee hires Zero fatal accidents, zero serious fires, zero traffic fatalities
Hyundai has increased employee autonomy and career opportunities by In line with the changes in the automotive industry, led by electrification and Hyundai places the highest priority on its employees’ health and safety,
improving its systems related to positions/titles, evaluations, promotions, digitalization, Hyundai recruits employees who can focus future technologies which is why our advanced safety management systems are designed to
compensation, and training. By integrating positions/titles and making and new businesses. As a result, the previous regular open recruitment of new preemptively address worksite risks. We use our H-SAT safety evaluation tool
evaluations and promotions based entirely on ability, we are creating a culture employees has been replaced by a year-round recruitment program, enabling to assess and strengthen safety management throughout our organization.
which respects and rewards the expertise of each individual. We have also individual worksites to hire people with the requisite job skills as and when Furthermore, we have integrated IoT technologies into every part of our
established a new system of compensation linked to an absolute evaluation required. In addition, the employee recommendation and H-Recruiter systems worksites in our concerted efforts to build safe workplaces that are free from
of employee performance. In addition, we have put in place in-depth training are enhancing our ability to recruit externally in areas which require targeted safety blind spots.
systems to support the professional growth of our employees. strengthening to ensure future competitiveness.
Our Commitment 05
Contributing to the In order to fulfill its responsibilities as an automobile company, Hyundai undertakes
a wide range of dedicated social contribution activities aimed at reducing fine dust
Development of emissions and preventing traffic accidents, especially those involving children.
In addition, we contribute to global social value through CSV programs, which
Local Communities enables win-win growth in partnership with local communities.

058
1 Introduction
CSV Strategy
CSV Strategy System

Materiality Analysis Hyundai conducts management activities based on our CSV strategy system, through which we create social value and make positive impacts on society. We are striving to build a sustainable
corporate ecosystem with a particular focus on five areas – eco-friendly, mobility innovation, traffic safety, future generation, and community.
Our Commitment
2.1 Smart Mobility-based Customer Vision Progress for Humanity


Mission Scaling social impact and building a sustainable business ecosystem by creating shared value
Supply Chain
Value
2.4 Building a Healthy Corporate Innovation Communication Growth
Culture
2.5 C
ontributing to the Development
Develop ideas on value creation through Take actions based on communication Build a future society where we grow
- CSV Strategy
a creative and innovative approach and collaboration with stakeholders together with communities in harmony
- CSV Activities by Area
- Global CSV Activities Create social value through business model Contribute to solve social problems Support community development
Strategy
and innovation by using business capabilities based on social responsibility
Our System
Area
Eco-friendly Mobility innovation Traffic safety Future generation Community
3 Sustainability Factbook Develop eco-friendly products, Provide solutions to individuals Develop new safety technologies Provide opportunities for the Provide support and engage in
recycle resources, and conduct and sectors that do not have access and activities to prevent traffic growth of future generations – collaborative activities based on
other activities to reduce to mobility as well as to accidents and support traffic children, teens, and youth – the needs of local communities,
environmental pollution isolated regions accident victims and offer them support including NGOs and suppliers
059
1 Introduction
CSV Activities by Area
Eco-friendly
“Eco-friendliness” is becoming a global trend, and it also a strategic path to follow to achieve sustainable growth. Hyundai is therefore expanding its
Mid- to Long-term Goals investment in vehicle electrification, while also carrying out a wide range of eco-friendly activities, thereby paving the way towards a sustainable future.
Our Commitment
IONIQ Forest “IONIQ Classroom Forest” to protect our children from fine dust Lending a Helping Hand – Love My City
2.1 Smart Mobility-based Customer Since 2016, Hyundai has been carrying out the IONIQ Forest project together with Tree Hyundai contributes to reviving old, dilapidated urban areas in Seoul by creating mural
Planet and SUDOKWON Landfill Site Management Corp. The project involves planting trees paintings and improving public parks. We have been conducting this project twice a year
2.2 Pursuing Eco-friendly Value to reduce fine dust at the Incheon metropolitan landfill site. The IONIQ Forest project aims since 2014 and built a forest within and outside Dangsan Elementary School in 2019. In
throughout the Entire Value Chain to create “fine dust-preventing forests” by planting over 30,000 trees by 2020 together with partnership with Tree Planet, a social enterprise that plants trees all over the world, we
forest-building experts, IONIQ customers, and IONIQ Longest Run participants. planted 500 shrubs that absorb fine dust at the school. We also provided 6,030 air-purifying
2.3 Creating a Sustainable plants that generate oxygen and absorb carbon dioxide to 670 classrooms.
Supply Chain In 2019, we planted 5,000 zelkova, oak, and pine trees that absorb fine dust in a bid to
create a fine dust-prevention forest. As of the end of 2019, a total of 20,250 trees had been
2.4 Building a Healthy Corporate Hyundai Green Zone Project
planted. In April 2019, we launched a new program, called “IONIQ Classroom Forest”, and
Culture
donated nine trees to 670 classrooms at 22 elementary schools, thereby providing around The Hyundai Green Zone Project is a global ecological restoration project that Hyundai
2.5 C
ontributing to the Development 6,000 air-purifying plants for elementary school students who are vulnerable to the harmful Motor Group has been carrying out since 2008. The 1st Hyundai Green Zone Project was
of Local Communities effects of fine dust. carried out from 2008 through 2013, and covered 50 million square meters in Chakanor,
Apakachi, Inner Mongolia, which is a leading source of fine dust in China. We successfully
- CSV Strategy
improved an alkaline salt desert into grasslands with abundant grass. Since 2014, we have
- CSV Activities by Area been engaging in activities to restore the Baoshaodainao Nur, Zhenglan Qi and Haginor
- Global CSV Activities Ecological Value of IONIQ Forests regions into grasslands. Moreover, college student volunteer groups in Beijing and Tianjin,
as well as employee volunteer groups of Hyundai and other participants are continuing
activities to prevent desertification.
Our System
35.7g/year 722,925 g/year In recognition of its contribution to society in China, Hyundai Motor Group was ranked
first in the automotive industry in the Corporate Social Responsibility Development Index
3 Sustainability Factbook Amount of fine dust absorbed by 1 tree Amount of fine dust absorbed by IONIQ Forests Evaluation conducted by the CSR Research Center of the China Academy of Social Sciences
(20,250 trees as of 2019) for four years in a row. In the overall company ranking in China, the Group went up one
ranking from last year to take the 4th place.
Effects of an Urban Forest, the Lungs of the City Center
Climate change mitigation Noise reduction Air purification Rest and relaxation
Lower the average midday When needle leaf trees are planted by 1 tree absorbs 2.5 tons of carbon dioxide, Serve as a rest space
temperature in summer by 3-7℃, roads, automobile noise and truck noise releases 1.8 tons of oxygen, and absorbs and offer psychologically
and increase humidity by 9-23% is reduced by 75% and 80%, respectively 35.7 g/year of fine dust per year stabilizing effects
1
1 IONIQ Classroom Forest
060
1 Introduction
Mobility Innovation
“Mobility” is one of the core values that Hyundai pursues as we evolve into a smart mobility solution provider. We also pay close attention to the
underprivileged and the mobility-impaired, and by providing them with mobility solutions, we are creating tomorrow’s mobility innovation today.
Sustainability Management Happy Dream Car Easy Move Inc.

Materiality Analysis To provide mobility to mobility-challenged people such as the elderly and the disabled, Hyundai supports Easy Move Inc., a social enterprise. Established in 2010 by Hyundai Motor
1)
Consisting of a small motor and
Hyundai carries out the Happy Dream Car project by providing cars to welfare organizations Group, Easy Move is using exclusive technology to produce vehicles and mobility assistance a battery, a wheelchair power
Mid- to Long-term Goals assist is attached to a manual
and NGOs in areas where our business is based, including Ulsan, Asan, Jeonju, and equipment for the disabled and the elderly, backed by the support from Hyundai. Further,
wheelchair, enabling it to be
Namyang. This project does more than just provide transportation: it delivers lunch boxes, it develops such products as electric wheelchairs that provide even greater convenience used like an electric wheelchair.
Our Commitment
provides an emergency relief service, takes part in cultural and welfare activities in nearby compared to previous products. Just nine years after its establishment, Easy Move received This combines the advantages
2.1 Smart Mobility-based Customer areas, thereby helping the underprivileged feel less marginalized. a Presidential citation for its outstanding performance and social contributions. Hyundai has of a manual wheelchair, which
Experience Innovation been active in fostering and supporting social enterprises, and thus being evaluated as a major can easily be loaded into a car or
plane, and the advantages of an
contributor to the social enterprise ecosystem.
2.2 Pursuing Eco-friendly Value electric wheelchair, which is much
Happy Dream Bus easier to use. The price of power
Since 2015, Hyundai has been operating the Happy Dream Bus project to help mobility- assist usually ranges from KRW
impaired individuals go to more places, providing them with opportunities to enjoy more Wheel Share 1.8 million to KRW 7 million per
diverse experiences in a bigger world. In particular, our Jeonju Plant has been donating Hyundai Motor Group has run the Wheel Share program since May 2018, in partnership with unit, making it expensive for many
Supply Chain
disabled people.
funds for bus rentals and traveling expenses on 226 occasions to 155 organizations for five Green Light and the Community Chest of Korea. Power assist1) gives significant help to the
2.4 Building a Healthy Corporate years since 2015. We will continue to impartially select and support various organizations disabled who use manual wheelchairs – it is, however, expensive. In order to resolve this
Culture to include all of the underprivileged. By doing so, we will go beyond guaranteeing mobility problem, Hyundai followed up on the idea of its car sharing services to launch a new social
rights of the less fortunate and contribute to their happy lives and make more efforts to contribution program which provides power assist free of charge to the disabled.
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become a reliable means of transportation at all times to our communities.
Uses make a reservation at the Wheel Share website (wheelshare.kr) to fit in with their travel
- CSV Strategy Support by Business Site schedule. A volunteer from Wheel Share then visits their home or workplace to deliver power
- CSV Activities by Area assist, attach it to the manual wheelchair, and provide safety training. The rental period is up to
Business Site Since Happy Dream Car Happy Dream Bus
two weeks, and a volunteer will also visit the user in order to collect the power assist back from
- Global CSV Activities Ulsan Plant 2005 170 vehicles 274 occasions
them. In 2018, the Wheel Share program was limited to Seoul, but in 2019 it was extended to
Asan Plant 2009 17 vehicles – include Gimpo International Airport, in cooperation with the Korea Airports Corporation, and
Our System Jeonju Plant 2015 5 vehicles 226 occasions the KTX Gwangmyeong Station. We are currently preparing to run Wheel Share in Busan City
Namyang R&D Center 2011 14 vehicles 40 occasions and at Jeju International Airport, starting in the second half of 2020.
Total 200 vehicles 477 occasions
3 Sustainability Factbook * As of 2019 year-end; and accumulated figures
Wheel Share Performance (Cumulative)
1,055 persons 7,566

No. of rentals No. of days of rental
(790 in 2019, 265 in 2018) (5,554 in 2019, 2,012 in 2018) 1 Happy Dream Car
1 2
2 Wheel Share
061
1 Introduction
Traffic Safety
“Safety” takes priority and should not be compromised under any circumstances. To this end, Hyundai strives to produce vehicles that meet the highest
standards of safety and quality. We are also making concerted efforts to prevent traffic accidents so as to repay the trust of our customers and society.
Sustainability Management Driving Plus Visiting Driving Plus Program Traffic Accident Zero for Children Campaign
Materiality Analysis In February 2019, Hyundai launched a virtual driving-related social contribution program Hyundai is running the Traffic Accident Zero for Children Campaign aimed at preventing
aimed at helping inexperienced drivers overcome their fear of driving and develop confidence traffic accidents while children are en route to and from school by providing safer school Traffic Accident Zero for
in their driving abilities. “Driving Plus”, developed for drivers who have a fear of driving or find vehicles. This campaign began in 2016, when Hyundai, the Citizens Coalition for Safety, and Children Campaign
● Social situation
driving difficult, uses a one-ton truck equipped with a mobile simulator to train drivers on a technology cooperation partnered together to donate commuter vehicles installed with an
Our Commitment ● Hyundai’s approach
how to drive defensively in various traffic situations, and at the same time, introduce them to array of safety technologies to childcare centers. We are continuing the campaign to reduce
2.1 Smart Mobility-based Customer Hyundai’s safety technologies. In addition, we plan to provide continuous training to drivers traffic accidents involving children on the way to and from school. Starting in 2019, we 2016
Experience Innovation who have been involved traffic accidents to help them overcome their trauma. took a new approach by providing a full package of safety and convenience functions to 70 ● The Saerimi Act has been enforced
vehicles that are currently in operation in order to help a greater number of school vehicles (six mandatory safety options), but
to drive safely. In this way, we are focusing on expanding the number of beneficiaries and many vehicles are not installed with
throughout the Entire Value Chain Robocar Poli Traffic Safety Campaign Traffic Safety with Robocar Poli the options due to financial issues
increasing our contributions to society.
● Donate new vehicles equipped with
2.3 Creating a Sustainable Hyundai runs a campaign to prevent traffic accidents involving children, featuring the popular the mandatory safety functions
Supply Chain cartoon character Robocar Poli. The campaign includes traffic safety animation series, stipulated in the Saerimi Act
educational programs, and an experiential space. Some 12,000 people in three cities of Korea Traffic Safety Veteran Class
2.4 Building a Healthy Corporate participated in the “Traffic Safety Class” in 2019. In addition, our sales branches in Korea run According to the Road Traffic Authority, the number of fatalities caused by traffic accidents in 2017
Culture the “Hyundai Poli Traffic Safety Playground”, attracting 30,000 visitors per year, and there are Korea is decreasing, while the proportion of the elderly among road traffic deaths rose from ● The mandatory safety options
also “Poli Kids Zones” at six sales branches in China and Taiwan. In 2019, we provided a Traffic 39.3% in 2015 to 44.5% in 2018. In particular, seniors aged 65 or more accounted for 56.6% stipulated in the Saerimi Act
2.5 C
ontributing to the Development become popularized
Safety Class at the 2019 Seoul Motor Show held at KINTEX in Goyang City, Gyeonggi Province, of pedestrians that died in road accidents last year. In case of pedestrian traffic accidents, the
of Local Communities ● Donate vehicles equipped with
in order to publicize the campaign to people of various age groups who are interested in cars as mortality rate of seniors is 7.04%, 13 times higher than that of people aged 14 or less (0.54%). additional safety technologies
- CSV Strategy well as to families with infants. As such, traffic accidents involving the elderly are becoming an important social issue. Together
with the Road Traffic Authority, Korea Association of Senior Welfare Centers, and Community 2018
Chest of Korea, Hyundai has been running the “Traffic Safety Veteran Class” to promote the ● Discuss possible legislation to make
- Global CSV Activities Hyundai Kid’s Auto Park Ulsan traffic safety of the elderly since 2016. The class is available to citizens aged 65 and over, and it the installation of complementing
functions to prevent accidents
Hyundai opened the “Hyundai Kid’s Auto Park Ulsan”, the largest traffic safety experience consists of education on safe driving and pedestrian safety; self-diagnosis of driving skills and
due to confinement in vehicles
Our System center for children in Korea. This new Auto Park offers a wide range of experience-based cognitive/physical ability; and measures to be taken in the event of a traffic accident. Over the mandatory
traffic safety and other facilities, including a virtual auto experience hall, an experience course, last four years, some 12,000 seniors have completed the class at 119 senior welfare centers ● Apply the additional “sleeping child
education about safety belts, safety information for pedestrians, learning about blind spots, and across the nation. We also hold the annual Senior Traffic Safety Golden Bell Quiz Contest at check function”
a driving experience using a Kona mini motorcar. Our experts have created these experience- the national level for the elderly who complete the class with outstanding performance. In
3 Sustainability Factbook 2019
based programs in order to teach children the traffic safety rules they need to know in their addition, we provide vehicles that are loaded with all the necessary equipment to the Road
● School vehicle accidents continue
daily lives. Children who complete the program are rewarded with a traffic safety license. Traffic Authority to support visiting traffic safety education in remote areas, thereby enabling
to occur despite efforts to enact
more than 3,000 seniors take the education class every year. laws on safety and convenience
Sustainability Magazine functions
● Support the installation of a full
safety and convenience function
package on school vehicles that are
currently in operation
1 Driving Plus
2 Traffic Safety Class at the 2019
Seoul Motor Show
1 2 3
3 Hyundai Kid’s Auto Park Ulsan
062
1 Introduction
Future Generation
“Future” is being shaped by a new generation. That is why Hyundai is reaching out to join hands with children, teenagers, youth, and other future generations
in a bid to grow together with them. To this end, we think and act in new ways through which we can create positive social change for the better.
Sustainability Management Looking for Three-Leaf Clovers Hyundai Dream Center

Materiality Analysis The Looking for Three-Leaf Clovers is a program in which college students provide one-on- Hyundai operates the Hyundai Dream Center, a vocational program to help young people in
Mid- to Long-term Goals one career mentoring to children from families that have been affected by traffic accidents. developing nations develop technical skills. Hyundai Dream Center is a project that we carry
In 2019, the program was offered to 50 teenagers from families afflicted by traffic accidents. out in cooperation with Plan International Korea, and a venue through which we provide
Launched in 2005, this program was initially a donation project and later developed into our advanced automobile maintenance skills to developing countries. The first Hyundai
Our Commitment
career mentoring by undergraduates. Support has been provided to a cumulative number Dream Center was opened in Ghana in 2013, followed by those in Indonesia, Cambodia, and
2.1 Smart Mobility-based Customer of around 1,590 teenagers. Through this program, children afflicted by a traffic accident Vietnam. The Hyundai Dream Center in the Philippines, opened in 2018, provides technical
Experience Innovation have been given an opportunity to explore their career options and received emotional education, and of the 123 graduates produced by the Hyundai Dream Center in the
support. The college student volunteers served as mentors and sponsors to the teenagers, Philippines, 102 outstanding students have found employment with a local Hyundai dealer.
thus experiencing the joy of sharing their talent. We will continue to make efforts to provide We opened our 6th Hyundai Dream Center in Peru in April 2019, accepting 63 local young
growth opportunities to teenagers traumatized by traffic accidents, and faithfully carry out people (43 males, 20 females) from low-income families who face difficulties in finding Hope Engine Science Class
2.3 Creating a Sustainable social responsibilities related to traffic safety. a high-quality job. It is our plan to provide quality education on various subjects for six
Supply Chain semesters over a period of three years. With the Hyundai Dream Center, we will help youths Supporting the growth of
from developing nations to hone their talents and skills. future generations by running
2.4 Building a Healthy Corporate H-Social Creator the science class at an
Culture elementary school (a branch
Hyundai launched the H-Social Creator (HSC) program in 2015 in order to identify social school) in the outskirts of Asan
issues and to discuss ways to resolve them with young college students who have creative Hope Engine Science Class and a children’s center in the
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problem-solving skills. We also sought to discover opportunities to generate synergies by Hyundai implements the Hope Engine Science Class program in order to encourage local Cheonan region
integrating social issues with Hyundai’s business. The program, which consists of a basic children to gain a stronger interest in engineering. From March through December 2019,
- CSV Strategy workshop, a design camp, and employee mentoring, caters to undergraduate students (30 employees at Hyundai’s Asan Plant and a local volunteer group of undergraduates visited Hope Engine Science Class in 2019
- CSV Activities by Area persons per year; cumulative total of 144 persons) who are interested in CSR and social six elementary schools in the Asan area and six local children’s centers in the Cheonan area
issues, and supports the development of CSV ideas that could lead to social innovation. once a month, and donated their talents using an advanced science kit. Through the Hope
180
- Global CSV Activities
The education program was further strengthened in 2019 to offer various experiential Engine Science Class, we aim to help children better understand scientific principles, and
opportunities and mentoring programs designed to allow the participants to physically discover and foster gifted children in science through a creative approach. We will continue
Our System experience social issues rather than simply understanding them. In addition, Hyundai Motor to offer diverse learning opportunities to empower children to discover, develop and grow Elementary school students
India Headquarters adopted the HSC for college students in India for the first time in 2019 their talent to tackle future challenges, and promote technology and science among future in Asan
and implemented the program in five major cities including Mumbai, Pune, Bengaluru, generations.
120
and Chennai, in addition to Delhi and the surrounding regions. The program garnered
the participation of more than 2,000 students from five cities and ten organizations
(undergraduate and graduate schools).
Children at children’s centers
Sustainability Magazine in Cheonan
1, 2 H-Social Creator
1 2 3
3 Hope Engine Science Class
063
1 Introduction
Brilliant Kids Motor Show H-Dream Planner

2 Sustainable Performance Hyundai hosted the 4th Brilliant Kids Motor Show at the Dongdaemun Design Plaza. The show Since 2018, Hyundai has been running H-Dream Planner, a mentoring camp for high school
consists of an exhibition in which children’s drawings of the cars of their dreams are selected students hoping to become auto mechanics. In 2019, staff from 22 repair and maintenance
and turned into real models and then put on display so that visitors can experience them. centers across the nation were matched one-on-one with local students studying to become
Sustainability Management In 2019, six drawings were chosen after careful consideration of the approximately 10,000 auto mechanics. They had the opportunity to attend a three-day mentoring camp that was
Materiality Analysis entries. By installing kiosks that enabled customers to interact with the works, we established based upon five themes. Through this program, students had a good opportunity to explore
Mid- to Long-term Goals an arena where we were able to take a step closer to the audience. possible careers and gain knowledge to quench their curiosity about cars, while the mentors
found it a fruitful way of providing practical mentoring to future generations. The H-Dream
Planner camp is not simply a one-time event, but rather enables continuous mentoring
Our Commitment Future Automobile School through a follow-up program. Going forward, we will provide more active support so that a
2.1 Smart Mobility-based Customer Hyundai operates the Future Automobile School for teenagers. Launched in 2016, the Future greater number of students can move towards their dream of becoming a mechanic.
Experience Innovation Automobile School is a special career education program under the free semester system
for middle school students in Korea. It offers theory, experience, and practical training to
2.2 Pursuing Eco-friendly Value increase understanding about the automobile industry, which in turn enables students to H-Junior Orchestra
explore automobile-related jobs. In 2018, we strengthened our content on hydrogen energy Hyundai’s Namyang Technology Research Center runs an orchestra program for marginalized
2.3 Creating a Sustainable and future cities to enhance understanding of the future automotive industry. To remove children who lack educational opportunities. The H-Junior Orchestra program recruits around
Supply Chain inequality in career education opportunities, this program gives priority to students from 70 children, provides them with musical instruments, including violins, cellos, flutes, and
rural areas, such as mountain villages and fishing villages, and those from special schools clarinets, provides a weekly performance education, and hosts an annual concert. Annual
2.4 Building a Healthy Corporate for the disabled. We are also expanding the scope to include eight Asian countries that are concerts were held in January 2018 and in June 2019. By providing cultural and artistic
Culture the subject of multicultural families, including Vietnam and Thailand, in addition to Korea, in activities in which underprivileged children cannot easily engage, we actively seek to support
connection with the Ministry of Education. These are part of our efforts to contribute to global their creative and artistic development.
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teenagers’ exploration of changes in the future automotive industry and career paths.
- CSV Strategy
Vision Drive
Hyundai’s Namyang Technology Research Center is carrying out the Vision Drive project,
which uses the professional knowledge of outstanding R&D personnel to provide educational
opportunities to teenagers in local communities. In September 2018, R&D employees visited
nearby schools as volunteer teachers to share their knowledge and experience in various
Our System
research areas related to automobiles, engineering, and design. In addition, around 1,300
students were invited from a nearby middle school to take a tour of Motorstudio Goyang and
attend a lecture. Through Vision Drive activities, we educate students about professional areas,
such as automotive research and manufacturing processes, to increase their understanding of
the automotive industry and provide information regarding future career paths.
1 Brilliant Kids Motor Show –

“Balloon Car”
2 Future Automobile School
1 2 3
3 H-Dream Planner
064
1 Introduction
Community
2 Sustainable Performance Preserving the Petra World Heritage Site Employee Volunteer Corps
Hyundai provides support to preserve the Petra World Heritage Site in Jordan. Petra is an There are 127 employee volunteer corps at Hyundai, run by each of our business sites as
ancient historical site that has been a UNESCO World Heritage Site since 1985. It is one of a way of promoting volunteer activities by our employees. A representative example is the
Sustainability Management the New Seven Wonders of the World and is attracting a keen interest from many people weekday volunteer corps made up of some 970 technical staff from the Ulsan Plant who
Materiality Analysis around the world. We have devised a three-year action plan running through 2020, and we are leverage their talent in helping marginalized citizens in their local community. In addition,
Mid- to Long-term Goals implementing it to preserve the Petra region, which attracts around 1 million tourists a year, and the Asan Plant organizes a volunteer group consisting of the wives of its employees. The
to promote the local economy. group undertakes social contribution activities to support the elderly in the local community.
By operating such a volunteer group, we provide cultural experience activities for people
Our Commitment
In 2018, the first year of the plan, we made such improvements to render the site more who have been marginalized in local communities, including senior citizens, and plan to
2.1 Smart Mobility-based Customer tourist-friendly by setting up a free Wi-Fi service, better signposts, outdoor ad installations, an extend the reach of the volunteer group to cover welfare blind spots such as households in
Experience Innovation information app and map, and a scale model of the site created by 3D printing. In the second which children are being raised by their grandparents.
year, we developed a tour route using eco-friendly electric buses, and provided support
2.2 Pursuing Eco-friendly Value for building eco-friendly infrastructure. In the third year, we will help the local community Hyundai employees are giving a helping hand to their underprivileged neighbors by
develop capabilities, thereby facilitating the regional economy. We recognize the importance planning and executing volunteer activities that reflect the characteristics of their respective
2.3 Creating a Sustainable of the cultural heritages we hand down to our future generations and will cooperate with all business sites. In 2019, some 26,933 employees participated in the volunteer activities for
Supply Chain stakeholders to preserve their value. a combined total of 68,104 hours. We will continue to engage in activities that leverage our
employees’ talents on behalf of people who need a helping hand.
2.4 Building a Healthy Corporate Action Plan for Preserving the Petra World Heritage Site
Culture
2018 2019 2020 H‒Self Sharing Planner
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H-Self Sharing Planner program is designed to encourage staff to voluntarily plan and
of Local Communities Bring improvements at the site Develop infrastructure for a tour Promote the regional economy,
through a free Wi-Fi service, route, and operate eco-friendly and develop capabilities
execute their volunteer activities. The company set volunteer targets and periods for
- CSV Strategy better signposts, an information electric shuttle buses volunteer activities in the past, making it difficult for employees’ ideas to be reflected.
- CSV Activities by Area app, etc. In contrast, the H-Self Sharing Planner enables self-directed volunteer activities since
volunteer activities are based on voluntary planning by employees themselves. In 2019,
the creative planning of staff led to volunteer activities on 957 occasions in a total of 10
areas. These included carrying out various leisure activities with local children, such as
confectionery, bakery, and art, and volunteer activities that supported elementary school
Our System
students’ “car maker” hobby activities.
Go Petra app available Log-in screen for Informational map for tourists
in five languages the free Wi-Fi service available in 10 languages
1 Preserving the Petra World Heritage

Site ‒ Information Signage
1 2
2 Employee volunteer corps
065
1 Introduction
Happy House Global Partnership for Arts and Culture

2 Sustainable Performance Our Happy House project provides daily necessities to the low-income class who are in the Hyundai supports a wide range of exhibitions and creative programs in partnership with major
blind spot of the welfare system and helps improve their residential environment. Together with art institutions across the globe, so that more people can be given the opportunity to enjoy
the Hwaseong City Social Welfare Council, Hyundai’s Namyang Technology Research Center arts and cultural activities. Hyundai has been carrying out the “MMCA Hyundai Motor Series”
Sustainability Management recruited beneficiaries residing in Hwaseong City, and identified the needs of beneficiaries. since 2014, in partnership with the National Museum of Modern and Contemporary Art (MMCA)
Materiality Analysis Accordingly, we repaired heating boilers and water leaks. We will continue to take interest in the of Korea, helping to expand the horizons of Korean art and extend its global reach. Hyundai
Mid- to Long-term Goals lives of the underprivileged and provide them with full support for a better life. supports contemporary Korean artists hold large-scale solo exhibitions every year including
hosting seminars and producing publications in connection with the exhibition. In addition, we
newly launched the “Project #” in 2019, with the goal of identifying next-generation Korean
Our Commitment H-Local Partner artists, standing by their side as they unveil forward-looking and experimental creations, and
2.1 Smart Mobility-based Customer H-Local Partner is a program through which Hyundai employees and citizens form a volunteer developing the project into an open platform for the future of Korean art.
Experience Innovation council and provide support for marginalized individuals who are in the blind spot of welfare
systems. Together with local residents of eight neighborhoods that have sisterhood ties with The “Hyundai Commission” is a part of our long-term partnership with Tate Modern in London,
2.2 Pursuing Eco-friendly Value our business site volunteer corps, we regularly carry out volunteer activities for the low-income which attracts more than five million visitors per year. The annual Hyundai Commission,
class beyond the reach of government assistance. In 2019, around 1,400 members carried which began in 2015 and continues for 10 years, gives artists an opportunity to create new
2.3 Creating a Sustainable out a wide range of activities closely connected to local communities, such as delivering food, work for Tate Modern’s Turbine Hall transforming public perceptions of contemporary art,
Supply Chain providing taxi support for the elderly, delivering breakfasts to children, offering support for local while addressing some of the questions our society faces. In 2019, Hyundai Motor and Tate
schools’ graduation ceremonies, supporting events for the elderly, and improving the residential announced the launch of the “Hyundai Tate Research Centre: Transnational”. Hyundai’s support
2.4 Building a Healthy Corporate environment. We will continue helping our employees and local communities to plan diverse for the centre has been confirmed until December 2024. The centre will explore multiple art
Culture activities for the underprivileged and contribute to facilitating exchanges among local residents. histories beyond Western Europe and North America and offer new perspectives on global art
histories by facilitating collective research and discussions around the world.
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of Local Communities Sponsorship of the Korean Archery Association Hyundai started a 10-year partnership with the Los Angeles County Museum of Art (LACMA)
- CSV Strategy Hyundai has been sponsoring the Korean Archery Association since 1985. In addition to in 2015 and continues to spearhead The Hyundai Project at LACMA. Through cutting-edge Art
- CSV Activities by Area providing financial support to ensure the stable operation of the Association, Hyundai supports + Technology exhibitions and the continuous support for the Art + Technology Lab, Hyundai
the presentation of prizes to the national squad that has achieved outstanding results at various is bringing art and technology together and inspires visitors through the convergence of
international tournaments including the Olympic Games. Our research institute’s technological technology and art. Also, through the support for Korean art exhibitions and research programs,
knowhow was used to develop a shooting machine that filters defective arrows. A precision we hope to share the unique beauty and traditions of Korean art with people around the world.
analytical technique was applied to identify irregularities in parts. By doing so, we are supporting As part of these efforts, in 2019 we hosted “Beyond Line: The Art of Korean Writing”, the first
Our System
archers in honing their skills and helping them improve their performance. In addition, we are overseas exhibition on Korean calligraphy designed to introduce the elegance and artistry
promoting the sport by sponsoring leading archery tournaments, including the Archery World throughout the history of Korean writing.
Cup and the World Archery Championships.
1 Sponsorship of the Korean Archery
Association
2 MMCA Hyundai Motor Series 2019:
Park Chan-kyong – Gathering; ©Chulki
Hong; and provided by MMCA
3 Hyundai Commission: Kara Walker
©Ben Fisher Photography
4 Installation photograph of the exhibition
Beyond Line: The Art of Korean Writing,
at the Los Angeles County Museum of
Art, June 16, 2019 – September 29,
2019, photo ©Museum Associates/
1 2 3 4
LACMA
066
1 Introduction
Global CSV Activities
Americas
Hope on Wheels
Hyundai Motor America (HMA) has been supporting the Hope on Wheels campaign with Hyundai dealers for 21 years since 1998. This campaign supports pediatric cancer research and aims CSR Performance
for a future in which no child has to suffer from cancer. It has expanded across the U.S., with total donations collected through the campaign amounting to USD 160 million (about KRW 196 (Unit: USD)
Our Commitment billion) as of the end of 2019.
20,281,277
20,178,196
20,021,413
Experience Innovation U.S. Brazil
CSV Activities CSV Activities
2.2 Pursuing Eco-friendly Value Major Activities Major Activities
by Area by Area
• Provide research funds to fight childhood cancer in the U.S (Hope on Wheels) • Provide traffic safety education to employees during “Yellow May”
Traffic safety
2.3 Creating a Sustainable Future • Donate toys to children with employee participation (Toys for Tots Campaign) (Month of Labor and Safety) and National Transportation Week
Supply Chain generation • Provide school supplies to students and volunteer to clean up schools in • Run a sports/soccer education program for children from low-income families
Montgomery (Hyundai Soccer Clinic)
Future
• Organize a fund-raising campaign by employees (2019 United Way Campaign) generation • Sponsor vocational education for youth from low-income families
Culture
Community • Run a food assistance program for the elderly in Montgomery (Meals on Wheels) (Social Opportunity Institute)
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ontributing to the Development • Sponsor the Montgomery Area Food Bank through food and financial support • Provide free dental services for the underprivileged via the “Sorriso Cidadang”,
meaning citizen smile, mobile dental clinic
2017
2018
2019
Community
- CSV Strategy Chile • Run a winter clothing campaign to donate winter clothes for children from
low-income families and senior citizens
- CSV Activities by Area CSV Activities
Major Activities
by Area
• Implement an educational project to provide vocational training in vehicle Puerto Rico
Traffic safety
maintenance and education on preserving the environment CSV Activities
Major Activities
Our System by Area
Future • Establish and operate training schools for vehicle repair and maintenance
generation (Hyundai Dream Center) Community • Run a community program to help families of low-income patients
1 Hope on Wheels (U.S.)

2 Hyundai Dream Center (Chile)
3 “Sorriso Cidadang” (citizen smile),
mobile dental clinic (Brazil)
4 Program to help families of
1 2 3 4
low-income patients (Puerto Rico)
067
1 Introduction
Asia-Pacific & Middle East & Africa
2 Sustainable Performance Dream Village Project

Hyundai Motor India (HMI)’s Dream Village project is aimed at improving the living conditions of villages nearby HMI’s manufacturing plant and helping local residents increase their CSR Performance
participation in the economy. The project is significant in that it seeks to revitalize the local economy through local residents’ active participation instead of offering them unilateral aid. (Unit: USD)
India Middle East & Africa
4,764,323
CSV Activities (Morocco, Mozambique, South Africa, Saudi Arabia, Egypt, Lebanon)
Mid- to Long-term Goals Major Activities
by Area CSV Activities
3,902,344
Major Activities
• Provide financial support for the planting and maintenance of tree farms by Area
Our Commitment Eco-friendly
(Go Green Activities) • Run a traffic safety program across the Middle East
3,343,664
2.1 Smart Mobility-based Customer Traffic safety • Provide traffic safety education and improve infrastructure in Anna Nagar • Increase the awareness on traffic safety, provide relevant trainings and
Traffic safety
Experience Innovation experiences, and build infrastructure
• Help local public schools resolve their convenience issues through recycled • Provide traffic safety training to female drivers (Saudi Arabia)
2.2 Pursuing Eco-friendly Value Future materials from the HMI Plant
throughout the Entire Value Chain generation • Run a program to foster unemployed young people to be safe drivers • Support underprivileged children and provide educational programs (Morocco)
Future
(Driving School) • Provide support for the improvement of the learning environment
generation
2.3 Creating a Sustainable (Mozambique)
Supply Chain • Help Kattrambakkam Village to be self-reliant in such areas as employment,
2017
2018
2019
livestock farming, health, education, the environment, and infrastructure • Provide support for the construction of a library and education for
Community Community
2.4 Building a Healthy Corporate (Dream Village Project 2.0) local communities (South Africa)
Culture
• Make donations to local communities for natural disaster relief and others
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ontributing to the Development Vietnam & Indonesia
of Local Communities CSV Activities
Major Activities
by Area
- CSV Strategy
• Run a program to help children from low-income families discover
- CSV Activities by Area Future their dreams (Vietnam)
generation
- Global CSV Activities • Offer a mobile library and after-school education programs (Indonesia)
Our System
Dream Village Project, HMI

1 Dream Village Project 2.0 (India)

2 Traffic safety training to female drivers
(Saudi Arabia)
3 Educational support (South Africa)
4 Helping children to discover their
1 2 3 4
dreams (Vietnam)
068
1 Introduction
Europe
2 Sustainable Performance Hyundai Safe Road Traffic Safety

Hyundai Motor CIS (HMCIS) has been running the Hyundai Safe Road Traffic Safety program across eight regions in Russia since 2017, with the goal of reducing road traffic accidents involving CSR Performance
children. In particular, HMCIS is running online and offline traffic safety education programs in which preschool children and their parents can participate together by using the Robocar Poli (Unit: USD)
Sustainability Management Traffic Safety campaign, a leading traffic safety campaign offered by Hyundai in Korea. As a result of these efforts, HMCIS won the Corporate Charity Leaders Award for the Federal Level of
Materiality Analysis Program.
1,703,200
Russia Spain
1,596,192
Our Commitment Major Activities Major Activities
1,338,128
by Area by Area
2.1 Smart Mobility-based Customer • Invite Hyundai customers and their facilities to join a traffic safety program • Install a machine in coastal parking lots to take plastic waste as a payment for
Traffic safety Eco-friendly
Experience Innovation (Hyundai Safe Road Traffic Safety) parking (Eco Parking)
2.2 Pursuing Eco-friendly Value • Run a cultural experience program for the next generation • Launch a social media campaign to prevent accidents involving cars and
Traffic safety
throughout the Entire Value Chain Future (Great Music for Young Generation) bicyclists (Hyundai Car Escort)
generation • Provide support for professional vocational training
Future
2.3 Creating a Sustainable (equipment, scholarships and HMMR volunteers) • Provide educational equipment for a charity project of Morocco
generation
Supply Chain
• Run employee volunteer programs and make donations Community • Plant 600 trees in Las Rozas
Community
2017
2018
2019
2.4 Building a Healthy Corporate (Hyundai Dream Way)
Culture
Kazakhstan & Uzbekistan
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CSV Activities
of Local Communities Major Activities
by Area
- CSV Strategy • H-Road Campaign across Eastern Europe (raising traffic safety awareness, traffic
Traffic safety
safety education, support for the underprivileged, etc.)
Our System
1 Hyundai Safe Road Traffic Safety

(Russia)
2 Hyundai Car Escort (Spain)
3 Eco Parking (Spain)
1 2 3 4
4 H-Road Campaign (Uzbekistan)
069
1 Introduction
China
2 Sustainable Performance Hyundai Green Zone (Anti-desertification project in Inner Mongolia)

In China, Hyundai has been implementing the Green Zone project for 12 years since 2008 to prevent the desertification of the main source of fine dust in China. Through this project, we were CSR Performance
able to restore 50,000 square meters in Chakanor, Inner Mongolia. Since 2014, we have been carrying out a project creating grasslands in the alkaline dry lake in the Baoshaodainao Nur and (Unit: USD)
Sustainability Management Haginor regions.
881,609
China
Major Activities Major Activities
by Area by Area
756,000
Our Commitment
• 2nd Hyundai Green Zone China Project: Prevent desertification and restore the • Dream Class: Provide books, educational equipment, sports goods, etc. to
2.1 Smart Mobility-based Customer Eco-friendly ecological environment by transforming dry lakes in Inner Mongolia into grassland elementary schools in deprived areas; and offer dream lectures in connection
Experience Innovation • Carry out volunteer activities for environmental protection Future with employee volunteers
generation • Tong Xin Yi: Build facilities for after-school activities, such as book-reading,
• Visiting Traffic Safety Campaign for Children: Raise children’s awareness of psychological consulting, art and music, for children left behind in rural areas,
372,181
Traffic safety traffic safety and develop their ability to cope with crisis through various aimed at child protection and juvenile delinquency prevention
2.3 Creating a Sustainable experiential training programs
• Offer employee volunteer services once every two months with such various
Supply Chain
themes as environmental protection and helping children and seniors
2017
2018
2019
2.4 Building a Healthy Corporate • Donate vehicles and engines for testing to an automotive engineering college
Community
Culture • Donate computers and multimedia classes
• Foster technical talents at 4S local stores in cooperation with an automotive
2.5 C
ontributing to the Development engineering college
- CSV Strategy
Our System
10 years of effort to combat the desertification in Inner Mongolia, China (Hyundai Green Zone)
1 2nd Hyundai Green Zone China Project

2 Visiting Traffic Safety Campaign for
Children
3 Dream Class
1 2 3 4
4 Tong Xin Yi
Contributing to the Area of Implementation 2019 Outcome & Mid- to Long-term Plan
Development of Eco-friendly IONIQ Forest

• Planted a cumulative total of 20,250 trees
‒ Amount of fine dust absorbed by the IONIQ Forest: 722,925 g/year
• Expand the project to create a forest within a classroom at elementary schools (from 2021)
Local Communities • Donated 6,030 air-purifying plants to elementary schools

(to 670 classrooms at 22 elementary schools, for 16,000 students)
• Improve mobility convenience for the underprivileged

In order to fulfill its values of innovation,
‒ Donated a cumulative total of 200 Happy Dream Cars, and operated the Happy Dream Bus on 477 occasions
communication, and growth, Hyundai seeks Mobility Happy Dream Car, Happy Dream Bus,
• Run the wheelchair and power assist sharing service for the disabled, free of charge
Innovation Wheel Share
to create social value in five main areas – ‒ No. of people used the power assist sharing service: Cumulative total of 297 for 2 years
eco-friendly, mobility innovation, traffic safety, ‒ No. of people rented a wheelchair: 1,055 persons, No. of days of rental: 7,566
future generation, and community. This will • Operated the Robocar Poli Playground, and the cumulative number of visitors • Cumulative number of visitors to the Robocar Poli Playground: 150 thousand (by 2022)
further amplify our positive social impacts, reached 94,000 • Contribute to sales increases in the mid- to long-term by operating social contribution
Traffic Safety Robocar Poli traffic safety campaign • Offered the Traffic Safety Class in connection with the Seoul Motor Show 2019, facilities within Hyundai’s branches
and will also enable us to achieve our mission and maximized its PR effects (indirect exposure to a cumulative number of 630 thousand • Continue to expand the global traffic safety campaigns for children both online and offline
of building a sustainable business ecosystem. visitors to the Show)
Future • Cumulative number of participants reached 144 with 30 participants per year
H-Social Creator
Generation • Hyundai Motor India Headquarters adopted the H-Social Creator in 2019, and implemented the program in 5 major cities in India – Delhi, Mumbai, Pune, Bengaluru, and Chennai
• Built infrastructure for a tour route, and operated eco-friendly electric shuttle buses • Improve the environment of the tourist spot to offer greater convenience to visitors
(some 1 million visitors will benefit per year) (by 2020)
Community Preserving the Petra World Heritage Site
• Build an eco-friendly tourism infrastructure, including 2 electric buses and charging facilities
(by 2020)
2019 Highlights
Winner of the CSR Development Index Evaluation in China for four consecutive years Presidential citation for Easy Move
Hyundai has ranked No. 1 in the automotive company category of the Corporate Social Responsibility (CSR) Development Easy Move Inc. is a social enterprise founded by Hyundai Motor Group, to support social enterprises in Korea, in June 2010
Index Evaluation, the most influential of such indexes in China for four consecutive years. The index is run by the CSR when the Korean market was dependent on expensive imported products. Easy Move became the first company in Korea to
Research Center of the China Academy of Social Sciences. In addition, Hyundai rose one place in the overall 2019 develop mobility-related technologies and manufacture equipment for the mobility-impaired. It has since made significant
corporate rankings to take 4th place. This strong performance is the result of the recognition we have earned from the social contributions by actively pushing ahead with localization and increasing the availability of mobility assistance
Chinese government as well as the Chinese public for the sincerity and effectiveness of our social contribution programs in equipment for people in vulnerable situations. In recognition of these achievements in improving mobility convenience for
China, which have now been running for more than a decade. the mobility-impaired, the company received a Presidential citation in 2019, just nine years after its establishment.
Our System
Corporate Governance, Hyundai strives to run its business in a responsible way based on an advanced
corporate governance system with the goal of implementing sustainability management
Ethical and Compliance Management, in a consistent and systematic manner. In addition, ethical business practices are
firmly embedded in our corporate culture. On this basis, along with comprehensive
Risk Management risk management, we are strengthening the foundation for sustainable growth.
072
1 Introduction
Corporate Governance
BOD-centered Management System Operation of the BOD

Materiality Analysis Hyundai has a Board of Directors (BOD) that provides checks and balances for the company The BOD meets on a quarterly basis, but it may be convened as and when a BOD resolution is
with the goal of ensuring its business growth and protecting the interests of shareholders and required. The BOD resolves matters set forth in the relevant laws and the Articles of Incorporation
other stakeholders. The BOD represents a diversity of perspectives and professional expertise and other important matters related to the company’s business performance. It also undertakes
as the company’s top decision-making body based on the Corporate Governance Charter that thorough evaluation and supervision activities. In particular, the independent directors are given
Our Commitment was established in 2016. Hyundai operates the BOD in accordance with transparent work- opportunities to participate in management through various practical monitoring and checking
handling standards and processes, and strives to maximize shareholder rights and interests as functions. The BOD is convened by the chair or another director appointed by the Board. With the
Our System well as corporate value based on its BOD-centered responsible management system. exception of cases otherwise prescribed in the relevant laws and regulations, a BOD resolution is
Corporate Governance passed by a majority vote by a majority of the entire membership.
Ethical and Compliance

Management
Composition of the BOD BOD Activities in 2019
Number of agenda items Number of agenda items
Number of BOD meetings
The BOD of Hyundai is composed of 11 directors – five internal and six independent directors for resolution for report
Risk Management
– in consideration of the efficiency of managing meetings and decision-making. The 9 27 16
independent directors form the majority of the BOD, and they have expertise in management,
accounting, law, and the automotive industry. Regarding the composition of the BOD, there is
3 Sustainability Factbook BOD Participation in 2019
no discrimination based on gender, race, religion, politics, or culture, and the Board members
are selected through a comprehensive review of independence, professionalism, and Participation rate of Participation rate of
Average participation rate
diversity. internal directors independent directors
Sustainability Magazine 90.9% 80% 100%
(As of March 31, 2020)
Classification Name Position/Major Career Date of Initial Appointment Note

Euisun Chung Executive Vice Chairman Mar. 12, 2010 Chairman of the Board, Recommendation Committee on Candidates for Outside Directors
Won Hee Lee President & CEO Mar. 11, 2016 Recommendation Committee on Candidates for Outside Directors, Compensation Committee
Internal
Albert Biermann President Mar. 22 2019 President of R&D Division
Directors
Eon Tae Ha President Mar. 16, 2018 President of Domestic Production
Sang-Hyun Kim Senior Vice President Mar. 19, 2020 Chief Finical Officer (CFO)
Advisor of Kim and Chang Law Group (Current) Corporate Governance & Communication Committee (Chairperson),
Dong Kyu Lee Mar. 13, 2015
Secretary General of Korea Fair Trade Commission (Former) Audit Committee
Chairman of e-Chon Tax Accounting Corp (Current) Audit Committee (Chairperson), Corporate Governance & Communication Committee,
Byung Kook Lee Mar. 13, 2015
Commissioner of Seoul Regional Tax Office (Former) Compensation Committee
Independent Legal Advisor of DR & AJU (Current) Recommendation Committee on Candidates for Outside Directors (Chairperson),
Eun Soo Choi Mar. 17, 2017
Directors President of Daejeon High Court and Patent Court (Former) Audit Committee, Corporate Governance & Communication Committee
Vice Chairman of UBS Wealth Management (Former) Compensation Committee (Chairperson),

Chi-Won Yoon Mar. 22, 2019
CEO of UBS Group Asia Pacific (Former) Audit Committee, Corporate Governance & Communication Committee
Eugene M. Ohr Partner of Capital International Inc. (Former) Mar. 22, 2019 Recommendation Committee on Candidates for Outside Directors
Sang-Seung Yi Professor of Economics, Seoul National University (Current) Mar. 22, 2019 Audit Committee, Recommendation Committee on Candidates for Outside Directors
073
1 Introduction
Independence of the BOD Evaluation and Compensation of the BOD
The BOD is composed of independent directors with the proven independence required A BOD evaluation is conducted by the independent directors at the end of each year, the
2 Sustainable Performance to check and balance the company’s operations. All members of our BOD must not only results of which are reflected in the BOD operations in order to increase efficiency. The
comply with the qualification requirements specified in the relevant laws and regulations director compensation limit is determined at the annual general meeting (AGM) after an
but also possess exemplary professional ethics, values and integrity in order to represent objective and transparent review by the Compensation Committee.
Sustainability Management stakeholders’ interests.
Materiality Analysis Director Compensation in 2019 (Unit: KRW million)
Independent directors must have deep expertise and experience in management, Internal
Mid- to Long-term Goals accounting, law, and other specialized fields. They have no major conflicts of interest with Classification CEO Board member Employee
director
the company and are thus in a position to make independent decisions. In order to prevent
Average compensation per person 1,268 98 1,056 96
Our Commitment any conflicts of interest, Hyundai prohibits its independent directors from performing any
transactions in its line of business or becoming a partner with unlimited liability or a director * Detailed information is available in our 2019 Business Report disclosed on the Data Analysis, Retrieval and
Our System in another company in the same industry, without the BOD’s prior approval. Transfer System of the Financial Supervisory Service
Ethical and Compliance Diversity and Expertise of the BOD BOD Sub-committees
Management
In order to strengthen the diversity and expertise of the BOD, the size of the BOD was The sub-committees under the BOD are the Audit Committee, the Recommendation
Risk Management increased from nine to eleven in March 2019, and the composition of the BOD was further Committee on Candidates for Outside Directors, the Corporate Governance & Communication
diversified by appointing directors with expertise in various fields such as global business, Committee, and the Compensation Committee. Roles and responsibilities are broken down
academia, R&D and finance. In particular, two of the directors appointed in March 2019 among the sub-committees to promote professional decision-making.
3 Sustainability Factbook were foreigners (internal director Albert Biermann and independent director Eugene M.
Ohr), and this contributed to the diversity of the BOD in terms of race and nationality.
Sustainability Magazine BOD Sub-committees
Classification Roles and responsibilities
• Evaluate the adequacy of overall internal control system operations

• Carry out auditing on the company’s operations and finances, such
Audit Committee
as approval on agenda items to be submitted to the AGM
Criteria for determining the independency of non-executive directors (5 independent directors)
• Communicate with external auditors about audit plans and results
(Disqualification of independence) of the financial statement
• Directors, executive directors and employees who are engaged in the regular business of Recommendation Committee on
• Recommend candidates for outside directors
the relevant company; or directors, auditors, executive directors and employees who have Candidates for Outside Directors
• Evaluate candidates in accordance with the Recommendation
engaged in the regular business of the relevant company within the latest two years (2 internal directors,
Committee on Candidates for Outside Directors Regulation
• The largest shareholder, his or her spouse, lineal ascendants and lineal descendants 3 independent directors)
• Directors, auditors, executive directors and employees of the corporation, in cases where the • Large scale internal transactions stipulated in the Monopoly
largest shareholder is a corporation Regulation and Fair Trade Act
• Spouse, lineal ascendants and lineal descendants of directors, auditors and executive • Major policies related to ethical management and social
directors Corporate Governance & contributions
• Directors, auditors, executive directors and employees of a parent company or a subsidiary Communication Committee • Establish and amend ethical regulations, including the Code of
company of the relevant company (4 independent directors) Ethics, and review the execution status
• Discuss the company’s management direction by collecting
• Directors, auditors, executive directors and employees of a corporation which has a
shareholder and stakeholder opinions on major management
significant interest in the relevant company, such as a business transactional relationship like
matters related to protecting shareholder rights and interests
a significant customer or supplier of the company
• Directors, auditors, executive directors and employees of another company where directors, Compensation Committee
• Discuss matters regarding the compensation system for internal
executive directors and employees of the relevant company serve as directors and executive (1 internal director,
directors and the compensation limit for registered directors
directors 2 independent directors)
074
1 Introduction
Audit Committee
Protecting Shareholder Rights
The Commercial Act requires that an audit committee must be composed of three or more Hyundai focuses on protecting shareholder rights in order to build a shareholder-centric corporate
2 Sustainable Performance directors, at least two-thirds of all directors should be independent directors, and have at least culture. To provide our shareholders with enough time to review agenda items, we notify them
one accounting and finance specialist. All five members of the Audit Committee at Hyundai of an AGM four weeks in advance, rather than the two weeks required by the Commercial Act.
are independent directors, above the legal limit, in order to ensure its objectivity independent We also notify shareholders, who own less than 1% of the company’s shares, about the holding
Sustainability Management from the BOD and the management when carrying out its auditing duties. Three of the Audit of an AGM. In addition, we disclose our audit report two weeks prior to an AGM, and make a
Materiality Analysis Committee members are accounting or finance experts. direct report at an AGM about our decisions concerning the appointment of external auditors for
transparent and prompt disclosure of information. In addition, we introduced a new shareholder-
Mid- to Long-term Goals friendly system in 2019, enabling general shareholders to recommend candidates for the position
Recommendation Committee on Candidates for Outside Directors of an independent director in charge of shareholder rights protection in a bid to expand our
Our Commitment The Recommendation Committee on Candidates for Outside Directors was established to shareholders’ interests and strengthen the transparency of our corporate management.
recommend candidates for outside directors through objective and fair evaluation to
Our System shareholdersʼ meetings. In accordance with a law stipulating that the independent directors In approving financial statements and making decisions on dividend payouts, we have our
account for a majority of the independent director candidate nomination committee, we have shareholders decide at an AGM, instead of delegating the responsibility to the BOD. We also
made our Recommendation Committee on Candidates for Outside Directors consist of two boost our transparency by disclosing all matters related to the BOD meetings and executive
Ethical and Compliance internal directors and three independent directors. The Committee has the right to recommend compensation in our business reports. Furthermore, shareholder information, such as stock
Management independent directors to the annual general meeting (AGM), and the candidate for independent issuance, treasury stock, stock distribution, and dividends paid in the past five years, is available
directors will be presented as the final candidate to the AGM after recommendation by the on our website.
Risk Management committee and deliberation by the board of directors.
Amendment of the Corporate Governance Charter

3 Sustainability Factbook Compensation Committee Classification Details
Established in 2019, the Compensation Committee is composed of one executive director and
We aim to proactively respond to the rapidly changing
two independent directors. The independent directors form the majority of the Committee, and Mid- to long-term automotive market through relentless challenge and innovation,
Sustainability Magazine it is also chaired by an independent director, ensuring its independence from the management. strategic direction and to create new customer values, with the goal of becoming
Preamble a global leader.
We contribute to enhancing the sustainability of the company

Corporate Governance & Communication Committee Reflecting ESG
and society by proactively improving ESG in a wide range of
improvement demands
In April 2015, Hyundai launched the Corporate Governance & Communication Committee areas.
consisting entirely of independent directors to enhance its corporate transparency and The company reflects the diversity factors such as gender, age,
protect shareholders’ rights. The committee meetings are held prior to BOD meetings for nationality, race, religion, education level, and disability; and
the purpose of boosting the transparency of internal transactions and promoting ethical directors should be able to contribute to improving corporate
Reflecting the value and enhancing shareholder rights.
management practices as well as protecting shareholders’ rights. The Committee carries Appointment
enhancement of BOD
of directors
out various activities to expand shareholder rights by enhancing the transparency of BOD diversity and expertise The company strives to increase the diversity of the BOD
operations. The committee members attend domestic investor discussions and non-deal in order to flexibly respond to changes in the business
environment based on the directors’ diverse viewpoints and
roadshows (NDRs) for overseas investors, in order to serve as a communication channel experiences.
between the BOD and shareholders while improving shareholder value. It also regularly
holds seminars on various governance issues, such as responsible investment, to increase The company conducts the Board assessment on a regular
Reflecting evaluation and basis to improve the Board efficiency.
our directors’ understanding and expertise on governance-related issues. Evaluation and
the establishment of the The BOD may delegate matters related to compensation,
remuneration
Compensation Committee such as the compensation limit of registered directors, to the
The Committee is promoting various governance improvement activities with the goal
Compensation Committee.
of improving shareholder value. In 2019, we launched the Compensation Committee to
ensure objectivity and transparency in the process of determining the remuneration of Corporate Governance
& Communication
our registered directors. As we upgraded our Governance Charter in October 2019, the Reflected the changes made to the appointment of the
Changes to Committee Regulations,
Corporate Governance & Communication Committee and
principles for the appointment and evaluation of directors were strengthened, reflecting regulations and regulations on
external auditors.
the improvement of governance and changes in related laws and regulations. We also selecting external auditor
selection, etc.
introduced an electronic voting system to facilitate our shareholders' exercise of their voting
rights, and used it for the first time at the AGM held in March 2020.
075
1 Introduction
Ethical and Compliance Management
Ethical Management Compliance Management

Ethics Charter Compliance Officer
Hyundai enacted the Ethics Charter, the Employees’ Code of Conduct, and the Guidelines Hyundai has established a compliance officer system whereby a compliance officer takes CP Implementation Process
for Ethical Business Conduct in 2001, thereby establishing standards for our employees to responsibility for controlling compliance in each department with the aim of ensuring
Our Commitment make ethical decisions in the workplace. The Ethics Charter provides the basic principles company-wide compliance with all applicable laws. In 2017, we designated all department
of Hyundai’s ethical management practices and activities, while the Employees’ Code heads as the compliance officers of their respective departments, and tasked them Planning
Our System of Conduct is a code of practice enacted to realize the spirit of the Ethics Charter. The with ensuring that all their subordinates are aware of any changes in the corporate legal
• CEO announces his
Guidelines for Ethical Business Conduct stipulate the specific procedures and contents that environment so as to perform their duties in compliance with relevant laws. commitment to fair trade
apply to all of Hyundai employees to put ethics into practice. compliance
Ethical and Compliance (January & July)
Management Compliance self-assessment • Operate the CP Council
Cyber Audit Office Hyundai conducts compliance self-assessments by risk area twice a year in order to diagnose
Risk Management
Hyundai operates the Cyber Audit Office in order to establish and realize transparent and prevent legal risks on its own. After the assessment, we provide comment sheets so that
management. The Office receives reports on, and manages, unfair trade, bribery, our employees can identify their job risks and perform self-improvement activities. In addition
misfeasance, solicitation, improper practices, and violations of the Employees’ Code of to the existing assessment areas, including anti-corruption, personal information protection, Increasing employees’
3 Sustainability Factbook awareness
Conduct via the online channel. and trade secret protection, we conducted additional assessment in such areas as the EU
GDPR and intellectual property in 2019, and we will expand the area to include fair trade in • Provide employees with
2020. education on Fair Trade
Sustainability Magazine Act, including field training
Compliance Program and online training
Compliance guidelines • Distribute newsletters on
Implementing the compliance program fair trade
In order to prevent legal risks, Hyundai published and distributed compliance guidelines
Fair and transparent management at Hyundai derives from our CEO’s commitment to on the key content of the relevant laws and regulations, as well as response measures, that
fair trade, as set out in the declarations made in the first and second half of every year. its employees must be aware of. We have published compliance guidelines in the areas of
This strong commitment to fair trade is communicated to all of our staff, and compliance commercial law at home and abroad, fair trade law, criminal law, personnel management and Report of results
guidelines are implemented throughout our business. In addition, Hyundai is establishing labor affairs, and copyrights. In 2019, we also produced summarized the guidelines to help
• Report CP results and
a fair trade mindset by providing extensive, company-wide training on fair trade, and by our employees better utilize them at work.
plans to the BOD
publishing regular newsletters on this issue. Results of the compliance program (CP) and
next year’s plans for CP are reported to the BOD every year, to ensure that compliance with
fair trade is instituted at every business site. Compliance trainings
Hyundai provides compliance training to its employees with the goal of strengthening their
compliance capabilities and fostering a compliance culture. We provide compliance training
Providing CP education to newly hired employees, newly promoted employees, and teams demanding an education
Hyundai runs CP education programs to improve employee awareness of the CP. We provide session on a regular basis or on request. In addition, we run an annual online training on
training on fair trade to newly hired employees when they join the company, in order to ensure anti-corruption for all our employees. Furthermore, we regularly publish a company-wide
that they are fully aware of the importance of fair trade. In addition, new executives and staff compliance newsletter that covers legislative trends in the automobile industry, legal risks,
whose work is closely related to fair trade receive additional compliance training every year. and internal ethical regulations.
We also publish monthly newsletters on fair trade, so that our employees are properly kept
abreast on fair trade, and a fair trade mindset is established throughout the company.
076
1 Introduction
Risk Management
Global Risk Management System Tax Strategy

Materiality Analysis Auto industry regulations are rapidly changing, and responding to this trend has become Hyundai is fully aware that tax compliance and tax risk management are crucial to serving our
an important priority for Hyundai. Accordingly, since 2014, we instituted an organization customer’s interests, maximizing shareholder returns, and contributing to government finances,
managing all business-associated risks under the auspices of the Business Strategy Planning and that it is also a prerequisite for sustainable management. We are therefore striving to
Division and risk management teams at all of our overseas business sites. These risk comply with our duties as a faithful taxpayer in response to the fair taxation principles of the tax
Our Commitment management units are structured to promptly respond to any risks occurring in the sphere authorities, while establishing a cooperative relationship with the office based on mutual trust.
of their respective business operations. In addition, Hyundai monitors all risk factors in all of
Our System our business operations and regions on a daily basis; and for each of those that can develop
into a clear threat, we set up a contingency plan by evaluating its potential impact on our Tax risk management
business using a variety of scenarios. A particular focus was placed on identifying reasons The core of our tax risk management is “strict compliance with the law”. We maintain a transparent
Ethical and Compliance for, and backgrounds of, the major risk factors in question. relationship with the tax authorities, and provide them with all the evidence for verification they
Management request. As a global company, we recognize the differences between the tax laws of each country
and strive to prevent tax risks in advance. We do not own any subsidiary specifically established
Risk Management Management of emerging risks for the purpose of tax avoidance, nor do we transfer our revenues to any of our overseas
Hyundai is aware of potential risks associated with our automobile and related operations, subsidiaries located in tax haven countries. We also recognize the double-taxation risks arising
and we are making efforts to proactively respond to such risks. from competition between tax authorities in our transfer pricing, and consequently conduct
transactions within “the normal price range” as a rule in order to address this issue.
Sustainability Magazine Contributing to the local community through taxes

We make significant contributions to the economic development of local communities as a
major taxpayer, investor, and job creator in many parts of the world. We make sure that all our
subsidiaries around the globe pay an income tax and other taxes designed to increase the
revenues of the tax authorities, such as the value-added tax (VAT) and withholding tax.
Cases of Responding to Emerging Risks
Potential change in automobile demands caused by older drivers ceasing driving Risk of accidents due to the hacking of vehicles, including autonomous vehicles
Risk Context As the population ages, the number of older drivers is increasing and traffic accidents Risk Context Technologies applied to vehicles are becoming complex and diverse, including
involving these drivers are becoming social issues. As a result, countries around the world are discussing autonomous driving and state-of-the-art seamless technologies. This has also created the possibility of a
how to deal with this problem, including the voluntary suspension of the driving licenses of older drivers, or new type of vehicle accidents. In the event of injuries or deaths caused by hacking, there would be major
stricter age-based controls over licenses. This could reduce car ownership by senior citizens, which in turn recalls following investigations by authorities, damages and lawsuits, negative impact on the corporate
could potentially lead to a decline in sales. image, as well as the formation and spread of negative public opinion, which in turn could reduce vehicle
sales. In addition, if vulnerabilities are exposed to a hacking attack, the company could become the target
of cyber-security attacks from hacker groups.
Hyundai’s Approach Hyundai is addressing this issue in two ways. Firstly, we are applying the advanced Hyundai’s Approach In order to proactively respond to cyber threats, Hyundai has set up a task force
driver assistance system (ADAS) to models that are popular with older customers so that, even if the driver’s comprised of white hackers who can identify and improve vulnerabilities in security in advance. We have
judgment is not appropriate, the vehicle itself will be able to control risk factors. Secondly, we have made the also strengthened our security infrastructure by investing in Upstream Security, an innovative global
functions in our vehicles easy to use by simplifying the human-machine interface (HMI), taking into account mobility startup. In addition, we have secured the V2X technology which securely encrypts communications
older drivers’ limited ability to use complex functions. Hyundai will continue to respond proactively to changes between vehicles, and between vehicles and the telecommunications infrastructure. In order to prevent the
in the driving demographic by contributing to reducing the number of accidents involving older drivers, while hacking of connected cars, we are conducting security drills, including smart car penetration testing on the
also enabling them to continue to own a car and drive by helping older drivers feel more confident. infotainment system, communications networks, controller, and others.
078
1 Introduction
Global Network
Hyundai operates production plants, technology research institutes, and

3 Sustainability Factbook design centers in major overseas markets. We sell vehicles across the
globe, with around 6,200 sales networks in approximately 200 countries.
42 43 44
Global Network 52
36 45
50 30 39 33 8 53
Business Performance 41 37 35 31 32 9
48 38 47 49 12 10 60
Facts & Figures 40 34 14 17 18 61
46 13
11 15 59 51
Stakeholder Engagement 54
16 58
27 28
GRI Index 29 57
21 56
25 2 4
Independent Assurance 19 20 1
3
Statement 6 55
7 5
About This Report
22 23 24
26
Asia & Pacific Europe North America, Central & South America
1 Namyang Technology Research Center / 19 Hyundai Motor India Headquarters 30 Hyundai Motor Europe Headquarters 51 Hyundai Motor North America Headquarters
Namyang Design Center 20 Hyundai Motor India Engineering Center 31 Hyundai Motor Manufacturing Czech 52 Hyundai Auto Canada Corp.
2 Korea Central Research Institute 21 Hyundai Thanh Cong Commercial Vehicle 32 Hyundai Motor Czech 53 Hyundai·Kia America Technical Center, Inc.
3 Environmental Technology Center Joint Stock Company 33 Hyundai Motorsport Gmbh 54 Hyundai Motor Manufacturing Alabama
4 Namyang Technology Research Center 22 Hyundai Motor Asia-Pacific Headquarters 34 Hyundai Motor Company Italy 55 Hyundai Motor Central &
Proving Ground 23 Hyundai Motor Manufacturing Indonesia 35 Hyundai Motor Deutschland Gmbh South America Headquarters
5 Hyundai Motor Ulsan Plant 24 Hyundai Motors Indonesia 36 Hyundai Motor United Kingdom 56 Hyundai Motor De Mexico
6 Hyundai Motor Asan Plant 25 Hyundai Thanh Cong Manufacturing Vietnam 37 Hyundai Motor France 57 Hyundai De Mexico
7 Hyundai Motor Jeonju Plant 26 Hyundai Motor Company Australia 38 Hyundai Motor Europe Technical Center 58 Hyundai Translead
8 Hyundai Motor Group(China) Ltd. 39 Hyundai Motor Poland 59 Hyundai Motor America
9 Beijing Hyundai Motor Company 40 Hyundai Motor Espana 60 Commercial Vehicle Latin America &
10 Hyundai Motor Technology And Middle East & Africa Caribbean Regional Headquarter
41 Hyundai Motor Netherlands B.V.
Engineering Center(China), Ltd. 61 Hyundai Motor Company Washington Office
27 Hyundai Motor M.East & Africa Headquarters 42 Hyundai Motor Russia & Cis Headquarters
11 Hyundai Truck & Bus (China)
28 Commercial Vehicle Africa & 43 Hyundai Motor Commonwealth Of
12 Beijing Zingxianmotor Safeguard Service Co Middle East Regional Headquarter Independent States
13 Hyundai Top Selection Used Car Co 29 Africa & Middle East Quality Center 44 Hyundai Motor Manufacturing Russia
14 Hyundai Motor Beijing Office 45 Hyundai Truck & Bus Russia
15 Hyundai Motor Tooling Shandong Co., Ltd. 46 Hyundai Assan Otomotiv Sanayi Ve Ticaret A.S.
16 Genesis Motor China 47 Genesis Motor Europe
17 Hyunda Motor Japan R&D Center 48 Hyundai Hydrogen Mobility
18 Hyundai Motor Japan 49 Europe Quality Center (As of June 2020)
50 Hyundai Motor Company Brussels Office
079
1 Introduction
Business Performance
Performance Overview Global Sales in 2019

3 Sustainability Factbook (Unit: Vehicle)
The prolonged US-China trade dispute in 2019 resulted in a slowdown in Russia
global trade, which in turn led to lower investments and consumption in
Global Network advanced economies and sluggish exports by developing nations. This had a 198,983 China
North America
marked negative impact on the global automobile market – global demand
had risen gradually since the financial crisis of 2008, but in 2019 demand
Europe
703,785 890,346
Facts & Figures fell significantly. In particular, there were sharp decreases in demand from 571,601 Korea
major emerging economies, such as China, India, and the Middle East,
Stakeholder Engagement which are vital markets for Hyundai. Additionally, stricter environmental Africa & Middle East
741,842
GRI Index
regulations and safety laws led to increases in manufacturing and quality
control costs, which created a challenging business environment. 312,606 India
Independent Assurance
Statement Nevertheless, Hyundai was able to achieve record high revenues of KRW 515,019
About This Report 100 trillion and improved its operating income by 49% year-on-year by Overseas commercial vehicles, etc.
optimizing its product sales mix and reducing incentives. This was possible
thanks to strong sales in the U.S. and Korea, Hyundai’s major markets. We Asia-Pacific 36,119 Central & South America
ranked No. 1 in sales of FCEVs in 2019, and also saw significant achievements
across the eco-friendly, premium, and high-performance vehicle sectors, 205,772 300,078
which are areas of particular focus for the company.
Market Condition and
Global Sales in 2019 Business Review in Korea
(Unit: Vehicle)
Korea 741,842
Market Condition
Passenger vehicles 714,400
Despite strong sales of SUVs in 2019, sluggish sales of passenger vehicles Hyundai is fully committed to making its operations more sustainable, and
Commercial vehicles 27,442 led to a 0.9% year-on-year decline in the total number of vehicles sold in to the creation of environmental and social value. To this end, we focus on
Overseas 3,734,309 Korea, down to 1,539,000 vehicles (excluding imports). Sales of small SUVs developing eco-friendly cars, building a low-carbon society, and growing
and large SUVs increased by 18.9% and 171.5% respectively, but sales of together with our suppliers. We are also contributing to society through
North America (U.S., Canada, Mexico) 890,346 compact passenger vehicles and semi-medium vehicles decreased by 9.5% a wide range of activities that are aligned with the five major CSV areas
India 515,019 and 18.9% respectively, which led to the decrease in overall sales. of Hyundai – eco-friendliness, mobility innovation, traffic safety, future
generations, and community.
Europe (Western, Eastern, Turkey) 571,601
Russia (Russia, CIS) 198,983 Business Review
Central & South America (Brazil, Other Latin American countries) 300,078 In 2019, Hyundai’s sales volume in Korea rose by 2.9% year-on-year
to 742,000 units (retail basis), with a market share of 48.2% (excluding
Africa & Middle East 312,606
imports). The new Palisade and Grandeur led the growth by recording sales Sales in Korea Market Share in Korea
Asia-Pacific (Other countries in Asia-Pacific region, Australia) 205,772 of 52,000 and 103,000 units respectively. *Excluding imports
703,785
742,000 48.2
China
In the face of intense competition, Hyundai remains focused on offering a high
Overseas commercial vehicles, etc. 36,119
level of customer satisfaction through improvements in products and services,
4,476,151
as well as competitive pricing. In 2019, we strengthened the line-up of SUVs units %
Total by launching the Venue, a small SUV that targets young, single millennials.
080
1 Introduction
Market Condition and Business Review by Region
US Market Asian Market European Market
Market Condition Market Condition Market Condition
Total automobile sales in the U.S. decreased in 2019 due to a fleet decrease In China, demand fell across all segments due to slower economic growth, Total sales in Europe in 2019 were 16,206,000 units, a year-on-year increase
3 Sustainability Factbook for profitability improvements and reduction of passenger area by US the prolonged US-China trade conflict, and reduced subsidies for new eco- of 1.2%. Sales rose in Germany, France, and Italy, but fell slightly in other
automakers. Although sales of light commercial vehicles grew by 2.6% friendly vehicles. The total sales volume declined 9.6% year-on-year to major economies, including the UK and Spain.
year-on-year thanks to the popularity of SUVs and pickup trucks, a 10.1% 20,804,000 units, with SUV sales down 5.7% and the others down by 12.4%.
Global Network fall in sales of passenger vehicles due to sluggish demand across all classes
led to an overall 1.3% decrease in total sales, down to 17,047,000 units. In India, demand fell due to a liquidity crunch in the financial sector and Business Review
Business Performance sluggish agricultural growth, which in turn caused downswings in private In 2019, Hyundai’s sales volume in Europe fell by 0.3% year-on-year to
Facts & Figures consumption and investments. The total sales volume declined by 12.4% 539,000 units (on a retail basis), recording a market share of 3.3%. Sales of
Business Review year-on-year to 2,954,000 units. Major Indian automakers Maruti Suzuki the Kona and Santa Fe increased, but other key models, including the i20,
Stakeholder Engagement In 2019, Hyundai sold 710,000 units (on a retail basis) in the U.S., up and Mahindra saw year-on-year declines of 14.2% and 4.3% respectively. i30, and Tucson, recorded declining sales.
4.7% compared to the previous year, recording a 4.2% market share for
GRI Index
the year. Sales of the Kona and Santa Fe increased by 55.7% and 178.2% In order to achieve profitable growth, Hyundai is focusing on qualitative
Independent Assurance respectively, and the new Palisade made a strong contribution by selling Business Review growth through quality improvements and greater operational efficiency,
Statement 24,000 units. In 2019, Hyundai’s sales volume in China fell by 17.7% year-on-year to rather than simply boosting sales volumes through excessive incentives.
650,000 units (on a wholesale basis), recording a market share of 3.1%. As a result, Hyundai has been able to demonstrate its superior technology
About This Report
In the 2019 Initial Quality Study (IQS) from J.D. Power, the global marketing Despite the launch of new models, including the new Santa Fe and ix25, and design even in the demanding European market. The IONIQ won 2019
information company, the Genesis ranked No. 1 in both the premium there was a noticeable decline in sales of the Mistra and Tucson. However, Hybrid Car of the Year from WhatCar?, the most prestigious automobile
brand category and in the overall brand category. Hyundai ranked second thanks to our efforts to improve customer satisfaction, Hyundai ranked magazine in the UK, at the same time as the i30 N won Best Hot Hatch for
in the general brand category and third in the overall brand category. In third among 47 automobile brands in the 2019 China IQS from J.D. Power, £22,000-£27,000 from the same publication. ABC, the influential Spanish
addition, the Genesis G70 ranked No. 1 in the compact premium segment, with the Lafesta ranking first in the mid-size vehicle segment. Hyundai also newspaper, chose the Kona as its Best Car of the Year 2019. In addition,
and the Santa Fe took first place in the mid-sized SUV segment, reflecting ranked first for maintenance satisfaction in the 2019 China Automobile Hyundai became the first Korean automobile company to win Brand of the
the recognition that the Genesis and Hyundai have earned for their quality. Customer Satisfaction Index (CACSI) organized by the China Association Year at the Red Dot Award, which is one of the three most highly respected
The Genesis G70 and Hyundai Kona won the 2019 North American Car, for Quality. In order to respond to the downturn in the Chinese automobile international design competitions in the world. Brand of the Year is the
Utility and Truck of the Year (NACTOY) awards in the passenger and utility market, Hyundai is striving to gain growth momentum and strengthen its Red Dot Award’s top honor, with only one brand being chosen every year
categories respectively. These improved quality, satisfaction, and other brand competitiveness by leveraging the launch of new models. for having demonstrated the most outstanding creativity and the most
product competitiveness have led to the increased value of the brand. innovative design in the design category for the year, after putting together
In 2019, Hyundai ranked 36th in the top 100 Best Global Brands from In 2019, Hyundai’s sales volume in India fell by 7.2% year-on-year to the results of awards in three categories. Hyundai become only the second
Interbrand, a global brand consultant. In the 2020 Best Buy Award from 510,000 units (on a wholesale basis), recording a market share of 17.3%. Korean company to win this award, and the first Korean automobile
Kelley Blue Book, the biggest provider of automobile price information in Despite decreased sales, our market share rose slightly as we outperformed company.
the U.S., the Santa Fe, Kona, and Kona Electric were named in the midsize the overall market. In addition, we earned recognition for our outstanding
SUV (2-row), subcompact SUV, and electric car categories respectively. performance in the Indian market, earning first place in the J.D. Power 2019
India Sales Satisfaction Index (Mass Market) Study.
Sales in the U.S. Market Share in the U.S. Sales in China Sales in India Sales in Europe Market Share in Europe
710,000 4.2 650,000 510,000 539,000 3.3

units % units units units %
081
1 Introduction
Facts & Figures
Corporate Profile (Production and Sales)

Classification Unit 2017 2018 2019 Note
Assets KRW billion 178,199.5 180,655.8 194,512.2 Consolidated figures basis

Global Network General Information Sales KRW billion 96,376.1 96,812.6 105,746.4 Consolidated figures basis
Business Performance Production Vehicle 4,506,996 4,635,356 4,484,805
Facts & Figures Elantra (Avante) Vehicle 669,663 702,497 458,881 As of the end of the year
Stakeholder Engagement Tucson Vehicle 644,598 577,662 492,165 As of the end of the year
GRI Index Global Best-selling Models Accent Vehicle 438,793 362,315 304,748 As of the end of the year
Independent Assurance Sonata Vehicle 430,752 315,507 256,433 As of the end of the year
Statement
Santa Fe Vehicle 373,032 282,682 211,902 As of the end of the year
About This Report
Korea Vehicle 1,651,718 1,747,837 1,783,617
U.S. Vehicle 328,400 322,500 336,000

China Vehicle 800,000 794,000 662,590
India Vehicle 678,017 713,108 682,100
Czech Republic Vehicle 356,700 340,300 309,500
Turkey Vehicle 227,000 203,000 175,000
Russia Vehicle 233,500 246,500 245,000

Global Production1)
Brazil Vehicle 182,773 192,855 206,038
China (Commercial) Vehicle 27,941 12,195 5,515
Vietnam Vehicle 16,617 56,028 71,138 Transformed from consignment (commercial) to venture investment in 2017
Consignment (Commercial) Vehicle 4,330 5,200 3,770
Vietnam (Commercial) Vehicle - 1,653 3,835 Transformed from consignment (commercial) to venture investment in 2018
Russia (Commercial) Vehicle - 180 702 Transformed from consignment (commercial) to venture investment in 2018
Total Vehicle 4,506,996 4,635,356 4,484,805
Korea Vehicle 688,939 721,078 741,842
Global Sales Overseas Vehicle 3,817,336 3,868,121 3,734,309
Total Vehicle 4,506,275 4,589,199 4,476,151
1)
Including the performance of joint ventures in addition to the production performance of the business report
082
1 Introduction
Corporate Profile (Employees)

Korea Person 68,876 69,755 70,421 As of the last business day; and based on the number of directly employed staff
Global Network Overseas Person 53,341 54,166 50,716
Business Performance Number of Employees
Ratio of employees working
% 43.6% 43.7% 41.9%
overseas
Facts & Figures
Total Person 122,217 123,921 121,137
Stakeholder Engagement
Korea Person 68,876 69,755 70,421
GRI Index
North America Person 10,942 11,332 11,191
Statement Europe Person 9,955 9,745 9,951
Number of Employees
About This Report China Person 19,100 18,132 14,638
by Region
India Person 9,318 9,323 9,353
Sustainability Magazine Others Person 4,026 5,634 5,583
Total Person 122,217 123,921 121,137
Management Person 466 442 450
Research fellow Person 22 22 24
Research Person 10,565 10,889 11,232
Office work Person 12,659 12,512 12,559

Number of Employees
by Duty in Korea Technical/Production/
Person 35,669 35,983 36,295
Maintenance
Sales Person 6,190 6,095 5,968
Others Person 3,305 3,812 3,893 Advisor, specially appointed staff for special duties, temporary staff, etc.
Total Person 68,876 69,755 70,421
Korea Person 68,876 69,755 70,421
– Male Person 65,471 66,178 66,668
Number of Employees – Female Person 3,405 3,577 3,753

by Gender
Overseas Person 53,341 54,166 50,716
– Male Person 47,737 48,271 44,592
– Female Person 5,604 5,895 6,124

083
1 Introduction
Annual Performance
Total assets KRW billion 178,199 180,656 194,512

Statements of
Global Network financial position Total liabilities KRW billion 103,442 106,760 118,146
(Consolidated)
Business Performance Total equity KRW billion 74,757 73,896 76,366
Facts & Figures Total assets KRW billion 70,131 69,743 74,157
Statements of
Stakeholder Engagement financial position Total liabilities KRW billion 15,906 17,167 20,238
(Separate)
GRI Index Total equity KRW billion 54,224 52,576 53,919
Independent Assurance Sales KRW billion 96,376 96,813 105,746

Statement
Operating profit KRW billion 4,575 2,422 3,606
About This Report Statements
of income Net profit KRW billion 4,546 1,645 3,186 Including non-controlling interests
(Consolidated)
Based on Bloomberg
Sustainability Magazine Financial EBITDA KRW billion 8,104 6,184 7,437 (sum of operating profit, depreciation of tangible assets, depreciation of real estate
Highlights held for investment, and depreciation of intangible assets)
Sales KRW billion 41,605 43,160 49,156
Operating profit KRW billion 2,163 -59 1,580

Statements
of income Net profit KRW billion 2,551 415 2,832
(Separate)
Based on Bloomberg
EBITDA KRW billion 4,467 2,447 4,061 (sum of operating profit, depreciation of tangible assets, depreciation of real estate
held for investment, and depreciation of intangible assets)
Operating profit margin % 4.7% 2.5% 3.4%

Profitability ratio
(Consolidated)
Net profit margin % 4.7% 1.7% 3.0%
Operating profit margin % 5.2% -0.1% 3.2%

Profitability ratio
(Separate)
Net profit margin % 6.1% 1.0% 5.8%
084
1 Introduction
Our Commitment 01. Smart Mobility-based Customer Experience Innovation

U.S. Vehicle Dependability Study
Ranking (Score) 3rd (133) 3rd (124) 5th (124) Based on non-premium brand (17MY performance results as of Feb. 2020)
(Hyundai)
Global Network
Quality Index
Business Performance (based on the survey conducted U.S. Initial Quality Study (Hyundai) Ranking (Score) 4th (88) 2nd (74) 2nd (71) Based on non-premium brand
by J.D. Power and Associates)
Facts & Figures Based on premium brand
U.S. Initial Quality Study (Genesis) Ranking (Score) 1st (77) 1st (68) 1st (63)
(began to participate in the premium brand survey in 2017)
Hyundai Customer Satisfaction
% 77.9 79.1 78.8
GRI Index Index (HCSI)
Independent Assurance External evaluation –

National Customer Satisfaction Ranking 1st place at all segments 1st place at all segments 1st place at all segments Compact, semi-medium, medium, semi-large, large, RV
Statement
Index (NCSI)
Customer Satisfaction Survey
About This Report External evaluation –
Korean Standard-Quality Ranking 1st place at all segments 1st place at all segments 1st place at all segments Semi-medium, medium, RV, after-sales service
Excellence Index (KS-QEI)
External evaluation – Korean
Sustainability Magazine Ranking 1st place at all segments 1st place at all segments 1st place at all segments Passenger vehicle, RV
Customer Satisfaction Index (KCSI)
Our Commitment 02. Pursuing Eco-friendly Value throughout the Entire Value Chain
LNG MWh 3,916,676 4,059,610 3,716,638
Electricity MWh 3,588,876 3,661,121 3,616,488
Diesel, Kerosene, Gasoline MWh 180,747 153,458 168,576
Energy Consumption Liquefied fuel MWh 1,673 1,751 956
Steam, Heat MWh 59,108 71,581 104,571
Gaseous fuel MWh 894 1,929 1,173
Total MWh 7,747,974 7,949,450 7,678,736
Energy consumption
Energy Intensity MWh/Vehicle 1.706 1.700 1.675
in producing one vehicle
Scope 1 tCO2e 852,547 874,997 808,139
Greenhouse Gas (GHG) Scope 2 tCO2e 1,882,674 1,936,902 1,900,954

Emissions Scope 3 tCO2e 7,051,724 5,582,405 7,017,300
Total tCO2e 9,786,945 8,394,304 9,726,393

085
1 Introduction
GHG emissions
GHG Emission Intensity tCO2e/ Vehicle 2.172 1.811 2.167
Global Network in producing one vehicle
Business Performance Scope 1 tCO2e 30,274 22,450 -66,858
Facts & Figures Scope 2 tCO2e -149,980 54,229 -35,948

Year-on-year Change of
GHG Emissions
Stakeholder Engagement Scope 3 tCO2e -157,713 -1,469,319 1,434,895
GRI Index Total change tCO2e -277,419 -1,392,641 1,332,089
Independent Assurance Steel (amounts used) Ton 1,148,388 1,173,455 968,630

Statement
Steel (scrap) Ton 477,680 453,788 430,389
About This Report Raw Materials
Aluminum (amounts used) Ton 117,252 108,399 101,966
Aluminum (scrap) Ton 30,132 27,841 27,661

Withdrawal Ton 22,823,553 23,140,226 22,487,823
Water Consumption Consumption Ton 19,559,402 21,196,757 19,948,519
Discharge Ton 9,607,722 10,325,656 9,560,559
Total Ton 1,062 1,296 1,199

Consumption of Refrigerant
– Korea Ton 3 9 14
(HFC, R135a, etc.)
– Overseas Ton 1,059 1,287 1,185
Total Ton 8,398 7,719 9,264
VOC Emissions – Korea Ton 6,292 6,707 7,397
– Overseas Ton 2,106 1,012 1,867
Total Ton 1,256 1,065 1,405
– CO (by type) Ton 384 276 537
– SOx (by type) Ton 28 17 14
Air Emissions – NOx (by type) Ton 399 327 492
– PM (by type) Ton 445 444 361
– Korea (by region) Ton 392 419 733
– Overseas (by region) Ton 864 646 672

086
1 Introduction
Total kg 649,860 652,757 435,471

Global Network
– COD (by type) kg 174,193 198,383 236,217
– BOD (by type) kg 24,124 22,743 25,546
Facts & Figures
– SS (by type) kg 29,393 42,399 29,070
Stakeholder Engagement Water Pollutants
– n-H (by type) kg 515 364 958
GRI Index
– Others (by type) kg 421,635 388,867 143,679
– Korea (by region) kg 34,726 33,300 34,223
Statement
About This Report – Overseas (by region) kg 615,134 619,456 401,247
Total Ton 857,146 573,123 585,744
Sustainability Magazine – General waste (by type) Ton 810,992 528,116 546,408
Weight of Waste – Designated waste (by type) Ton 46,154 45,007 39,336
– Korea (by region) Ton 542,106 307,729 338,266
– Overseas (by region) Ton 315,040 265,395 247,478
Total Ton 784,219 573,021 585,382
– Landfill Ton 34,404 29,266 14,466

Weight of Waste by
– Incineration Ton 34,633 40,011 35,890
Disposal Method
– Recycling Ton 709,841 496,992 528,687
– Others Ton 5,341 6,752 6,338
Total Ton 3,930 4,723 3,160

Weight of Hazardous Chemical
– Korea Ton 458 456 305
Substances
– Overseas Ton 3,473 4,268 2,856
Costs and investments for

Environmental Costs KRW billion 136.6 118.4 111.5
environmental protection
087
1 Introduction
Our Commitment 03. Creating a Sustainable Supply Chain

Quality and Technology

Support for Foundation of Company 107 108 106 Integrated figure of Hyundai and Kia; 11 tier 1 suppliers and 95 tier 2 and 3 suppliers
Global Network Volunteer Group
Korea Automotive Parts
Industry Promotion
Supplier Support Group Company 48 54 52 Integrated figure of Hyundai and Kia; 21 tier 1 suppliers and 31 tier 2 suppliers
Cumulative Number of Suppliers in
Facts & Figures Number of suppliers Company 700+ 800+ 700+
Joint Expansion Partnership
Suppliers in Joint Growth and Number of suppliers in the Integrated figure of Hyundai and Kia; 119 small-sized suppliers and
Company 285 273 272
GRI Index Fair Trade Agreements agreements 153 medium-sized suppliers
Independent Assurance Recruitment of Suppliers Number of people hired Person 11,300 11,500 12,000 Approximately 12,000 persons
Statement
About This Report
Our Commitment 04. Building a Healthy Corporate Culture

Sustainability Magazine Classification Unit 2017 2018 2019 Note
Number of people with labor union
Person 48,261 47,807 49,647
Labor Union Membership membership
(Korea) Labor union membership
% 70.1 68.5 70.7
percentage
New Employee Hires

Number of people hired Person 4,370 4,154 4,805
(Korea)
Turnover rate % 1.75% 3.62% 3.85% 2,635 persons / 68,391 persons at the beginning of the year
Employee Turnover
(Korea)
Voluntary turnover rate % 0.34% 0.70% 0.66% 370 persons / 68,391 persons at the beginning of the year
Organizational Culture Survey Employee engagement rate % 58.7 61.7 64.0
Number of female employees

Person 3,405 3,577 3,753
(Korea)
Number of female executives
Person 3 2 5
(Korea)
Person 1,431 1,504 1,698
Number of Female Employees (North America)
by Region Number of female executives
Person 6 5 9
(North America)
Person 1,363 1,419 1,436
(Europe)
Person 2 1 1
(Europe)
088
1 Introduction

Person 2,134 2,131 2,025
(China)
Global Network
Person 10 8 7
Business Performance (China)
Facts & Figures Number of female employees

Person 155 177 200
(India)
Stakeholder Engagement Number of female executives
Person - - -
Number of Female Employees (India)
GRI Index
by Region Number of female employees
Person 521 664 764
Independent Assurance (Others)
Statement Number of female executives
Person - - -
About This Report (Others)
Total number of female employees Person 9,009 9,472 9,876
Total number of female executives Person 21 16 22

Percentage of female employees % 7.4 7.6 8.2 Total number of female employees / Total number of employees
Number of managers in Korea Person 14,883 14,115 14,736

Number of female managers
Person 399 461 558
in Korea
Number of managers overseas Person - 3,042 3,491 ‒ T
he scope of managers includes managerial level and higher office, research, and
special staff, and executives except for the Executive Vice Chairman and advisors
Number of Female Managers Number of female managers
Person - 493 552 ‒ Began to collect and disclose overseas data in 2018
overseas
Total number of managers Person 14,883 17,157 18,227
Total number of female managers Person 399 954 1,110
Percentage of female managers % 2.7 5.6 6.1

Number of employees
Person 2,501 2,055 2,076
Employees with Disabilities with disabilities
(Korea) Percentage of employees
% 3.63% 2.95% 2.92% 2,055 persons / 7,0421 persons
with disabilities
Under 30 years old Person 6,404 7,602 6,638
Number of Employees by Age 30-50 years Person 34,633 32,199 32,260

(Korea) Over 50 years old Person 27,839 29,954 31,523
Total Person 68,876 69,755 70,421
Training expenses per employee KRW 10,000 43 40 37

Employee Training
Training hours per employee Hour 45 38 33
(Korea)
Total training expenses KRW billion 29.3 26.0 26.3
089
1 Introduction

Number of employees
Person 22 93 138
on parental leave (Male)
Global Network As of the end of 2019
Number of employees
Business Performance Person 123 122 142
on parental leave (Female)
Facts & Figures Return-to-work rate

% 88.9 92.5 91.2
Parental Leave after parental leave (Male) Percentage of employees who have returned to work against
Stakeholder Engagement (Korea) Return-to-work rate number of employees who are expected to be returning to work
% 87.0 97.5 92.2
after parental leave (Female)
GRI Index
Retention rate after parental leave
Independent Assurance % 94.2 100.0 88.3
(Male) Percentage of employees who stay at work as of 2019 year-end against
Statement number of employees who returned to work in 2018
Retention rate after parental leave
% 96.4 98.3 93.1
About This Report (Female)
Number of employees involved in
Person 210 286 377
occupational accidents (Korea)
Based on figures of the Ulsan, Asan and Jeonju plants in Korea
Sustainability Magazine Accident rate (Korea) % 0.53 0.71 0.93

Person 41 32 18
occupational accidents (Overseas)
Occupational Accidents Based on figures of overseas manufacturing plants
Accident rate (Overseas) % 0.11 0.09 0.08

Person 251 318 395
occupational accidents (Total) Based on figures of the Ulsan, Asan and Jeonju plants in Korea, and
overseas manufacturing plants
Accident rate (Total) % 0.33 0.42 0.64
Business Sites (Korea) 1.96 2.39 3.18
Business Sites (Overseas) 0.47 0.33 0.33

‒ LTIFR: Number of lost-time injuries per million hours worked
Business Sites (Total) 1.28 1.46 2.09 during an accounting period
Lost Time Injuries Frequency Rate
‒ Based on figures of the Ulsan, Asan and Jeonju plants in Korea, and
(LTIFR)
Suppliers (Korea) 1.62 2.46 5.16 overseas manufacturing plants, excluding Hyundai Motor Brazil (HMB)
Suppliers (Overseas) 0.04 0.10 0.22
Suppliers (Total) 0.46 0.67 0.92
Business Sites (Korea) 0.49 0.86 1.29 ‒ OIFR: Number of occupational injuries per million hours worked
Occupational Injuries Frequency Rate during an accounting period
Business Sites (Overseas) 0.10 0.11 0.02
(OIFR) ‒ Based on figures of the Ulsan, Asan and Jeonju plants in Korea, and
Business Sites (Total) 0.31 0.52 0.81 overseas manufacturing plants
090
1 Introduction
Our Commitment 05. Contributing to the Development of Local Communities

Social welfare KRW million 23,147 48,817 25,062
Global Network Medical and healthcare KRW million 414 85 48
Business Performance Education KRW million 18,969 11,691 10,780
Facts & Figures Culture & Sports KRW million 11,210 11,166 11,545
Social Contributions by Theme
Environmental protection KRW million 7,001 2,482 1,942
Stakeholder Engagement (Korea)
Emergency relief KRW million 1,203 335 972
GRI Index
International exchange KRW million 1,380 1,273 1,536
Statement Others KRW million 1,635 1,425 11,593
About This Report Total KRW million 64,959 77,275 63,478
Cash donations KRW million 42,554 62,663 47,508

Social Contributions Expenditure
In-kind contributions KRW million 8,297 2,705 1,399
Sustainability Magazine by Type (Korea)
Management overhead KRW million 14,109 11,907 14,571
Number of volunteer activities Case 2,129 1,873 2,815

Employees Volunteering
Number of participants Person 17,105 17,879 26,933
(Korea)
Number of hours participated Hour 125,093 59,508 93,798
Americas USD 20,281,277 19,888,326 20,021,413 Regions of North America and Central & South America
Asia-Pacific, Middle East, and
USD 3,343,664 4,642,344 4,764,323 Regions of Asia-Pacific, Africa & Middle East, and India
Africa
Social Contributions Expenditure
by Region Europe USD 1,703,200 1,438,128 1,596,192 Regions of Europe and Russia
China USD 372,181 756,000 881,609
Total USD 25,700,322 26,724,798 27,263,537
Membership Fees Total KRW million 6,677 7,489 7,081
Foundation of Korea Automotive

KRW million 2,750 3,124 3,300
Parts Industry Promotion
Korea Automobile Manufacturers
KRW million 2,171 2,037 1,948
Association
1)
Major Sponsored Organizations Korea Automotive Technology
KRW million 302 305 314
Institute
H2Korea KRW million - 200 200
Korea Traffic Disabled Association KRW million - - 110
1)
No political contribution to lobbying, interest representation, local, regional or national political campaigns and other related spending in Korea
091
1 Introduction
Our System
Number of training sessions
Case 34 26 41
(Korea)
Global Network
Number of participants
Business Performance Person 25,089 24,959 22,362
(Korea)
Compliance Management
Facts & Figures Education Number of training sessions
Case 1 4 2
(Overseas)
Number of participants
Person 800 988 842
GRI Index (Overseas)
Legal sanction against the violation

Independent Assurance Case - - - Violations related to unfair competition, such as collusion and monopoly
of fair trade
Statement Non-compliance with Regulations
and Voluntary Codes Penalty and fine for
About This Report non-compliance with KRW million 60 - -
environmental regulations
Dividends
Sustainability Magazine KRW billion 1,080 1,066 1,054
(Shareholders and investors)
Interest expenses Refer to “financial income and financial expense”

KRW billion 333 307 317
(Shareholders and investors) in the notes to the consolidated financial statement
Refer to “classification of expenses by nature”

Salaries (Employees) KRW billion 8,921 8,894 9,397
Distribution of Economic Value in the notes to the consolidated financial statement
(Consolidated figures basis)
Refer to “classification of expenses by nature (raw material and product usage amount)”
Raw materials costs (Suppliers) KRW billion 53,039 56,845 62,259
in the notes to the consolidated financial statement
Income tax (Government) KRW billion -108 885 978 Refer to “income tax” in the notes to the consolidated financial statement
Donation (Local communities) KRW billion 69 85 66 Refer to “other income/expense” in the notes to the consolidated financial statement
Total KRW billion 63,334 68,083 74,071
Dividends
KRW billion 1,080 1,066 1,054
Interest expenses
KRW billion 191 156 111 Refer to “financial income and financial expense” in the notes to the financial statement
Salaries (Employees) KRW billion 6,266 6,127 6,527 Refer to “classification of expenses by nature” in the notes to the financial statement
Distribution of Economic Value
(Separate figures basis) Refer to “classification of expenses by nature (raw material and product usage amount)”
Raw materials costs (Suppliers) KRW billion 25,828 29,025 32,333
in the notes to the financial statement
Income tax (Government) KRW billion 526 295 358 Refer to “income tax” in the notes to the financial statement
Donation (Local communities) KRW billion 48 64 48 Refer to “other income/expense” in the notes to the financial statement
Total KRW billion 33,938 36,733 40,431

092
1 Introduction
Stakeholder Communication
Hyundai places the highest priority on stakeholder trust and strives to strengthen communication across all areas of its business activities. We have categorized stakeholders into six major groups − customers and dealers, employees,
government, shareholders and investors, suppliers, and local communities − and continue to identify and reflect their requirements, with the goal of building relationships based on trust. This report reflects the material topics identified
Global Network through the materiality analysis, and provides detailed, transparent information regarding our sustainability performance which we have achieved based on our sustainability management system and five mid- to long-term commitments.
Business Performance Customers and Dealers Employees Suppliers Local Communities Government Shareholders and Investors
Facts & Figures The government enacts laws and

Dealers deliver Hyundai’s products Employees handle product Suppliers provide parts or materials Local communities refer to residents in Shareholders and investors provide
regulations that are related to the
Stakeholder Engagement Definition of and services to customers, while development, production, sales as to Hyundai, enabling the company to areas located close to our business sites finance and capital to the company,
automobile industry or decides on
key stakeholder customers decide on making a well as all activities that support the produce quality products. Their quality and global citizens who are influenced so that Hyundai can maintain growth
regulation levels on corporations’
GRI Index groups purchase based on the delivered above. Their competencies mean the competitiveness directly impacts by our activities. Hyundai strives for engines while implementing diverse
business operation, so that it can
product and service. company’s competencies. Hyundai’s quality. their sustainable development. strategies or running our business.
Independent Assurance influence our business activities.
Statement
• Motor show and new car launching • Labor-Management Council • Win-win growth and fair trade • Social contribution programs • Public hearings • Annual general meeting
About This Report
ceremony • Employee satisfaction surveys agreement • Communication with local • Policy-making discussions and • Company briefing
• Test driving • Meetings and events • Seminar and training for suppliers communities nearby the company’s briefings • IR meetings
• Before Service • Grievance handling system • Energy-Saving Technology business sites • Corporate Governance &
Sustainability Magazine • Customer satisfaction survey • Occupational Safety and Health Exchange Meeting • Recruitment Communication Committee
Communication • Car club Committee • R&D Tech-Day • Family inviting events • Website
channels by • On-line (Social media) • Work-related education and training • R&D Symposium
key stakeholder • Website • R&D Motor Show
groups • My Car Story 2.0 • Foundation of Korea Automotive
• Sports sponsorship Parts Industry Promotion
• Dealer seminars • Procurement portal
• Dealer conventions
• Dealer events
• Agent conventions
• Producing eco-friendly vehicles • Developing human resources • Win-win growth • Job creation and retention • Anti-corruption and • Corporate governance
• Improving fuel efficiency • Protecting human rights in the • Value chain sustainability • Social contributions ethical management • Financial performance
• Customer and product safety workplace • Raw and subsidiary materials • Reducing wastewater and wastes • Establishment of infrastructure • Strategy for sustainable growth
Issues of interest by
• Customer communication • Employee compensation management • Water resource management • Reducing air pollution • Technological innovation
key stakeholder
• Production quality management • Labor-management relations • Protecting biodiversity • Risk management
groups
• Brand reputation • Health and safety in the workplace • Managing hazardous substances
• Minimizing hazardous substances • Greenhouse gas and energy in the workplace
in products management
Our Commitment Our System
Smart mobility-based customer Pursuing eco-friendly value Creating a sustainable Building a healthy
Compliance Corporate governance
experience innovation throughout the entire value chain supply chain corporate culture
Contributing to the development of local communities Ethical management Risk management

093
1 Introduction
GRI Index
Universal Standards
GRI Standards
Page Note
No. Core Title
Global Network 102-1 Core Name of the organization 104 　
Business Performance 102-2 Core Activities, brands, products, and services 7
Facts & Figures 102-3 Core Location of headquarters 104 　
Stakeholder Engagement 102-4 Core Location of operations 78 　
GRI Index 102-5 Core Ownership and legal form 70-72 Business report
102-6 Core Markets served 79-80 　

Statement 102-7 Core Scale of the organization 79-80 　
About This Report 102-8 Core Information on employees and other workers 82 　
102-9 Core Supply chain 45 　
Sustainability Magazine 102-10 Core Significant changes to the organization and its supply chain - No significant changes
102-11 Core Precautionary Principle or approach 76 　
102-12 Core External initiatives 7 　
102-13 Core Membership of associations 90 　
102-14 Core Statement from senior decision-maker 3 　
102-15 Key impacts, risks, and opportunities 15-17 　
102-16 Core Values, principles, standards, and norms of behavior Corporate philosophy Company website
102-17 Mechanisms for advice and concerns about ethics 75 　
102-18 Core Governance structure 72-74 　
102-21 Consulting stakeholders on economic, environmental, and social topics 92 　
102-22 Composition of the highest governance body and its committees 73-74 　
102-23 Chair of the highest governance body 72 　
102-29 Identifying and managing economic, environmental, and social impacts 74
102-35 Remuneration policies 73
102-38 Annual total compensation ratio 73

094
1 Introduction
Universal Standards
GRI Standards
Page Note
No. Core Title
Global Network 102-40 Core List of stakeholder groups 92
Business Performance 102-41 Core Collective bargaining agreements 87
Facts & Figures 102-42 Core Identifying and selecting stakeholders 92
Stakeholder Engagement 102-43 Core Approach to stakeholder engagement 92
GRI Index 102-44 Core Key topics and concerns raised 92
Independent Assurance 102-45 Core Entities included in the consolidated financial statements - Business report
Statement 102-46 Core Defining report content and topic Boundaries 16-17
About This Report 102-47 Core List of material topics 16
102-48 Core Restatements of information -
Sustainability Magazine 102-49 Core Changes in reporting - No significant changes
102-50 Core Reporting period 104
102-51 Core Date of most recent report 104
102-52 Core Reporting cycle 104
102-53 Core Contact point for questions regarding the report 104
102-54 Core Claims of reporting in accordance with the GRI Standards 104
102-55 Core GRI content index 93-97
102-56 Core External assurance 98-103

095
1 Introduction
Topic Specific Standards _ Material Topics

GRI Standards
Page Note
Issue Name No. Title
Global Network 103-1 Explanation of the material topic and its Boundary
Business Performance Developing
103-2 The management approach and its components 15-17, 32-34, 38
eco-friendly vehicles
Facts & Figures 103-3 Evaluation of the management approach
Stakeholder Engagement 305-1 Direct (Scope 1) GHG emissions 84
305-2 Energy indirect (Scope 2) GHG emissions 84

GRI Index
Emissions 305-3 Other indirect (Scope 3) GHG emissions 84
Statement 305-4 GHG emissions intensity 85
About This Report 305-5 Reduction of GHG emissions 85
103-1 Explanation of the material topic and its Boundary

Technological
103-2 The management approach and its components 15-17, 19-21, 30 Replace indices with the overall development status
Sustainability Magazine innovation
103-3 Evaluation of the management approach

Customer and
103-2 The management approach and its components 15-17, 23-24, 30
product safety
Customer health and Conduct crash tests for more than 20 new models
416-1 Assessment of the health and safety impacts of product and service categories 95
safety launched in the U.S. in 2020
Customer
103-2 The management approach and its components 15-17, 25-28, 30, 84 Replace indices with the customer satisfaction index
communication

Employee diversity
103-2 The management approach and its components 15-17, 52, 56
and human rights
Human rights
412-2 Employee training on human rights policies or procedures 52
assessment

Value chain
103-2 The management approach and its components 15-17, 45-46
sustainability
Value chain
414-2 Negative social impacts in the supply chain and actions taken 45
management
096
1 Introduction
Topic Specific Standards _ Non Material Topics

GRI Standards
Page Note
No. Title
Global Network 201-1 Direct economic value generated and distributed 91
Business Performance 205-2 Communication and training about anti-corruption policies and procedures 75
Facts & Figures 205-3 Confirmed incidents of corruption and actions taken - No incidents occurred
Stakeholder Engagement 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 91
GRI Index 301-1 Materials used by weight or volume 85
Independent Assurance 302-1 Energy consumption within the organization 84

Statement 302-3 Energy intensity 84
About This Report 302-4 Reduction of energy consumption 84
303-1 Water withdrawal by source 85
Sustainability Magazine 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions 85
306-1 Water discharge by quality and destination 86
306-2 Waste by type and disposal method 86
306-3 Significant spills - No spills occurred
In the case of significant fines and penalties of more than

USD 10,000, one case occurred at the Jeonju Plant in 2017 –
307-1 Non-compliance with environmental laws and regulations 91
penalty on violating Clean Air Conservation Act Article 31 due
to the influx of outside air into the discharge facility
308-1 New suppliers that were screened using environmental criteria 45

097
1 Introduction
Topic Specific Standards _ Non Material Topics

GRI Standards
Page Note
No. Title
Global Network 401-1 New employee hires and employee turnover 87
Business Performance 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 50
Facts & Figures 401-3 Parental leave 50, 89
Stakeholder Engagement 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 89
GRI Index Conduct harmful factor assessments and operate prevention

403-3 Workers with high incidence or high risk of diseases related to their occupation - programs because production line workers are exposed to
Independent Assurance possible risks of a musculoskeletal disorder and hearing loss
Statement
404-1 Average hours of training per year per employee 88
About This Report
404-2 Programs for upgrading employee skills and transition assistance programs 52
406-1 Incidents of discrimination and corrective actions taken - No incidents of discrimination occurred
Sustainability Magazine 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk - No business sites and suppliers at significant risk identified
408-1 Operations and suppliers at significant risk for incidents of child labor - No business sites and suppliers at significant risk identified
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor - No business sites and suppliers at significant risk identified
411-1 Incidents of violations involving rights of indigenous peoples - No incidents of violations occurred
413-1 Operations with local community engagement, impact assessments, and development programs 90
415-1 Political contributions - No political contributions made
417-1 Requirements for product and service information and labeling 29
2 reports made to the spam response center of Korea Internet

& Security Agency about spam messages
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data - (vindication completed)
1 case regarding the connectivity assessment conducted by
Korea Communications Commission
419-1 Non-compliance with laws and regulations in the social and economic area 91
098
1 Introduction
Independent Assurance Statement
Introduction Limitations
3 Sustainability Factbook Hyundai Motor Company (“HMC”) commissioned DNV GL Business Assurance Korea Ltd. (“DNV GL”), part of DNV The engagement excludes the sustainability management, performance and reporting practices of HMC’
GL Group, to undertake independent assurance of the Sustainability Report 2020 (the “Report”). The directors of subsidiaries, associated companies, suppliers, contractors and any third-parties mentioned in the Report. We
HMC have sole responsibility for the preparation of the Report. The responsibility of DNV GL in performing the did not interview external stakeholders as part of this Assurance Engagement. Economic performance based
Global Network assurance work is to the management of HMC in accordance with the terms of reference. DNV GL’s assurance on the financial data is cross-checked with internal documents, the audited consolidated financial statements
engagements are based on the assumption that the data and information provided by the client to us as part of and the announcement disclosed at the website of Korea Financial Supervisory Service (http://dart.fss.or.kr) as
our review have been provided in good faith. well as HMC’s website (www.hyundai.com). These documents, financial statements and the announcements
Facts & Figures are not included in this Assurance Engagement. Limited depth of evidence gathering including inquiry and
analytical procedures and limited sampling at lower levels in the organization were applied. The baseline data for
Stakeholder Engagement Scope and Basis of Assurance environmental and social performance are not verified, while the aggregated data at the corporate level are used
GRI Index Based on non-financial data and sustainability activities and performance data of 2019 generated from HMC, we for the verification. DNV GL expressly disclaims any liability or co-responsibility for any decision a person or an
have evaluated the adherence to AA1000 AccountAbility Principles 20181 and assessed the quality of sustainability entity may make based on this Assurance Statement.
Independent Assurance performance information. We have reviewed that the Topic-specific disclosures of GRI Standards which are
Statement
identified in the process for defining report content;
About This Report Conclusion
No. Material Topic GRI Topic Specific Disclosure On the basis of the work undertaken, nothing comes to our attention to suggest that the reported data and
information disclosed in the Report do not give a fair representation of HMC’s related sustainability performance
1 Developing eco-friendly vehicles 305-1,2,3,4,5
Sustainability Magazine nor is prepared in accordance with GRI Standards (Core option). Further opinions with regards to the adherence to
2 Technological innovation N/A the Principles are made below;
3 Customer and product safety 416-1
The Principle of Inclusivity
4 Customer communication N/A
HMC has identified internal and external stakeholder groups such as Customers•Dealers, Employees, Government,
5 Employee diversity and human rights 412-2 Shareholders·Investors Business partners, and Local Communities. HMC engages with the stakeholders at the
6 Value chain sustainability 414-2 company and business unit levels through various channels. The approaches to engage with selected stakeholders
and relevant organizations are described in the Report. HMC aligns sustainability management activities with UN
SDGs, tried to create social value through long-term strategy, and pursues sustainable social contribution in the
We performed our work using AA1000AS 2008 with 2018 addendum2 and DNV GL’s assurance methodology
industry.
VeriSustain™3 (Ver. 5.0) which is based on our professional experience, international assurance best practices.
DNV GL provides Type 1 and the moderate level of assurance. But some environmental performances have
The Principle of Materiality
been verified by Type 2. The assurance was carried out from May and till July 2020. We undertook the following
HMC has conducted the materiality assessment to prepare the Report. Various issues have been derived by
activities as part of the assurance process:
analysing the topics covered in various global initiatives and standards, reviewing industry peers’ reports and
media reports. The issue pools were used on internal and external stakeholder survey to rate the material topics
• challenged the sustainability-related statements and claims made in the Report and assessed the
and subsequently 6 material topics are prioritized. We have reviewed the materiality assessment process and
robustness of the underlying data management system, information flow and controls;
noted relevant material topics prioritized from the process are addressed in the Report.
• interviewed representatives from the various departments;
• conducted document reviews, data sampling and interrogation of supporting databases and associated
The Principle of Responsiveness
reporting system as they relate to selected content and performance data;
HMC identified material sustainability as stakeholder interest issues, presented management approaches with
• reviewed the materiality assessment report.
a long-term strategy and major achievements on material topics for each stakeholder issue in the Report. As an
1
effective response is aligned with the organisation’s vision, strategies and objectives, it is recommended that the
AA1000 AccountAbility Principles 2018: Internationally accepted, four principles-based framework and guidance that organisations can use to
identify, prioritise and respond to sustainability performance and responsibility. materiality assessment for effective response be implemented by a cross-functional organization including risk,
2
AA1000 Assurance Standard 2008: Internationally accepted, freely available standard that provides the requirements for conducting sustainability compliance, and strategy development etc.
assurance.
3
The VeriSustain protocol is available upon request at DNV GL Website (www.dnvgl.com)
099
1 Introduction
The Principle of Impact Competence and Independence

3 Sustainability Factbook The impact on stakeholders related to material topics should be identified, monitored and assessed. The Report DNV GL applies its own management standards and compliance policies for quality control, in accordance
presents direct and indirect impacts of material topics identified by the materiality assessment. For more effective with ISO/IEC 17021:2015 – Conformity Assessment Requirements for bodies providing audit and certification
decision-making and results-based management, it is recommended that a systematic process be implemented of management systems, and accordingly maintains a comprehensive system of quality control, including
Global Network to monitor and evaluate impacts of material topics and to analyse major changes on its documented policies and procedures regarding compliance with ethical requirements, professional standards
performances. and applicable legal and regulatory requirements. We have complied with the DNV GL Code of Conduct4 during
the assurance engagement and maintain independence where required by relevant ethical requirements. This
Facts & Figures Reliability of Specific sustainability performance information engagement work was carried out by an independent team of sustainability assurance professionals. DNV GL was
We have reviewed the reliability of the disclosure data – ‘waste generation’ and ‘Occupational Injuries and not involved in the preparation of statements or data included in the Report except for this Assurance Statement.
Illnesses rate’. We have interviewed the in-charge person, reviewed the process of gathering and processing DNV GL maintains complete impartiality toward stakeholders interviewed during the assurance process. DNV GL
GRI Index data and test information on a sampling basis. In-charge person can explain the source and process of the data has no other contract with HMC and did not provide any services to HMC in 2020 that could compromise the
identified above, which is considered traceable. The intentional error or misstatement is not noted from the data independence or impartiality of our work.
Independent Assurance and information disclosed in the Report. Data owners were able to demonstrate the origin and interpretation of
Statement
the data in a reliable manner. The data was identifiable and traceable.
About This Report
July 2020
Seoul, Korea
Jang Sup Lee

Country Representative
DNV GL Business Assurance Korea Ltd.
4
DNV GL Code of Conduct is available from DNV GL website (www.dnvgl.com)
100
1 Introduction
Assurance Statement
Relating to Hyundai Motor Company’s Scope 1 & 2 GHG emissions in Korea for the 2019 calendar year
This Assurance Statement has been prepared for Hyundai Motor Company.
Terms of Engagement LRQA’s Opinion

Global Network Lloyd’s Register Quality Assurance Ltd. (LRQA) was commissioned by Hyundai Motor Company (HMC) to provide Based on LRQA’s approach, except for the effect of the matter as below, we believe that the report is prepared in
independent assurance on its Greenhouse Gas (GHG) Inventory Report for the calendar year 2019 (the report) accordance with GHG Target Management Scheme for quantification and reporting of GHG emissions in Korea
Business Performance against GHG Target Management Scheme for quantification and reporting of GHG emissions in Korea using and the GHG emissions data in the Table 1 is materially correct:
Facts & Figures Specification with guidance for verification of greenhouse gas assertions. The report relates to direct GHG
emissions and energy indirect GHG emissions. • The GHG emissions from LNG and electricity consumed by the companies which are subject to GHG Target
Stakeholder Engagement Management Scheme in Korea and are occupying HMC’s own buildings have not been excluded from
HMC’s organizational boundary, but we are confident that they are below the quantitative materiality level.
GRI Index
Management Responsibility
Independent Assurance LRQA’s responsibility is only to HMC. LRQA disclaims any liability or responsibility to others as explained in the end Dated: 24th April 2020
Statement footnote. The management of HMC is responsible for preparing the report and for maintaining effective internal
About This Report controls over all the data and information within the report. Ultimately, the report has been approved by, and
remains the responsibility of HMC.
IL-Hyoung Lee
On behalf of Lloyd’s Register Quality Assurance Ltd.
Sustainability Magazine LRQA’s Approach 17th Floor, Singsong Building, 67 Yeouinaru-ro, Yeongdeungpo-gu, Seoul, 07327, Korea
LRQA’s assurance engagement has been carried out in accordance with our verification procedure using GHG
Target Management Scheme in Korea: Specification with guidance for verification of greenhouse gas assertions to LRQA Reference: SEO 6012382
reasonable level of assurance.
Table1. GHG emissions reported in the Report
The following tasks were undertaken as part of the evidence gathering process for this assurance engagement: Scope (as defined within GHG Target Management Scheme in Korea) 2019
• Visiting sites and auditing management system to control the data and records regarding GHG emissions
Direct GHG Emissions 501,388
and energy uses
• Interviewing the relevant persons responsible for managing and maintaining data and associated records Energy Indirect GHG Emissions 1,080,556
• Reviewing the historical data and information back to source for the calendar year 2019 Total GHG Emissions 1,581,941
Data is presented in tonnes of CO2 equivalent.

Level of Assurance & Materiality
The opinion expressed in this Assurance Statement has been formed on the basis of a reasonable level of
This document is subject to the provision below:
assurance, and at the materiality of the professional judgement of the verifier and at the materiality level of 2.5%. This Assurance Statement is only valid when published with the Report to which it refers.
Lloyd’s Register Quality Assurance Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively,
referred to in this clause as the ‘Lloyd’s Register Group’. The Lloyd’s Register Group assumes no responsibility and shall not be liable to any person for any loss,
damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with
the relevant Lloyd’s Register Group entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms
and conditions set out in that contract.
Because of the inherent limitations in any internal control it is possible that fraud, error, or non-compliance with laws and regulations may occur and not be
detected. Further, the verification was not designed to detect all weakness or errors in internal controls so far as they relate to the requirements set out above
as the verification has not been performed continuously throughout the period and the verification carried out on the relevant internal controls were on a test
basis. Any projection of the evaluation of control to future periods is subject to the risk that the processes may become inadequate because of changes in
conditions, or that the degree of compliance with them may deteriorate.
The Korean version of this statement is the only valid version. The Lloyd’s Register Group assumes no responsibility for versions translated into other
languages.
Copyright © Lloyd’s Register Quality Assurance Limited, 2019. A member of the Lloyd’s Register Group.
101
1 Introduction
Assurance Statement
Relating to Hyundai Motor Company’s Scope 1 & 2 GHG emissions of overseas factories for the 2019 calendar year
This Assurance Statement has been prepared for Hyundai Motor Company.
Terms of Engagement LR’s Opinion

Global Network Lloyd’s Register Quality Assurance Ltd. was commissioned by Hyundai Motor Company (HMC) to provide Based on LR’s approach, except for the effect of the matters described in the Basis for Qualified Opinion as below,
independent assurance on its greenhouse gas (GHG) emissions of its overseas factories against “GHG Target nothing has come to our attention that would cause us to believe that the GHG emissions in the Table 1 are
Business Performance Management Scheme for quantification and reporting of GHG emissions in Korea” using “Verification guideline not reported in accordance with “GHG Target Management Scheme for quantification and reporting of GHG
Facts & Figures for GHG emission trading system in Korea”. emissions in Korea”, in all material respects.
Management Responsibility Basis for Qualified Opinion
GRI Index
LR’s responsibility is only to HMC. LR disclaims any liability or responsibility to others as explained in the end When HMC determined its organizational boundary by applying control approach, HMC did not exclude GHG emissions
Independent Assurance footnote. The management of HMC is responsible for preparing the report and for maintaining effective internal of other entities that operated their own facilities in HMC’s overseas factories from the calculation of its GHG emissions.
Statement controls over all the data and information within the report. Ultimately, the report has been approved by, and
About This Report remains the responsibility of HMC. Dated: 27 April 2020
LR’s Approach
LR’s assurance engagement has been carried out in accordance with our verification procedure using “Verification IL-Hyoung Lee
guideline for GHG emission trading system in Korea” to limited level of assurance. On behalf of Lloyd’s Register Quality Assurance Ltd.
17th Floor, Singsong Building, 67 Yeouinaru-ro, Yeongdeungpo-gu, Seoul, 07327, Korea
The following tasks were undertaken as part of the evidence gathering process for this assurance engagement:
• Visiting HMC’s headquarters located in Seoul and auditing management system to control the data and LR Reference: SEO6012382
records regarding GHG emissions
• Interviewing the relevant persons responsible for managing and maintaining data and associated records Table 1. Summary of GHG Emissions from HMC’s overseas factories in 2019
• Reviewing the historical data and information through sampling. (Unit: tCO2 eq)
BHMC BHMC
Plant HMMA HMI HAOS HMMC HMMR HMB HTBC Total
1~3 Fab. 4~5 Fab.
Level of Assurance & Materiality Scope1 33,635 82,609 53,293 29,450 24,947 36,209 35,655 7,585 3,368 306,751
The opinion expressed in this Assurance Statement has been formed on the basis of a limited level of assurance,
Scope2 157,085 164,774 110,246 240,908 24,619 78,365 28,505 4,960 10,936 820,398
and at the materiality of the professional judgement of the verifier.
Total 190,720 247,383 163,539 270,358 49,566 114,574 64,160 12,545 14,304 1,127,149
Note: Scope 1 covers energy direct GHG emissions from only LNG consumptions and Scope 2 does energy indirect GHG emissions from
purchased electricity.
Lloyd’s Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited, and their respective officers, employees
or agents are, individually and collectively, referred to in this clause as ‘Lloyd’s Register’. Lloyd’s Register assumes no responsibility and shall not be liable to
any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person
has signed a contract with the relevant Lloyd’s Register entity for the provision of this information or advice and in that case any responsibility or liability is
exclusively on the terms and conditions set out in that contract.
The Korean version of this Assurance Statement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions translated into
other languages.
This Assurance Statement is only valid when published with the report to which it refers. It may only be reproduced in its entirety.
102
1 Introduction
Assurance Statement
Relating to Hyundai Motor Company’s Scope 3 GHG emissions for the 2019 calendar year
This Assurance Statement has been prepared for Hyundai Motor Company in accordance with our contract.
Terms of Engagement LR’s Opinion

Global Network Lloyd’s Register Quality Assurance Ltd. (LR) was commissioned by Hyundai Motor Company (HMC) to provide Based on LR’s approach nothing has come to our attention that would cause us to believe that HMC has not, in all
independent assurance on its Scope 3 greenhouse gas (GHG) emissions of against the assurance criteria below material respects:
Business Performance to a “limited level of assurance and materiality” using “CDP Korea verification procedure”1 and “LR’s verification
Facts & Figures procedure”. LR’s verification procedure is in accordance with ISAE 3000 and ISAE 3410. • Met the requirements above
• Disclosed accurate and reliable performance data in the Table 1 as all errors that were detected were
Stakeholder Engagement Our assurance engagement covered the Scope 3 GHG emissions related to HMC’s operations and activities in corrected during this verification engagement
Korea and specifically the following requirements:
GRI Index
The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of the
Independent Assurance • Reviewing whether its Scope 3 GHG emissions inventory has been prepared based on Corporate Value professional judgement of the verifier.
Statement Chain (Scope 3) Accounting and Reporting Standard2
About This Report • Evaluating the accuracy and reliability of data and information for only the Scope 3 GHG emissions in Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable
selected categories listed in the Table 1: 3 assurance engagement. Limited assurance engagements focus on aggregated data rather than physically
checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement
LR’s responsibility is only to HMC. LR disclaims any liability or responsibility to others as explained in the end is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement
footnote. HMC’s responsibility is for collecting, aggregating, analysing and presenting all the data and information been performed.
for calculating the Scope 3 GHG emissions and for maintaining effective internal controls over the systems from
which the Scope 3 GHG emissions are reported. Ultimately, the Scope 3 GHG emissions have been approved by,
and remains the responsibility of HMC. LR’s Approach
LR’s assurance engagement has been carried out in accordance with our verification procedure our verification
procedure. The following tasks though were undertaken as part of the evidence gathering process for this
assurance engagement:
• Visiting HMC’s headquarters located in Seoul and auditing management system to control the data and
records regarding the Scope 3 GHG emissions
• Interviewing the relevant persons responsible for managing and maintaining data and associated records
• Reviewing the historical data and information through sampling.
Observations
• HMC should establish more robust and documented data management procedure for reporting the
Scope 3 GHG emissions.
• HMC should enhance completeness of the Scope 3 GHG emissions inventory.
1
http://www.kosif.org
2
https://ghgprotocol.org/
3
GHG quantification is subject to inherent uncertainty.
103
1 Introduction
LR’s standards, competence and independence

3 Sustainability Factbook LR implements and maintains a comprehensive management system that meets accreditation requirements Table 1. Summary of the Scope 3 GHG Emissions in 2019
for ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in Categories Tonnes CO2eq Boundaries Tonnes CO2eq Boundaries
accreditation or other forms of recognition and ISO/IEC 17021 Conformity assessment – Requirements for bodies
Global Network providing audit and certification of management systems that are at least as demanding as the requirements of Category 1: Purchased Goods and Services 1,116,672 22 passenger car models
the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants
Business Performance Category 2: Capital Goods 251 Purchased computers and monitors
issued by the International Ethics Standards Board for Accountants.
Facts & Figures Category 3: Fuel- and Energy-Related Activities
97,199 All non-renewable energy sources
LR ensures the selection of appropriately qualified individuals based on their qualifications, training and (not included in Scope 1 or Scope 2)
experience. The outcome of all verification and certification assessments is then internally reviewed by senior
Category 5: Waste Generated in Operations 2,053 Waste (landfill and recycling) and wastewater
GRI Index management to ensure that the approach applied is rigorous and transparent.
Category 6: Business Travel 24,836 Business travels in overseas and domestic
Independent Assurance LR is HMC’s verification body for Korean GHG Emission Trading Schemes. The verification is the only work
Statement Category 7: Employee Commuting 15,093 Commuter buses
undertaken by LR for HMC and as such does not compromise our independence or impartiality.
About This Report Category 9: Downstream Transportation and
Dated: 5 June 2020 954,579 Shipping and land transportation
Distribution
Sustainability Magazine Category 11: Use of Sold Products 4,399,090 22 passenger car models
Category 12: End-of-Life Treatment of Sold Products 8,455 22 passenger car models
Tae-kyoung Kim
LR Lead Verifier Category 13: Downstream Leased Assets 4,126 Headquarters building and Gyedong building
Tae-Kyoung Kim
LR Lead Verifier 5 subsidiaries for which HMC has more than
On behalf of Lloyd’s Register Quality Assurance Limited Category 15: Investments 394,946 25 percent ownership and of which GHG
inventories are available
17th Floor, Sinsong Building, 67 Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Korea
Total 7,017,300
LRQA reference: SEO6012382
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104
1 Introduction
About This Report
Hyundai Motor Company has been publishing a sustainability report every year since 2003 in order to disclose both financial and non-financial performance, including its efforts to promote sustainable management, in an integrated
3 Sustainability Factbook manner and to communicate with stakeholders. The 2020 Sustainability Report of Hyundai Motor Company conveys our commitment to mid- to long-term goals and major sustainability issues. Through this, we will actively
communicate with stakeholders to realize social value as a global leading company.
Global Network Reporting Principles and Standards Scope and Boundary of Report Third Party Assurance
Business Performance This report applies the “Core Option” of the Global Reporting Initiative This report covers the activities of the headquarters as well as manufacturing This report has been assured by an independent assurance corporation
(GRI) Standards with appropriate modifications. In addition, this report plants, technical centers, design centers, and sales corporations operated (DNV GL) to ensure the accuracy, objectivity and credibility of the report
Facts & Figures satisfies the four principles – Inclusiveness, Materiality, Responsiveness, by Hyundai Motor Company in Korea and overseas. Financial information preparation process and all the information created, and the verification
and Impact – of the AA1000AP (AccountAbility Principles) that includes is based on the consolidated financial statements in accordance with was completed in accordance with international verification standards.
the obligation to explain sustainability management. the Korean International Financial Reporting Standards (K-IFRS). Non- The results of the third party assurance are detailed on P. 98-99. The
GRI Index financial data regarding environmental and social performance is based on financial information provided in this report has been audited by an
the separate figures of Hyundai Motor Company, and some performances independent auditor, and assurance on greenhouse gas emissions
Independent Assurance Reporting Period include those of Hyundai Motor Group. In case the reporting scope differs, the and energy usage was carried out in accordance with the verification
Statement
This report covers activities undertaken from January 1st, 2019 to reporting scope of the information is indicated separately in the annotation. principles of the guidelines such as “Administrative Guidelines for
About This Report December 31st, 2019, including some key activities conducted until Operation of Emission Trade System”.
the first half of 2020. As for quantitative performance, if the results need
to be tracked continuously, we have used data for the past three years.
Sustainability Magazine The reporting cycle for this report is one year. The previous report was
published in June 2019.
Hyundai Motor Company Reports of Recent Three Years

Publisher 2019 Sustainability Report
Headquarters: 12, Heolleung-ro, Seocho-gu, Seoul, 06797, Korea
Publication Date July 2020
Production CSV Strategy Team, Hyundai Motor Company

(Contact Information) Tel: +82-2-3464-8613 E-mail: [email protected]
Reporting Principle GRI Standards (Core option)
Reporting Boundary Hyundai Motor Company (also include some data and information of Hyundai Motor Group)
Economic (based on Korean International Financial Reporting Standards), 2017 Sustainability Report
Reporting Scope
social and environmental performance
January 1st, 2019 - December 31st, 2019
Reporting Period
(also include some data and information from the first half of 2020)
Reporting Cycle Annual (last report was published in June 2019)
Assurance DNV GL
2018 Sustainability Report
Design Talantone Creative Group
Sustainability
Magazine
The dreams of humanity evolve with time and space.

Hyundai Motor Company starts its drive of progress
in the direction of enriching the lives of all humanity.
As a global automotive company and member of the local communities,

Hyundai is improving our unique sustainability management systems
in consideration of our social impact and various stakeholder interests.
In particular, based on our unique strategy for creating shared value (CSV),
we are creating sustainable business values, amplifying the social impact,
and moving the world together.
We connect people with quality time. In 2019, Hyundai accelerated the pace of innovation to transform into a “smart mobility solution provider” and pondered the direction to take for our new brand
vision, “progress for humanity”. This Sustainability Magazine aims to highlight Hyundai’s efforts and outcomes in our journey towards a sustainable future based on the unique CSV strategy by sharing our
sustainability “C.A.S.E”.
Clean mobility Advanced technology Social value Empowered employees

Electric vehicles are garnering attention as growing calls for stricter With eco-friendliness becoming a global mega trend, automakers Pursuing sustainable growth while making improvements regarding Hiring, fostering, and retaining the best talent is a driving force behind
environmental regulations and more sustainable consumption are are focusing on eco-friendly internal combustion engines as part of social issues that people face today is the role and responsibility a company’s sustainable growth. Hyundai is concentrating on
evolving into a global trend. Hyundai views clean mobility as the their effort to develop eco-friendly vehicles. They are also equipping demanded of global corporate citizens. As a global automotive building a sound organizational culture, with a focus on empowering
engine and goal for our pursuit of sustainable growth. By developing automobiles with digital technologies in preparation for a smart company, Hyundai is enhancing our unique sustainable management our greatest asset and growth engine with greater autonomy
eco-friendly technologies with a focus on the environment and mobility era. Hyundai’s progress for humanity embraces human- systems in consideration of a wide range of our stakeholders as well work and responsibilities, as well as on communication for sound
future generations, we continue healthy growth, present new centered technological innovation. We seek to create new value by as our impacts on global communities. In particular, we strive to cooperation and growth. Autonomous, creative global-minded
standards for future mobility, and usher in a hydrogen society that developing the world’s first and best technologies that make daily generate distinctive social values, spread positive social impacts, and employees are the power that moves Hyundai and a key to our
runs on the unlimited, clean energy. mobility life safer and more convenient. grow together with local communities. sustainable growth.
P. 108-110 P. 111-114 P. 115-119 P. 120-122
* CASE stands for connected car, autonomous driving, shared, and electric. Together with MECA (mobility, electrification, connectivity, and autonomous), CASE is a keyword representing future mobility.
Sustainability C.A.S.E 1 ‒ Clean mobility
First mover in clean mobility

Hyundai is establishing a new paradigm for the future mobility market
with eco-friendly vehicle technologies that enhance humankind’s sustainability
and building a hydrogen society with unlimited, clean energy.
Trends & Target Hyundai’s Approach
According to Bloomberg New Energy Finance’s “Electric Vehicle Hyundai pursues opportunities for new growth balancing
Outlook 2019” report, the number of electric vehicles (EVs) on the economic and environmental values. Hyundai Motor Group
road, which was a few thousand in 2010, is projected to reach 28 aims to expand its EV line-up to 44 models, including models
million in 2030 and 56 million in 2040. Considering such a massive exclusively for its EV platform, by 2025. We plan to launch our
transformation from internal combustion engine vehicles (ICEVs) first all-electric model in 2021 on the strength of our competitive
to eco-friendly vehicles, electrification has become a core strategy edge in key components and “E-GMP”, an electric vehicle-only
of automakers in a pursuit of sustainable growth. Accordingly, platform. By developing a new architecture and adding more
global automakers are expanding EV line-ups, with a focus on efforts at building advanced EVs, we will join the ranks of the
developing eco-friendly technologies, in a bid to be the first to world’s top three electric automakers by 2025.
occupy the fast-growing market.
Alignment with UN SDGs

Sales Volume of Nexo

Nexo – next-generation FCEV Neptune – leading the shift into an era Hyundai – preparing ahead
(Unit: Vehicle)
adding on firsts and bests of eco-friendly commercial vehicles for a future hydrogen society
10,100
The 2013 mass-production of the world’s first fuel cell Eco-friendliness is a global trend that is shaping business, A hydrogen society, once considered a feature of the distant
electric vehicle (FCEV) was only the beginning. When many including the global commercial vehicle market. And at the future, is turning into a reality. Major advanced countries are
companies were pondering over the direction for their eco- center of it all is Hyundai. In October 2019, Hyundai unveiled increasing investment in the infrastructure of a hydrogen
friendly mobility operations, Hyundai became a firm believer the “Neptune”, a large-size concept truck powered by economy. In 2019, Korea also announced its roadmap for
of the strength of hydrogen, unlimited clean energy, focusing hydrogen only. The name is derived from Neptune, where facilitating a hydrogen economy, declaring its intention to lead
on the development of relevant technologies. As a result, the hydrogen makes up 80% of the planet’s atmosphere, as well the development of a hydrogen society. Hyundai will drive this
“Nexo”, a next-generation FCEV SUV launched in 2018, ranked as from Neptunus, reflecting the eco-friendly image of the shift toward a hydrogen society. To this end, we will set up a
4,194
No. 1 in global sales in 2019, thanks to its longest range on a god of the sea. The Neptune embodies Hyundai’s mobility domestic production line capable of rolling out 500 thousand
charge, top speed performance, and most spacious interior vision about the future of a hydrogen society. By expanding FCEVs a year by 2030 and sell 200 thousand hydrogen fuel cell
among FCEVs on the market. As of end the of 2019, FCEVs its market-proven FCEV competitiveness to its commercial systems a year. In February 2020, we signed a memorandum
on Korean roads numbered 5,126, making the country the vehicles, Hyundai will lead change in the future eco-friendly of understanding (MOU) with the US Department of Energy
727
world’s No. 2 FCEV leader. Leaving behind its distant memory commercial vehicle market. on the technological innovation and global expansion of the
2020(E)
2019
of keeping up with global auto leaders, Hyundai now leads the FCEV infrastructure, thereby shifting into higher gear to realize
2018
global market in hydrogen vehicle technology, writing a new a global hydrogen economy.
* Based on vehicles sold in Korea chapter in the history of future mobility.
DID
Did YOU
you
KNOW?
know?
Surprise Appearance of the Nexo

with BTS at the Grammy Awards
In January 2020, BTS, a global idol group, became the first Korean
artists to appear at the Grammy Awards. The group’s appearance
was accompanied by the Nexo, the world’s first mass-produced
FCEV, then followed by the unveiling of a global hydrogen
campaign at the New York Times Square, with BTS spreading
good vibes to fans across the globe. Through these and other
events, we are delivering the message of the value of hydrogen as
a “good” energy and of our vision of a better future.
Blue skies, fresh white snow, vibrant forests…

things we want to pass on to future generations,
the beauties of Mother Nature.
Hyundai will continue to ponder over ways to keep the
Earth sustainable, and share our thoughts far and wide.
Global green growth

achieved by eco-friendly EVs
In 2019, Hyundai Motor Group joined the ranks of the top 31) Hyundai Motor Group’s EV Export
of the global EV market, drawing global attention. Growing (Unit: Vehicle)
steadily since its 2009 mass-production of eco-friendly
vehicles, the Group has recently started a green growth drive 2016 9,255 New York Takeover with Hyundai x BTS
by rolling out various EV models and launching a sales drive
in advanced markets. The Group increased 2019 exports sales 2017 14,799
of EVs by 128% of the previous year’s, with the Kona EV being Kona EV Reaches
2018 27,798
the main driver of the growth. Having been well-received by the World’s Highest Point
eco-conscious customers across the globe, the Kona EV was 2019 63,414
ranked by Germany’s Auto Bild an overall No. 1 in the small A 1,519-km icy and snowy mountain path. The temperature
dropping to minus 30-35℃, with the atmospheric pressure falling
diesel SUV category, honored with the 2019 North American * Based on vehicles produced in Korea and on a wholesale basis
commensurately. Eight days of a grueling automobile journey
SUV of the Year award, and selected by WardsAuto as one of made possible thanks to a flawless mechanical and engine
the World’s 10 Best Engines. Chosen as an official police car performance. These are some of the hardships the Kona EV
by the St. Gallen province of Switzerland, the Kona EV proved endured to reach the 5,731-meter Sawula Pass of Tibet, thereby
its distinctive value once again. setting a Guinness world record of the highest altitude achieved
by an EV. Having proved the outstanding safety and reliability of
1)
Market share of 7% based on a world-renowned IHS Markit tally an EV even in an extreme environment, Hyundai will continue to Hyundai KONA Electric |
take on challenges and reach the summit of the EV market. Mission – Emission Impossible
Eco-friendly Vehicles
Sustainability C.A.S.E 2 ‒ Advanced technology
Technological tour de force

Bold innovation and unprecedented novelty can help the world prosper.
Envisioning humankind enjoying total freedom in mobility in a safer, more convenient
world, Hyundai continues to unveil world firsts and bests in technology.
Status & Outlook Hyundai’s Approach
Electrification is a megatrend no one can defy. Internal combustion While concentrating on electrification, Hyundai continues to
engine vehicles (ICEVs) are however still one of the major means push forward the evolution of internal combustion engines in
of transportation. Aware of this reality, automotive companies the direction of eco-friendliness, and to increase the efficiency
are striving to increase fuel efficiency while reduce exhaust of hybrid vehicles until the arrival of a 100% EV era. In addition,
gas emissions by applying innovative technologies to internal we are focusing on developing AI, autonomous driving and other
combustion engines. Moreover, in this day where automotive and cutting-edge technologies. Based on these technologies, we
IT industry boundaries are breaking down, traditional automotive continually introduce advanced driver assistance system (ADAS)
manufacturers are preparing for the future mobility market by technologies with the goal of leading change in smart mobility,
focusing on business diversification and developing technologies a bold reality comprising many imaginations made real. Going
that improve driver safety and conveniences based on artificial forward, we will continue with human-centered technological
intelligence (AI), autonomous driving and big data. innovation aimed at more eco-friendly, joyful and safer driving.

1 Smartstream G1.6 T-GDi system to which

the CVVD technology is applied
2 CVVD actuator
The world’s first CVVD –

a cutting-edge engine technology
High-performance engines are what both automotive companies
and drivers want. However, they require more fuel consumption
and generate higher exhaust gas emissions, which is why a
compromise has been accepted as the norm until now. In 2019,
Hyundai became the world’s first to develop Continuously Variable
Valve Duration (CVVD) technology that regulates the timing of
the intake valves opening and closing to optimum efficiency,
thereby solving the conflicting issues of performance, fuel
Strong, World’s 1st CVVD Engine Technology
efficiency, and eco-friendliness. The key to the technology is
that there are up to 1,400 settings that the CVVD system can
Cutting-edge technology that has captured the antinomic issues select from depending on how long the intake and exhaust
of performance and eco-friendliness
valves stay open or closed. Though simple in theory, the cutting-
edge technology took a great deal of effort and time to reach
4%
Improved engine
12%
Reduced
a level of perfection worthy of the industry recognition it has
gained as a world first. By continuing its pursuit of innovation,
we will stay in the forefront in the race for more competitive
performance exhaust gas engines, the heart of automobiles.
The world’s first ASC –

a transmission technology for HEV
Limitations and prejudices can be overcome by technology. Hybrid
electric vehicles (HEVs) have higher fuel efficiency than ICEVs but are
less fun to drive, particularly in terms of transmission responsiveness.
This trade-off has also been made obsolete by Hyundai. In July 2019,
Hyundai became the world’s first to, once again, to develop Active
Shift Control (ASC) technology that enhances the driving performance
of HEVs. By cutting the shift time by 30%, the technology has doubled
the joy of driving HEVs. The ASC control logic is revolutionary in that it
controls the automatic transmission 500 times per second using the
electric motor. While this extends the durability of the transmission, the
new technology reduces fuel consumption yet increases the pleasure of
driving HEVs. Hyundai continues to deliver a greater joy in driving and
to create distinctive customer value.
Sustainable,
Eco-friendly technology that
enhances Hyundai’s competitiveness
in the global HEV market
30%
Improved shift responsiveness through
ultra-precision control of the transmission
using a hybrid motor
20+
Registration completed for some 20 patents
in the EU, China, and other major markets,
including six patents in the U.S.
Safety and Quality Innovation DID

Did YOU
you
KNOW?
know?
Tied for the Most Combined

IIHS Awards for 2019
The Palisade has improved in safety. In September 2019, the popular family SUV passed the
collision test conducted by the Insurance Institute for Highway Safety (IIHS) which is known
for its stringent requirements. The Palisade earned the coveted Top Safety Pick+ (TSP+) rating,
the highest safety grade, in just three months after entering the US market. All Hyundai SUV
models, including the Santa Fe, Tucson, and Kona, are awarded the TSP+ grad, and our sedan
models, such as the Sonata and Elantra, and eco-friendly car model, the Nexo, are graded TSP +,
as well. The Accent, the IONIQ and four other models are graded TSP, a grade below TSP+. With
all its models awarded either the best or next-best safety grade, Hyundai in 2019 established
itself in the US market as the brand with the most industry-certified safe vehicles. Living up to
our reputation as the safest brand, Hyundai will continue to put customer lives and safety first.
IIHS Awards for 2019

13
2019 TSP+
Hyundai 6 7
Smart. 12
Kia Motors 5 7
Company A 9 9
Smart technology that identifies over 10,000 driving patterns
Company B 5 3 8
2019 TSP
and executes Level 2.51) self-driving Company C 6 1 7
Company D 5 1 6
Company E 1 4 5
The world’s first SCC-ML – Company F 3 2 5
4
an AI-based ADAS technology Company G
Company H
3 1
4 4
Genesis 3 3
AI that understands me takes me to the places of my choice. By SCC-ML Operation Principles
Company I 1 2 3
accurately identifying my driving patterns, it makes my safest
Step 1 Step 2 Step 3 Company J 3 3
and most comfortable, convenient driving possible. In 2019,
Company K 2 2
Hyundai developed SCC-ML2), a technology that enables semi- Sensors, such as front cameras and radars, With a thorough knowledge of the driver’s The control computer sorts out only
constantly collect information about various driving patterns, the computer executes information useful for determining Company L 1 1
autonomous driving to the driver’s driving patterns, for the first
driving situations and send it to the ADAS autonomous driving most similar to the the driver’s driving habits Company M 1 1
time in the world. Smart cruise control (SCC), an advanced driver control computer driver’s driving patterns
assistance system (ADAS) technology, has evolved into SCC- (using a machine learning algorithm)
ML on the back of AI. SCC-ML transmits information of driving
conditions collected by cameras, radars and other sensors to
the ADAS control computer, which in turn implements driver-
tailored SCC using a machine learning algorithm. An encounter
between smart AI and autonomous driving vehicles, and another
testimony to Hyundai staying ahead of the curve.
1)
One of six automation levels defined by SAE International – from Level
Zero to Level 5. Level 2 is a partial automation level where speed and
direction are self-controlled, while Level 3 is a conditional automation
level where traffic signals and traffic flow are recognized
2)
Machine learning-based smart cruise control
Sustainability C.A.S.E 3 ‒ Social values
Stronger together
We are happier when we are part of our community and become healthier
when we help others and share our feelings. Aware of these simple truths,
Hyundai is moving the world together for the safety and well-being of humankind.
Roles & Responsibilities Hyundai’s Approach
Corporations are increasingly called upon to go beyond regular Hyundai laid the foundation for automotive manufacturing in
social contributions to play a role worthy of a global corporate Korea, because we understood the nation’s need for transportation
citizen of late. In the same context, non-financial factors, such means. Today, we go beyond Korea as a global auto maker to
as environment, social, and governance (ESG), have become engage in diverse community activities that the world needs.
corporate investment indices. As such, many advanced global In particular, we are active in the five major areas of our social
companies are taking social value creation seriously and looking contribution activities – eco-friendly, mobility innovation, traffic
for better ways to grow with society in a sustainable manner. safety, future generation, and community. In addition, we support
Companies that help improve social and economic issues while the UN’s Sustainable Development Goals (SDGs), helping bring
creating positive social impacts are changing the world for the to reality the values of innovation, communication, and growth
better. throughout the globe.

Making change, together.

As cooperation grows, so does the limit of possibilities. The joining of differences
in kind often leads to results beyond expectations, making us grow further.
Hyundai cooperates with diverse parties in various areas and creates new social
values. In 2019, we carried out an upcycling collaboration project in defiance of
physical and social stereotypes, spreading the power of challenging the norm and
convergence.
An exhibition hall turns to eco bags

At the 2019 FIFA Women’s World Cup held in France, from June
14 to July 7, as the official sponsor of the World Cup, Hyundai
carried out the “True Passion” campaign in honor of the passion
of woman footballers who have overcome prejudices around
the world. As part of the campaign, we opened the FIFA World
Football Museum in June at the Nelson Mandela Park in Paris in
collaboration with FIFA World Football Museum.
When Mia Hamm was growing up with a club foot, few would
have said yes to a question speculating about her chances of
becoming good at any sport. The football museum highlighted
her story of overcoming the birth defect to reach world stardom,
as well as the passion of other female players in the face of
social prejudices and stereotypes, the history and significance of
woman’s football, and diverse content about the 24 participating
nations. Some 28,000 people visited the museum during the
World Cup, rooting for the female players.
Another highlighting factor was that the exterior of the 150-

FWWC: The Women’s Game
square meter museum was constructed with the material of
which airbags are made. After the World Cup, the structure was
dismantled and the airbag material was reborn into eco-bags
which were then donated to local communities.
Cars turn to fashion

Should we just discard patches of leftover leather car seats? Of
course, they can be reused when automobiles meet fashion. The
statement might sound strange but has been proven possible.
In September 2019, Hyundai unveiled a “Re:Style” collection
under the theme of “Reusing and rethinking new style” together
with the fashion brand, Zero + Maria Cornejo, in New York. By
showcasing clothes made of discarded leather car seats, Re:Style
exemplified the meaning of upcycling, which involves creating
new value by going beyond recycling and changing the concept,
design, use and other aspects associated with recycling.
Eco-friendliness is a major trend in the fashion world as well.

With consumer trends valuing fabrics produced in an eco-
friendly and ethical manner, including material types and
manufacturing processes, public and consumer interests in
upcycled clothing are growing fast. Jumpsuits made of black,
dark beige, and white discarded leather car seats and tote bags
of discarded car airbags are new artwork created thanks to the
striking harmony between the dynamism of Hyundai and the
trend-setting creativity of Zero + Maria Cornejo. Hyundai also
held a second Re:Style in Beijing in November in cooperation
with Reclothing Bank, an eco-friendly Chinese brand.
2019 Hyundai Re:Style
Eco-friendliness turns normal

For Hyundai, eco-friendliness is not only a global trend but also
part of daily life. This explains how eco-friendliness became the
concept of the Year 2020 employee diary. The cover of the diary
is made of a leather left over from production of car seats or up-
cycled from old car seats, while the pages are of eco-friendly
paper. Used daily by all employees, the eco-friendly diary is
contributing to form and internalize a company-wide consensus
on the eco-friendly brand image, and to highlight Hyundai’s
brand value promoting conservation of the environment as well
as positive social and environmental values.
Amplifying change, together.

Social enterprises aim to build a better society and even generate economic value
by solving social and environmental issues. Social enterprises pursuing such goals
numbered 2,435 in Korea alone as of 2019. In addition, impact investment which
aims for the growth of social economy ecosystems is steadily increasing. Hyundai
supports the healthy growth of the social economy through various methods, such
as establishing and investing in social enterprises and fostering social innovators
as well as amplifying the positive changes that they create.
H-OnDream Social Enterprise Startup

Audition draws the UN’s attention
H-OnDream Social Enterprise Startup Audition (H-OnDream)
is a program through which Hyundai works with government
agencies and civic societies for the purpose of discovering and
nurturing promising social enterprises. Startups that H-OnDream
has helped become a fully established social enterprise since
2012 number 232, and the social jobs that these enterprises
have created total 1,420. Social enterprises that have grown with
H-OnDream sustain their operations running projects related
to the UN SDGs, such as unemployment and housing, thereby
delivering a positive impact on society. From its simple start as a
startup support program, H-OnDream has evolved into a talent-
nurturing social contribution platform that identifies and fosters
the sustainable innovators of our society.
232 1)
Number of social enterprises fully

Such efforts and outcomes have attracted the UN’s attention. In
established through H-OnDream
June 2019, Hyundai was invited to speak at the UN Social and
Solidarity Economy Conference held in Geneva, Switzerland.
Shared at the prestigious event was information about the
economic and social outcomes of H-OnDream’s contributions
1,917
since 2012, as well as the importance of multilateral Number of social jobs created
collaborations, including governments, public organizations, through H-OnDream
and civic societies. Pursuing social solidarity, where everybody
develops a sense of ownership of society and helps solve social
issues, Hyundai will take the lead in creating a sustainable social 339%
enterprise ecosystem. Sales growth after receiving
support form H-OnDream
H-OnDream Social Enterprise Startup Audition
1)
Excluding double support
CSV Activities by Area * As of December 31, 2019
Did you
know?
H-Social Creator meets
the future social innovators of India The First Step of a “Second Baby Step”
H-Social Creator is Hyundai’s leading CSV activity, fostering For Junbeom Park, a member of Korea’s national para-athlete archery team, confined
by an auto accident to a wheelchair, standing up and taking a few steps to hug his
college students passionate about solving social issues and
mother remained impossible for many years. However, with the help of a medical
possessive of creative ideas into social innovators armed with robot created by Hyundai using its wearable robotics technology, Park got out of
practical problem-solving skills. It began as a college student the wheelchair and walked slowly into the arms of his mother. There are no limits
communication project in 2015 and grew into the nation’s to Hyundai’s advanced technologies. For pains, physical and emotional, even when
leading college student social innovation program. In 2019, the a thought of ways to overcome is too much to bear, Hyundai will step up with
program expanded its reach by including youths in India. technological solutions to move forward, together.
“H-Social Creator India” was held in September 2019 in five

major cities in India, including Delhi, Mumbai, Pune, Bengaluru
and Chennai. It attracted the participation of 1,400 college
students hoping to improve the future of India. Of some 200 ideas
submitted on the three themes – traffic safety, the environment,
and clean India – the two final winners were chosen. One is about
adjusting headlight brightness in the interest of helping the drivers
to better observe oncoming vehicles, and the other is about
extracting enzymes from wastes for industrial use. To participants [Official Hyundai Brand Campaign] Because of you – 13:08 Seoul
of the winning ideas are awarded investment funds as part of
Hyundai’s effort to encourage Indian youths to help solve social
issues facing their communities.
“The Quiet Taxi”

Where Sounds Are Delivered Without a Sound
1,400+ What would you do if the driver of a taxi you got in is hearing
impaired? Hyundai features a technology that overcomes
prejudices. “The Quiet Taxi” is a realization of the idea that
Number of participants in
won the Grand Prize at the 2017 R&D Idea Festival. The
H-Social Creator India in 2019
advanced driver assistance system, based on the idea that
the hearing impaired are relatively more sensitive to sight
200+ and touch, senses sounds on the road via audio sensors,
differentiates the sounds using AI, and delivers relevant
information to the driver using a heads-up display and
Of some 200 ideas submitted,
LED lights, thus enabling the hearing impaired to drive.
10 were selected as finalists
Hyundai anticipates and supports greater freedom in
mobility for the hearing impaired.
20,183,593 The Quiet Taxi
PR effects, worth of INR 20 million (KRW 323 million)

generated through 117 cases of media exposure
* INR 1 = KRW 16 Hyundai | H-Social Creator Program ‒ Journey So far

Sustainability C.A.S.E 4 ‒ Empowered employees
What makes you move?

A company’s creative innovation and relentless challenges are impossible without
passionate and capable employees. Together with global talent changing the world,
Hyundai is ushering in a world of unlimited possibility.
Today & Tomorrow Hyundai’s Approach
In the Fourth Industrial Revolution era, companies view people as Hyundai fairly selects best-in-class talent based on its healthy
a source of inspiration and innovation. For today, the outcome of organizational culture, helps employees develop job skills to their
strategic investments depended largely on innovative ideas rather than lifecycle, and strives to build a work environment optimized to
capital as in the past, and the innovativeness of ideas is predicated help them unlock their full potential. We also support employees
on the capabilities of employees. The success of many innovative in their efforts to achieve an optimal work-life balance. Higher
companies lies in the sound management of human resources, employee satisfaction and productivity stemming from company
through which talent is identified and developed, as well as in an trust and support vitalize employee passions for work and life
organizational culture that encourages employees to challenge as well as motivate them to develop an unlimited sense of
conventional thinking. As such, companies are focused on hiring the responsibility toward customers, which in turn drive sustainable
best qualified, fostering creative and adaptive talent, and building a growth for the company and society.
horizontal organizational culture that thrives in communication.

In 2019, Hyundai improved our organizational culture and work systems with a particular focus on “empowerment” by giving employees
greater autonomy and authority, for they are our biggest asset and growth engine, and on “communication” to promote sound growth and Did you
cooperation. We also strived to build a sound organizational culture by changing how we think and work. These efforts have resulted in know?
changes, small and big, within the organization and increased the overall competitiveness of the company.
Managing My Time, My Way!
It is 8 am on a bright sunny day.
Manager A decides to go to work early as he wants to sit by the window
today and has a plan on volunteering for community service after work.
He chooses a seat slot on the seating status board1), takes his computer
out of his personal locker, and goes to the selected window seat.
At 10 am,
Senior Manager B comes after dropping off her child at the on-site
childcare center2).
At 11 am,
they get together and hold a video conference, and then have a lunch3)
ordered online. In the afternoon, they focus solely on their respective
work, without any face-to-face briefings or meetings.
At 4 pm,
after emailing the content of the morning meeting to other team
members as well as his team leader, Manager A says goodbye to Senior
Manager B and heads for the location where he and his volunteer club
members are to meet for community service. Having responded to
Manager A’s goodbye with a smile, Senior Manager B stays focused on
her work until 6 pm when she is to pick up her child.
It is another normal day at Hyundai where employees

manage their work hours themselves.
Widening the breath of autonomy

Three things disappeared from Hyundai in 2019 – a dress code Employee empowerment enhances employee engagement and
mandating a suit and a tie, fixed working hours, and office organizational productivity, while also contributing to improve
arrangements designated by work type and rank. Hyundai had the quality of the life of individual employees. Invigorated by
allowed casual business dress attire for select departments increased authority and a clear sign of trust in their abilities,
in 2017 and expanded the dress code corporate-wide two our employees lead organizational changes and growth with
years later. The new flexible work hour system, which allows a heightened sense of responsibility and dignity. Hyundai
employees to come to work any time before 10 am and to employees are manifesting their capabilities to think creatively
leave any time after 4 pm, was also expanded to include the and passionately for challenges with the mindset not of a small
headquarters, research centers, and plants. Work spaces have part of a big organization but of a startup founder.
also changed. The open office system, which began as a pilot
project at the main office headquarters in July, has created 1)
A pilot project carried out at select headquarters departments in 2019
a bright, warm interior based on employees’ ideas. The new 2)
On-site childcare centers have been in operation since 2013 for children of married
system has also brought such employees’ hopes to reality as female and single-parent employees
3)
a bigger space where any employees can freely work and rest Lunch delivery services are provided in consideration of employee health diet and
convenience
and a variety of personal spaces employees can choose to their
personal taste or job requirements. Building a Flexible Workforce
Did you
know?
Adding depth to communication

“What is Hyundai Motor Group’s future strategy?”
“How do you relieve work stress?”
At the Town Hall Meeting held in October 2019, some 1,200

employees freely asked questions one after another to
Executive Vice Chairman Euisun Chung. The theme of the
meeting was “Making Changes, Together” after the March
meeting about the dress code for work and the May meeting
about fine dust reduction. The participation of the Group’s top
leader in the October meeting elevated the Town Hall Meeting
into a greater communication forum. Executive Vice Chairman
Chung attended the meeting wearing casual cotton pants
Selfies on Employee ID Cards? and sneakers without a tie. He engaged in a dialogue with
A neat hair style, a dark suit, and an awkward smile. employees and shared his thoughts on the future direction
Why do all employee photos on corporate ID cards look in which the company was headed. Executive Vice Chairman
the same? As a uniformity in appearance discourages Chung taking selfies with employees after the event shows that
independent thinking, Hyundai has implemented a small a flexible organizational culture is taking root at Hyundai.
yet delightful change. In addition to rules regarding the
dress code, work hours, and seating arrangements, rules Hyundai recognizes that the key to successful cooperation
have been eliminated on personnel profile pictures, as
and connection is communication. Accordingly, in 2019
long as the picture clearly shows the face of the person.
Everything else is up to his/her idiosyncrasies, including we facilitated Town Hall meetings, where employees
the choice of cloth, background, facial expressions, and freely communicate with one another on major pending
pose. Diverse profile images are allowed to show their issues, strengthened “Hyundai Forest”, an internal online
diverse taste and preferences in the form of selfies, communication channel, and opened “H-T.M.I”, an official
vacation photos or something more creative. A delightful recruitment YouTube channel run by the HR Department. As the
change that keeps employees aware every day that they
last three letters of the name stand for “too much information”,
are an integral part of a culture that promotes autonomy
and creativity indicates a truly open organizational
the channel provides an overflowing amount of diverse, up-
culture. to-date information on employment and career opportunities
at Hyundai. As these efforts indicate, Hyundai communicates
frankly with present and future talent, shares information with an
Official recruitment YouTube channel “H-T.M.I” open mind, and always seeks a better direction for innovation.
Even today, when diverse values and perspectives intersect,

Hyundai’s goal remains firm. Even in the complex corporate
environment, Hyundai’s innovation drive points toward one place.
We are focusing our competencies and passions on generating

social value for a better future of our society, along with creating
economic value which is our fundamental corporate role.
We will continue our “progress for humanity” with the goal of
providing freedom of movement to everyone, connecting people
with quality time, and improving the daily lives of all people.
124
Thanks to Ahn Kang Kim Dong Wook Seon Hee Soo Cheong Jae Joon Lee Jin Ah Lee Min Ju Kim Seung Ho Cho Won Jin Kim
Ba Mi Kim Dong Woon Jung Hee Tae Kim Jae Pil Kim Jin Kyung Kim Min Ok Park Seung Gyu Lee Won Jun Choi
(In alphabetical order) Beong Hoon Song Duk Hwan Kang Ho June Park Jae Woon Hwang Jin Neong Huh Min Seok Choi Seung Man Kang Woo Ram Yang
Beom Hee Lee Eun Ji Lee Ho June Lee Jang Ho Kuk Jin Seok Huh Min Soo Song Seung Tae Kim Woo Young Son
Bo Gon Go Eun Jin Seok Hye Seong Kwon Je Hyeong Cheon Jin Seon Hwang Min Sung Yu Seung Yeon Lee Won Hong Lee
Bo Gyeong Kim Geon Hyeok Park Hye In Kwon Jeong Ah Choi Jong Bok Lee Na Young Yoon Seung Yoon Choi Won Hyung Lee
Chan Soo Chang Geun Woong Kim Hye Ji Lim Jeong Cheol Lim Jong Hak Yi Nam Soo Han Shin Geuk Kim Won Seok Lee
Chan Hong Cheong Gi Seong Lee Hye Won Kim Jeong Ho Moon Jong Jin Bae Sang Bom Lee So Yeon Bae Ye Chan Kim
Chang Ho Yoon Gi Yeong Cheong Hyo Geun Park Jeong Ho Noh Jong Ok Kim Sang Bum Kim So Young Park Yong Hwan Song
Chang Hoon Song Gil Hoon Kim Hyo Il Park Jeong Hye Kwok Jun Hee Han Sang Cheol Park So Hyun Cheong Yoon Jeong Hwang
Chang Seob Lee Gil Woong Bae Hyoung Sub Kim Jeong Je Lee Jun Gu Cheong Sang Yeol Baik Soo Hyang Lim You Hwan Kim
Chang Soon Choi Guk Yeon Hwang Hyun Ho Suh Jeong Min Lee Jun Ho Kim Seo Yoon Park Soo Hyun Han You Jin Chang
Cheol Hwa Cheong Gwang Ho Cheong Hyun Jae Kim Jeong Moon Jin Jun Ho Song Seong Hwan Kim Soo Young Kim Young Bong Kim
Cho Rong Maeng Gyeong Ji Kim Hyun Ji Choi Jeong Yeon Kim Jun Hwa Cheong Seong Jung Noh Soon Sang Hong Young Cheol Kim
Choong Hwan Cheong Gyeong Min Cha Hyun Joon Kim Ji Han Son Jun Sik Kim Seong Mo Lee Suk Gyu Choi Young Geun Lee
Choong Sik Cheong Gyeong Yong Lee Hyun Joon Yook Ji Hwa Mok Jung Ho Park Seong Bo Sim Sung Gyu Park Young Gwan Chang
Da Hee Cheong Gyoon Seok Park Hyun Soo Lee Ji Hyoung Lee Jung Pil Kuk Seong Han Cheong Sung Hee Cho Young Soo Yoon
Dae Il Cheon Gyu Hyeon Son Hyun Tae Noh Ji Hoon Kwok Ka Yeon Noh Seong In Huh Tae Gil Lim Young Wook Cho
Deck Su Ho Gyu Sik Yoon Hyun Woo Kang Ji Hoon Lee Kwang Hyun Pyun Seong Mok Kim Tae Hyeon Cheon Yun Sun Lim
Do Hoon Kim Ha Kyung Kim Hyung Joon Kim Ji Hye Jang Mi Dol Yoo Seong Won Kim Tae Jeong Sin
Dong Hoon Kang Hae Min Lim Hyung Ki Kim Ji Hyeon Yoo Mi Jin Na Seong Won Ryu Tae Sik Yoon
Dong Il Cheong Hee Je Lee Hyung Seok Oh Ji In Kim Mi Yeon Song Seong Woong Suh Tong Young Kim
Dong Geon Park Hee Jun Kim Hyung Seok Yoon Ji Man Lee Min Ho Lee Seung Bae Kim Wan Seung Kim
Dong Seong Kim Hee Kyeong Kwon Jae Hyeon Yoon Ji Yeon Lee Min Kee Lee Seung Cheol Sin Won Jung Kim

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Road to

to the related web pages. Instagram Twitter

At the center of Hyundai Motor Company’s management philosophy is “humanity”.

Hyundai is now going beyond being an automobile manufacturer to become a mobility

Hyundai’s Brand Vision

Future Mobility Vision

Smart Mobility Service and Technology

Dow Jones Sustainability Indices

* As of the end of 2019; Based on K-IFRS consolidated financial statements

2019 Best-selling Models

Elantra (Avante) Tucson Accent Sonata Santa Fe

458,881 492,165 304,748 256,433 211,902

COVID-19 Solidarity and Support

The COVID-19 pandemic is threatening the economic and

Hyundai is helping the world overcome the crisis by conducting

Amid the unprecedented challenges of COVID-19 pandemic, Hyundai is

Caring for #Humanity

Major activities supporting global efforts to

Caring for #Humanity #online

Caring for Partitions were set up in the company cafeterias

#Employees and special meals were provided to strengthen

500 KRW million +

A pandemic, brought on by COVID-19, is sweeping through the entire world, leaving

Caring for #Customers

“We are safe” campaign

Materiality Analysis Process

• Benchmarking of other companies in the same industry

Materiality analysis results

Mid- to Long-term Goals 8. Reducing air pollution 27. Hazardous substances

Social impacts (1–5 points)

Material Issue Management

Supporting win-win growth

Building a flexible workforce • Improve recruitment and HR systems

• Build the IONIQ Forest

Global CSV activities

2.5 Contributing to the Development

1 Pilot service for Shucle,

1 Establishing Mocean, a smart mobility

Cutting-edge In-vehicle Technology, Enabling Seamless Connectivity

2.1 Smart Mobility-based

HYUNDAI CRADLE – Tel Aviv

1, 2 ZERO1NE Day, a grand festival of

using a collaborative robot for maintenance

Small overlap | Oblique crash Rear offset crash

Frontal offset crash Side impact crash

62km/h, 27° side MDB2)

Establishment of a Brand Vision for Sustainability

Our System User We build familiar and friendly channels by providing

Uncompromised Sustainability Application

2.4 Building a Healthy Corporate

2.5 Contributing to the Development

1) 1 H-ear, an open customer

- Smart Mobility Service 1st place at 4 segments2)

Service system Details

Performance & Commitment

Strengthening Vehicles’ Eco-friendliness

Mid- to Long-term Goals

Mid- to Long-term Goals

2.1 Smart Mobility-based Customer

• Benchmarking of other companies in the same industry

Mid- to Long-term Goals 8. Reducing air pollution 27. Hazardous substances

Building a flexible workforce • Improve recruitment and HR systems

• Build the IONIQ Forest

2.5 Contributing to the Development

1 Pilot service for Shucle,

1 Establishing Mocean, a smart mobility

2.1 Smart Mobility-based

1, 2 ZERO1NE Day, a grand festival of

2.4 Building a Healthy Corporate

2.5 Contributing to the Development

1) 1 H-ear, an open customer

2.1 Smart Mobility-based Customer

2.2 Pursuing Eco-friendly Value

2.2 Pursuing Eco-friendly Value

2.3 Creating a Sustainable Average life span of

2.5 Contributing to the Development

2.3 Creating a Sustainable Overhauling the internship program

2.5 Contributing to the Development Evaluation

2.2 Pursuing Eco-friendly Value

• Build diverse environments required to support employee growth

2.3 Creating a Sustainable

Sustainability Magazine 1 Improved pedestrian safety and mobile

2.1 Smart Mobility-based Customer Vision Progress for Humanity

2.2 Pursuing Eco-friendly Value

1 Brilliant Kids Motor Show –

1 Preserving the Petra World Heritage

1 Hyundai Safe Road Traffic Safety

1 2nd Hyundai Green Zone China Project

Local Communities • Donated 6,030 air-purifying plants to elementary schools

• Improve mobility convenience for the underprivileged