Hyundai Rotem Earns Top ESG Rating for 3rd Straight Year, 'A+'

Solar power and internal carbon pricing introduced at Changwon plant
Supply chain management through ESG assessments of 150 partner companies
Governance transparency strengthened with establishment of independent board of directors

Hyundai Rotem received the highest rating in Korea's ESG (environmental, social and governance) assessment for the third consecutive year.

Hyundai Rotem's Uiwang headquarters. Hyundai Rotem

Hyundai Rotem said on the 12th that it received an overall A+ (very good) rating in the "2026 ESG Evaluation and Ratings Announcement for Listed Companies" released by the Korea Institute of Corporate Governance and Sustainability (KCGS). The company has maintained the highest rating for the third year in a row since first receiving an overall A+ in 2024. It said it achieved this result despite unfavorable conditions in the environmental and social categories due to its business structure, which includes defense.

In the environmental category, a notable achievement was that the company began generating renewable energy itself. In December last year, Hyundai Rotem completed construction of a 640 kW solar power facility at its Changwon plant, a key production site.

It also introduced an internal carbon pricing system around the same time. Under the system, when reviewing new investments of KRW 500 million or more, the company calculates the potential carbon emissions from each investment as a cost and factors them into its decision-making. The company amended its investment budget management regulations to formalize the system.

Water quality indicators also improved. Last year, the Changwon plant's biochemical oxygen demand (BOD), total organic carbon (TOC) and suspended solids (SS) levels fell by 11%, 14% and 39%, respectively, from the previous year.

Supply chain management is at the heart of the social category. Last year, Hyundai Rotem established a supply chain sustainability management policy and put in place a system covering risk prevention and monitoring, as well as ESG training for partner companies. In accordance with the policy, it conducted ESG assessments of 150 major partner companies. It carried out on-site inspections of 56 companies requiring improvement, obtained improvement plans from them and is monitoring their implementation.

The company also strengthened its management of overseas partners. It revised its standard overseas goods purchase contract to include provisions on human rights, labor, the environment and ethics, in addition to price, delivery schedules and quality. It also disclosed its social contribution targets through 2030.

In the governance category, the company established an independent board of directors through a board resolution in November last year, strengthening the board's independence. In December, it introduced sustainability disclosure regulations to manage ESG-related management strategies, goals and performance. The board regularly reviews matters related to climate change and environmental management.

In June this year, Hyundai Rotem also received a "Silver Medal" rating for the first time from EcoVadis, a global ESG rating agency. A Hyundai Rotem official said, "We will continue to fulfill our responsibilities to build a sustainable industrial ecosystem together with our partners and all other stakeholders."

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