Hyundai Motor and Kia Receive Highest Grade in CDP Water Management Category

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company and Kia have received the highest rating in water resource management from the global sustainability management evaluation organization CDP (Carbon Disclosure Project) in 2022.

Hyundai Motor and Kia announced on the 10th that they received the grand prize and excellence award respectively in the water resource management category at the 2022 CDP Korea Awards held at the Glad Hotel in Yeouido, Seoul. In the climate change response category, they received the Carbon Management Sector Honors Award.

CDP is one of the credible indicators evaluating corporate sustainability alongside the Dow Jones Sustainability Index (DJSI). Based on the evaluation results, companies are classified into four stages: Leadership, Management, Awareness, and Disclosure. Within each stage, differentiated ratings such as Leadership A, Leadership A-, Management B, Management B-, etc., are assigned, totaling eight grades. Awards are given in two categories: water resource management and climate change response.

Hyundai Motor achieved the highest score among about 100 domestic participating companies in the water resource management category, receiving the grand prize for the first time since participating in the evaluation. In terms of stages, it maintained the highest level of 'Leadership (A/A-)' for four consecutive years since 2019. Kia received the highest rating of 'Leadership A' for three consecutive years in the water resource management category.

In the climate change response category, both Hyundai Motor and Kia earned the 'Leadership A-' grade and were awarded the 'Carbon Management Sector Honors Award,' given to the top 2 to 4 companies in the industry sector (consumer discretionary). Kia notably maintained the highest level of 'Leadership (A/A-)' for four consecutive years in the climate change response category.

Hyundai Motor received high evaluations for its management activities across the entire value chain, including ▲pursuing the 2045 carbon neutrality strategy ▲continuously expanding the electrified lineup ▲joining RE100 and expanding renewable energy conversion at business sites ▲applying low-carbon eco-friendly manufacturing processes ▲advancing water treatment facilities at domestic and overseas plants and introducing wastewater recycling systems.

Kia was recognized for its mid- to long-term management activities such as ▲pursuing carbon neutrality strategy and joining RE100 ▲expanding renewable energy use ▲continuous investment to reduce energy consumption ▲strict management of discharged water quality ▲establishing a real-time pollutant measurement monitoring system.

Choi Dooha, Executive Vice President of Hyundai Motor’s Management Strategy Division, said, “This is the result of Hyundai Motor’s efforts to strengthen specialized organizations and explore various measures for water resource management and climate change response. We will continue to actively implement greenhouse gas reduction across the value chain and expand the use of renewable energy at business sites.”

Jung Hyun Cho, Senior Executive Director of Kia’s Safety and Environment Center, said, “Kia has established and systematically executed mid- to long-term management strategies along with declarations of carbon neutrality and RE100. We will continue to create a sustainable future through reducing carbon emissions and promoting resource circulation.”

CDP, which started in 2000 with the participation of 35 financial institutions, was entrusted by more than 600 financial investment institutions worldwide as of last year. It requests and evaluates environmental information disclosure related to climate change and water resource management from major companies in each country. As of 2021, over 13,000 companies, representing 64% of the global market capitalization, disclosed information related to global environmental issues through CDP.