Hyundai Rotem Earns 'Silver Medal' in Global ESG Evaluation

EcoVadis, a Global ESG Agency, Upgrades Rating by One Level from Last Year

Transparent Management Committee Strengthens Internal Controls

Efforts Underway to Build a Sustainable Supply Chain

Hyundai Rotem announced on June 26 that it has received a Silver rating for the first time from EcoVadis, a global environmental, social, and governance (ESG) evaluation agency. The Silver rating is awarded to companies ranked within the top 15% overall.

EcoVadis is an evaluation agency that assigns ESG ratings using data from the past three years for more than 130,000 companies across approximately 180 countries. Automotive manufacturers worldwide use EcoVadis's ratings as a key indicator when assessing the sustainable management capabilities of their parts suppliers.

Exterior view of HyundaroTem headquarters in Uiwang. HyundaroTem

Hyundai Rotem demonstrated its sustainable management performance by achieving improved results across all four evaluation categories (environment, labor and human rights, ethics, and supply chain) compared to the previous year. In particular, the Transparent Management Committee, which has been in operation since 2020, was found to have had a positive impact on the improvement of the ethics category.

To ensure independence, the Transparent Management Committee is composed entirely of outside directors. The committee reviews major management issues such as internal transactions between group affiliates, the implementation status of the fair trade compliance program (CP), and guarantees related to the protection of shareholder rights. The committee also examines key ESG-related risk factors such as supply chain sustainability, and supports transparent corporate decision-making by disclosing its activities in the corporate governance report.

Hyundai Rotem places emphasis on internal programs for all executives and employees, including the implementation of ethics and compliance training, achieving a 100% completion rate. In 2024, the company received a 'AA' (Excellent) CP rating from the Korea Fair Trade Mediation Agency under the Fair Trade Commission, recognizing its internal control efforts.

For the supply chain category, Hyundai Rotem’s efforts to create a sustainable procurement environment together with its partners were positively reflected. The company conducts ESG assessments of its partners to encourage transparent transactions and responsible management across the entire supply chain. In 2024, Hyundai Rotem also signed agreements to supply eco-friendly parts with more than 1,300 partners.

In the labor and human rights category, the company received positive evaluations for its comprehensive occupational safety and health management system and institutional foundation. The Board of Directors reviews safety and health issues, and the company has appointed a Chief Safety Officer (CSO) at the executive level, as well as a general manager for safety and health management at each regional headquarters. Continuous safety and health training and site-specific guidance are also provided to workers, helping to establish a comprehensive safety inspection system throughout the supply chain.

The environment category also received high marks thanks to achievements such as securing new records of renewable energy use through solar power facilities and reducing waste and greenhouse gas emissions through environmental impact analysis by product. As part of these efforts, Hyundai Rotem received the Presidential Citation at the 19th Korea Circular Economy Leading Enterprise Awards, hosted by the Korea Environment Corporation under the Ministry of Environment in September last year.

Meanwhile, Hyundai Rotem had maintained a 'Bronze Medal' rating from EcoVadis for four years from 2022 to last year, but was upgraded by one level this year. Going forward, the company plans to further enhance its responsible management both internally and externally by addressing deficiencies in each category, obtaining external ESG certifications, and pursuing participation in international ESG initiatives and agreements.

A Hyundai Rotem official stated, "It is highly meaningful that our independent efforts to establish a sustainable ecosystem have been recognized by a globally credible evaluation agency," adding, "We will continue to do our utmost to fulfill responsible management and earn the trust of not only our customers and stakeholders but also our partners."

This content was produced with the assistance of AI translation services.