Hyundai Motor Co

Sustainability Governance Structure

Sustainability Management Committee (Under BOD)
The Sustainability Management Committee under the BOD consists of a total of eight directors – seven independent directors, one internal director. It discusses diverse policies concerning practicing sustainability management and maintaining insider trading transparency; implementing business ethics and making ESG performance improvements; and protecting shareholder rights and interests. It also deliberates and decides on strategy, activity, performance, and target plans from a professional perspective. In addition, the Committee discusses major plans and implementation checks related to safety and health, which are becoming increasingly important, as well as supply chain ESG issues. An independent director (Chi-Won Yoon) who is in charge of protecting shareholder rights and interests in the Sustainability Management Committee attends investor meetings in Korea and non-deal roadshows (NDRs) for overseas investors to promote communication between the BOD and shareholders. Investor demands and suggestions concerning ESG are reflected in the company-wide ESG policy and strategy-establishing process.

ESG Committee (C-Level)
Hyundai has established the ESG Committee within the Hyundai Business Strategy Meeting that is participated by the CEO and top management. Top management in each area discuss implementation directions and action plans on ESG tasks and issues, and review the implementation status and major performance. The ESG Committee manages risks by such ESG area as carbon neutrality, resource circulation, protection of human rights, spread of ESG across the supply chain, and social contribution, while also managing and supervising performance improvement activities. In regards to matters identified as matters that require deliberation/approval from the top decision-making body after the review or management/supervision by the ESG Committee, we set them as agenda of the Sustainability Management Committee. Those matters include major pressing risk factors and matters that require improvements because they are aligned with mid- to long-term business strategies.

ESG Council (Working-Level)
Hyundai has formed the ESG Council, consisting of working-level employees per division concerning environmental (E), social (S), and governance (G), including climate change, quality and safety, talent development, social contribution, and ethical management. The ESG Council discusses the ESG implementation direction and plan per division, carries out risk reduction and performance improvement activities, and shares information on pending matters and performance. In principle, the ESG Council is held regularly for the purpose of sharing information on the implementation status and performance of each division. It is also run frequently for ESG information disclosure, response to external assessments, and response to pending issues concerning business.

ESG Planning Team
Pivotal in the planning, managing, and facilitating of ESG initiatives across the organization, the Team's responsibilities include developing an ESG management system, integrating it into the organizational framework, establishing collaborative systems, and managing external communication and disclosures. To advance the ESG management system, it sets ESG management indicators, operates a data platform, and assists in designing ESG key performance indicators (KPIs) for the company's headquarters and divisions. It also identifies areas requiring performance improvements and works collaboratively with the relevant working-level employees to foster enhancement efforts. In addition, the ESG Planning Team manages stakeholder communication by publishing sustainability reports, preparing sustainability-related financial disclosures, and engaging with external ESG rating agencies.

Sustainability Governance Structure

Sustainability Management Committee (Under BOD)
The Sustainability Management Committee under the BOD consists of a total of eight directors – seven independent directors, one internal director. It discusses diverse policies concerning practicing sustainability management and maintaining insider trading transparency; implementing business ethics and making ESG performance improvements; and protecting shareholder rights and interests. It also deliberates and decides on strategy, activity, performance, and target plans from a professional perspective. In addition, the Committee discusses major plans and implementation checks related to safety and health, which are becoming increasingly important, as well as supply chain ESG issues. An independent director (Chi-Won Yoon) who is in charge of protecting shareholder rights and interests in the Sustainability Management Committee attends investor meetings in Korea and non-deal roadshows (NDRs) for overseas investors to promote communication between the BOD and shareholders. Investor demands and suggestions concerning ESG are reflected in the company-wide ESG policy and strategy-establishing process.

ESG Committee (C-Level)
Hyundai has established the ESG Committee within the Hyundai Business Strategy Meeting that is participated by the CEO and top management. Top management in each area discuss implementation directions and action plans on ESG tasks and issues, and review the implementation status and major performance. The ESG Committee manages risks by such ESG area as carbon neutrality, resource circulation, protection of human rights, spread of ESG across the supply chain, and social contribution, while also managing and supervising performance improvement activities. In regards to matters identified as matters that require deliberation/approval from the top decision-making body after the review or management/supervision by the ESG Committee, we set them as agenda of the Sustainability Management Committee. Those matters include major pressing risk factors and matters that require improvements because they are aligned with mid- to long-term business strategies.

ESG Council (Working-Level)
Hyundai has formed the ESG Council, consisting of working-level employees per division concerning environmental (E), social (S), and governance (G), including climate change, quality and safety, talent development, social contribution, and ethical management. The ESG Council discusses the ESG implementation direction and plan per division, carries out risk reduction and performance improvement activities, and shares information on pending matters and performance. In principle, the ESG Council is held regularly for the purpose of sharing information on the implementation status and performance of each division. It is also run frequently for ESG information disclosure, response to external assessments, and response to pending issues concerning business.

ESG Planning Team
Pivotal in the planning, managing, and facilitating of ESG initiatives across the organization, the Team's responsibilities include developing an ESG management system, integrating it into the organizational framework, establishing collaborative systems, and managing external communication and disclosures. To advance the ESG management system, it sets ESG management indicators, operates a data platform, and assists in designing ESG key performance indicators (KPIs) for the company's headquarters and divisions. It also identifies areas requiring performance improvements and works collaboratively with the relevant working-level employees to foster enhancement efforts. In addition, the ESG Planning Team manages stakeholder communication by publishing sustainability reports, preparing sustainability-related financial disclosures, and engaging with external ESG rating agencies.

Not only is Hyundai an instrumental player in Australia's hydrogen association but is also highly involved with two other automotive bodies – the Electric Vehicle Council and the Federal Chamber of Automotive Industries. Scott is similarly Hyundai's representatives on these organisations advocating for our company's position on topics related to future mobility but also providing guidance for how the industry delivers the highest level of consumer safety. Scott's background crash testing cars for ANCAP has come in handy in this regard. The big topic on the policy agenda right now for each of the industry associations is the national EV strategy and the role of vehicle emissions policy within this. From Scott's perspective, the "time is now" for governments to get the EV sector moving. *"Hyundai wants a front row seat at these important discussions so it's my job to ensure we have a voice. We believe that coordinated EV policy is needed to stimulate demand and deliver benefits to all Australians. Not only do I communicate this message through our membership of industry associations, but also with governments directly."* [...] In his government relations capacity, Scott is responsible for the company's engagement strategy across local, state and federal government. The aim of this engagement is primarily to encourage greater progress in eco transport. An interest in the inner workings of government has always been a personal interest for Scott so it made sense when he officially took on this responsibility in 2016. *Scott Nargar with the Tasmanian Minister for Energy and Renewables, the Hon Guy Barnett MP in November 2022* *"I get a kick out of walking the halls of Parliament House in Canberra and engaging with politicians of all persuasions on topics of relevance to the automotive industry. In the last 12 months in particular, I've found there's been a real shift with politicians increasingly eager to understand more about the tech, and with my long career history around cars, I really enjoy providing some education on the technology wherever I can."*

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…] • Announcement of 2045 Net Zero
- Hyundai Motor Company spearheads the effort for sustainability, takes responsibility, and firmly believes that this industry must take aggressive climate action.
- Hyundai Motor Company revealed the group's net zero plan by announcing to become an RE100 member in July 2021, and announced the 2045 Net Zero initiative that focuses on electrification and hydrogen at the IAA Mobility' in September 2021.
- The plan is managed at a corporate level. The implementation plan, which covers all aspects from the supply chain (production and use of vehicles) to clients, is carried out and its outcomes are monitored.

• Major strategy in achieving Net Zero
- (Electrification) Finding ways to reduce GHG after selling vehicles, such as recycling used batteries
- (Hydrogen) Devising personal/commercial FCEV line-ups, the storage, transportation and charging of hydrogen energy, and the production of hydrogen energy

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes