Kia Motors Sustainability Magazine 2012 Special Feature Resetting Responsibilities Rethinking the meaning of responsibility Review: Challenges & Opportunities Discovering new opportunities and responsibilities amidst global challenges Reduce, Reuse, Recycle Renovating for Energy Minimizing use, maximizing reuse Efficiency Technological advances for enhanced efficiency Reshaping the Future Reinventing Ourselves Automotive evolution toward zero Casting new light on possibilities and emissions competencies Contents Sustainability Overview 02 Kia around the World Contact Us 04 CEO Message 18 Special Feature Review: Challenges & Opportunities Special Feature Supervisory Board of the Sustainability Economy Society 06 06 Resetting Responsibilities Gui-Hyun Choi Min-Su Park Suk-Jin Choi In 2012 MOVE, Kia Motors’Director, Management2011 activities Strategy Group and Manager, Management Strategy Team Assistant Manager, Human Resources Administration Team Goan-Soo Shin Dae-Jung Kim Dong-Woo Shin achievements are organizedGeneral Manager, by key CSR global Environmental chal Management- Team Deputy General Manager, Management Strategy Team Assistant Manager, Procurement Planning & Strategy Team lenges and issues. ‘Review:Chang-Muk Challenges Choi & Op- Seok-Kee Baik Hyun-Seok Chae General Manager, CSR Environmental Management Team General Manager, Global Planning Team Deputy General Manager, HRD Planning Team 14 Coordination & Regulation portunities’ outlines ourKeuk-Jin commitment Bang to corpo- Jong-Lyoul Jang Nam-Kyu Kim rate citizenship and ourDeputy plans General and Manager, efforts CSR Environmental aimed Management Team Deputy General Manager, Brand Strategy Team General Manager, Customer Satisfaction Planning Team 16 Responsible Communication Jong-Tae Lee Hyung-Joo Choi Sung-Hyun Ahn Despite the uncertain business environment, Kia Motors has at being a responsible autoDeputy Generalmanufacturer. Manager, CSR Environmental Management Team Manager, Accounting Team Deputy General Manager, Supplier Cooperation Team 18 Review: Challenges & Opportunities Kye-Hwan Roh Dae-Hie Kim Se-Chun Lee been able to continue growing because we did not lose sight of Manager, CSR Environmental Management Team Deputy General Manager, International Accounting Team Staff, Human Resources Administration Team 24 Reinventing Ourselves our core vision even as we pursued innovation. Our most funda- Hyun-Jin Cho Yoon-Soo Han Seung-Chul Lee Assistant Manager, CSR Environmental Management Team Manager, Securities Finance Team Assistant Manager, Human Resources Support Team mental goal is to improve human life through cars. In 2011, we Sang-Yul Park So-Young Lee Ji-Youn Jung revamped the principles that had enabled us to move forward Staff, CSR Environmental Management Team Assistant Manager, Domestic Product Marketing Team Assistant Manager, Human Resources Recruiting & Planning Team Yong-Been Kim Sun-Kyoo Han Youn-Gyo Seo and reset our responsibilities by envisioning the future we need Staff, CSR Environmental Management Team Manager, Quality Planning Team Manager, Production Education & Training Team Agenda: Technologies for Sustainable to build. Houn Shin Deputy General Manager, Vision Strategy Team Mobility Eui-Youl Kim General Manager, Domestic Digital Marketing Team 30 Reshaping the Future Won-Je Chung Assistant Manager, Quality Strategy Team 36 Renovating for Energy Efficiency 40 Green Lineup Environment Reference materials Design supervision Jong-Tae Kim Myung-Eun Song Hye-Jin Cho Agenda: Energy Use & Climate Change Deputy General Manager, Production Innovation Team Staff, Domestic Communication Team Assistant Manager, Brand Communication Team Yong-Deuk Lee Jae-Woo Kim 44 Reduce, Reuse, Recycle Staff, Safety & Environment Team Manager, Culture Public Relations Team Ki-Dong Lim Assistant Manager, Safety & Environment Team Dong-Keun Choi Deputy General Manager, Safety & Environment Team Kyung-Nam Kim Agenda: Expanding Shared Value & Research Engineer, Eco-technology Research54 Team Yu-Jin Bae English Editing Communication Research Engineer, Eco-technology Research Team Gi-Seong Lee Michael Choo Rethinking Customers Senior Research Engineer, Energy Efficiency Engineering Team 54 General Manager, Overseas Communication Team Jong-Hyuk Yoon 58 Fostering Diversity Part Manager, Powertrain Project Management Team. Wan-Seung Kim 62 Greater Collaboration Research Engineer , R&D Strategy Team 58 C C+ B B + A A + Report on: Report on all criteria listed for Same as requirement for Level B GRI Application Level Agenda: Encouraging Equality & Ability 1.1 Level C plus: 2.1~2.10 1.2 Fostering Diversity 3.1~3.8, 3.10~3.12 Report Externally Assured 3.9, 3.13 Report Externally Assured 64 Fulfilling Responsibility 24 4.1~4.4, 4.14~4.15 4.5~4.13, 4.16~4.17 Kia Motors’ 2012 sustainability The driving force behind Kia Motors’ growth is creative thinkingreport thatwas prepared challenges in accordance conventions Not Required Management Approach Disclo- Management Approach Disclo- with the ‘GRI G3 Guidelines.’ Kia sures forand each leads Indicator Categoryto innovation. Withsures for corporate each Indicator Category institutions and culture that recognize diversity, 36 Motors’ self-rating was A+ as per the Reinventing Ourselves we strengthen the foundation for growth and share the value‘GRI created Application with Level our Table.’ employees. The A+ rating received third-party assurance Appendices In 2011, Kia Motors sold around 2.54 million ve- Report on a minimum of 10 Per- Report on a minimum of 20 Report on each core G3 and Sector by the Institute for Industrial Policy Renovating for Energy Efficiency formance Indicators, including at performance Indicators, at least Supplement* Indicator with due regard Studies (IPS). least one from each of: Economic, one from each of Economic, En- to the materiality Principle by either: a) 70 Data Sheet / About This Report / hicles worldwide, which represents 19% year- Social and Environmental. vironmental, Human rights, Labor, reporting on the Indicator or b) explain- Society, Product Responsibility. ing the reason for its omission. on-year growth, while posting sales revenue of A car’s fuel efficiency and CO2 emissions are inversely Independent Assurance Statement / GRI Index proportional. That is, the higher the fuel efficiency is, the Rethinking Customers 43 trillion won and operating profit of 3.5 trillion Reader’s Guide lower the CO2 emissions. Using technologies to raise fuel Publication Information / Contact Us won. Thus, 2011 was the third year in a row that With customer needs asPublication our utmost date Maypriority, 8, 2012 Kia (annual) Motors | Publisher con- Kia Motors +82-2-3464-1114 | Publications director Hyoung-Keun (Hank) Lee | Planning & design Intonation +82-2-3144- efficiency, Kia Motors makes affordable and green cars to tinues to enhance the0133 safety | Printer of our Young-Eun cars and Printing the +82-2-2274-9250 quality of Icons are used to mark those sections for which additional information in available. we surpassed our own record-shattering perfor- provide our customers with a wider choice and to contrib- mance of the previous year. our services. ute to sustainable development. This report (2012 MOVE) Website Terminology or additional information At a Glance Kia 43 Trillion Won 2.54 Million Vehicles 45,312 Persons around the World Sales revenue (IFRS-based) Global sales volume No. of employees (domestic & overseas combined) Since our founding in 1944, Kia Motors has grown at a stellar pace into a leading global automaker boasting 19 overseas subsidiaries and a distribution network comprised of 4,485 dealerships in 149 countries with annual worldwide sales Kia Motors Corporate volume of over 2.5 million vehicles. Through continuous Headquarters R&D and investment, we have come to possess a full lineup Namyang R&D of vehicles spanning all segments and types, including Center Sohari Plant passenger cars, RVs, commercial vehicles, and buses. With production facilities and R&D and design centers around the Hwaseong Plant world, we have solidified our foundation as a competitive player in the global market. Kia Motors will fulfill our corporate social responsibility through continued exchanges Gwangju Plant and engagement with society. We will strive to safeguard a sustainable future by protecting the environment and realize sustained growth by creating greater value for all of our stakeholders. No.10 149 Countries 2.7 Billion Dollars 27 Trillion Won 21.2 Billion Won 85 g/km No. 10: global sales volume Global operations Brand value (Interbrand, 2011) Market capitalization Social investment CO2 emissions of European 1.1 No. 5: Hyundai Motor Group’s combined global (as of Dec. 31, 2011) (domestic worksites) diesel version of Rio (Pride) sales volume Business Domain Global Network Sales & Services Production R&D Passenger Car Morning (Picanto), Ray, Venga, cee’d, Pride (Rio), Forte (Cerato), Forte Korea Sales 20 regional headquarters, 341 regional sales offices, 399 dealerships, Korea Sohari plant (350,000 units), Hwaseong plant (600,000 units), Gwangju plant Korea Namyang R&D Center, Mabuk Eco-Technology Research Institute, Central Koup (Cerato Koup), K5 (Optima), K7 (Cadenza), Opirus (Amanti) 9 shipping offices (460,000 units), Original equipment manufacturing (250,000 units) Advanced Research and Engineering Institute RV Soul, Carens (Rondo), Carnival R (Sedona), Sportage R (Sportage), Sorento R Services 20 regional service centers, 247 comprehensive service providers, 563 partial Overseas China plant