Hyundai Mobis Publishes Sustainability Report... Launches 2,000 Research Projects This Year

[Asia Economy Reporter Kim Ji-hee] Hyundai Mobis announced on the 27th through its sustainability report that it will carry out over 2,000 research and development projects this year. This represents a 16% increase compared to last year and aims to secure future vehicle competitiveness as a sustainable company despite the challenges posed by the COVID-19 pandemic.

In the report, Hyundai Mobis presented three major policies for sustainable management: ▲ securing future new growth engines in core areas such as autonomous driving and electrification ▲ environmentally friendly management that proactively responds to environmental regulations ▲ creating regional social value in cooperation with stakeholders.

To secure future new growth engines, the company plans to conduct 2,007 research projects this year, a 16% increase from last year. The R&D budget is also set at around 1 trillion KRW, which is about a 60% increase compared to five years ago (625.8 billion KRW in 2015). The number of R&D personnel is expected to exceed 5,000 for the first time in history.

Hyundai Mobis participated in establishing a joint venture with Aptiv in the United States last year and made a large-scale investment in Velodyne, a global leader in LiDAR technology. This year, it will further strengthen open innovation. Centered on 'Mobis Ventures' operating in Silicon Valley, North America, and Shenzhen, China, the company plans to expand technological cooperation with overseas startups in the fields of vehicle infotainment and advanced driver-assistance systems (ADAS) this year.

Hyundai Mobis employees are posing for a commemorative photo holding the Sustainability Report published on the 27th. Photo by Hyundai Mobis

Furthermore, as major markets including Korea, North America, and Europe tighten regulations on carbon emissions and energy use, Hyundai Mobis has decided to proactively establish an environmentally friendly response system. It will advance the enterprise-wide energy management system established last year and actively support partner companies in building their own environmental systems. Additionally, by enhancing energy efficiency, the company plans to reduce domestic greenhouse gas emissions by nearly 3% compared to the emission trading scheme allocation target this year.

By 2025, Hyundai Mobis has set a goal to convert its major production plants to solar power generation and energy storage system (ESS)-based operations. This is intended to transform from an energy-consuming entity to an energy 'prosumer' capable of both producing and consuming energy simultaneously.

The company will also continuously strengthen win-win management activities that leverage the characteristics of an automotive parts company. Recently, it provided rapid emergency management support by supplying parts at discounted prices to over 1,000 parts dealerships nationwide struggling due to COVID-19 and extending the maturity of due notes.

Hyundai Mobis’s sustainability report marks its 10th year since its first publication in 2010. It is published to share management performance in economic, social, and environmental sectors with key stakeholders based on stakeholder surveys. This year, among a total of 42 management issues, three core themes were selected through importance evaluation: securing future new growth engines, environmentally friendly management, and creating regional social value.