Recognition as a Leader in Hydrogen Mobility and Other Eco-Friendly Products
[Asia Economy Reporter Kim Heung-soon] Hyundai Rotem announced on the 28th that it received an excellent grade of A in the '2021 Listed Companies ESG (Environment, Social, Governance) Evaluation and Rating Announcement' released by the Korea Corporate Governance Service (KCGS). It received an A in the environmental sector, A+ in the social sector, and A in the governance sector, raising its overall rating from B+ last year to A.
The ESG rating has been evaluated by the Korea Corporate Governance Service since 2011 for domestic listed companies. It is used as an indicator to promote sustainable management of companies and to help capital market participants recognize the level of ESG management of companies.
Hyundai Rotem has promoted management activities that minimize environmental impact, such as building a hydrogen value chain and producing eco-friendly products. It is the first heavy industry company in Korea to declare support for the TCFD (Task Force on Climate-related Financial Disclosures) and is establishing business sites with energy-efficient low-carbon processes. Next year, it plans to expand eco-friendly investment costs by 55% compared to this year. This year, it also established a dedicated ESG organization to accelerate sustainable management.
Hyundai Rotem is focusing on eco-friendly product development and technological innovation centered on the hydrogen business across all its divisions. In the Rail Solution and Defense Solution divisions, it is developing hydrogen fuel cell-based mobility such as hydrogen electric trams and defense drones. The Eco Plant division provides integrated solutions for hydrogen energy production infrastructure and is working on building a hydrogen society ecosystem through localization of key facilities.
Additionally, it actively discloses major management-related issues and strengthens social contribution activities such as cooperation with local communities and mutual activities with partner companies. Furthermore, to secure the independence of the audit committee, all members, including accounting and financial experts, are composed of outside directors, and a compensation committee was established this year to ensure transparency in board compensation decisions.
A Hyundai Rotem official said, "We will do our best to establish a high-level ESG management system based on sound governance."
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