Road to Sustainability 2020 Sustainability Report This report has been published as an interactive PDF, allowing readers Contents Reference Page Video Clip Related Link Homepage Facebook YouTube to move quickly and easily to pages in the report, and including shortcuts to the related web pages. Instagram Twitter 1 2 3 Introduction Sustainable Performance Sustainability Factbook Sustainability Magazine CEO Message Sustainability Management Materiality Analysis Global Network 003 015 078 Sustainability C.A.S.E Brand Vision Mid- to Long-term Goals Business Performance 1 . Clean mobility 004 017 079 2. Advanced technology Future Mobility Vision Facts & Figures 3 . Social values 005 Our Commitment Our System 081 Strategic Direction Smart Mobility-based Corporate Stakeholder Engagement 4. Empowered employees 006 Customer Experience Innovation Governance 092 Company Overview 018 072 GRI Index 007 Pursuing Eco-friendly Value Ethical and Compliance 093 throughout the Entire Value Chain Management Independent Assurance Statement 031 075 098 Special Feature Creating a Sustainable Risk Management COVID-19 Solidarity and Support About This Report Supply Chain 076 008 104 039 Building a Healthy Corporate Culture 047 Contributing to the Development of Local Communities 057 1 Introduction 2 Sustainable Performance 3 Sustainability Factbook Sustainability Magazine 003 CEO Message At the center of Hyundai Motor Company’s management philosophy is “humanity”. The same principle applies to “Progress for Humanity”, the brand We will overcome the crisis together. To secure a leadership position in the global vehicle electrification vision we adopted anew in 2019. We have also established “Strategy Hyundai will proactively respond to change by reprioritizing crisis market, we will develop electric vehicle-only platforms and 2025”, an action plan for achieving our vision of the future mobility management with liquidity at the front and minimize losses by further sharpen the competitive edge of our key drivetrain parts. as a “Smart Mobility Solution Provider”. calibrating production and sales to market situations. Furthermore, In particular, in the business of FCEVs, where we lead the world, we will remain close to our stakeholders who are experiencing this we will expand the business to fuel cell systems and the relevant In 2019, upholding our unwavering commitment, disciplined growth difficult time. We will further strengthen the relationship of trust infrastructure, and play a pivotal role in the global transition into a strategy, and technological prowess, we continued to grow in the with our customers by offering distinctive financing programs hydrogen society. In the mobility service area, we will fully launch face of challenging market conditions. In particular, we earned and maintaining glitch-free services, and we will bolster ties with the business by region, including Korea, India, and Europe, thus recognition as the most competitive company in the eco-friendly suppliers and dealers with increased support for supplier liquidity laying the foundation for generating quantifiable outcomes. Taking a and premium vehicle sectors, to which we have been directing our and dealer sales. In addition, we will support policy measures that step further, Hyundai will evolve into a company that offers mobility commitment to excellence. We demonstrated this by recording are implemented to fight the COVID-19 pandemic throughout the solutions in a wide range of areas, such as Urban Air Mobility (UAM), our No. 1 position in global FCEV sales and maintaining the leading world, and conduct CSV activities addressing the needs of local robots, and smart cities – all soon to become a reality. position of the Genesis that was named as the top premium brand communities that are doing their best to overcome the crisis. in the US Initial Quality Study (IQS) for three years in a row. No one can predict what the post-COVID-19 era will be like. Even We will become stronger. the amidst of an unprecedented pandemic, Hyundai’s goals remain In addition to economic value creation, one of our fundamental Hyundai will implement bold and innovative measures that will clear. As the corporate environment becomes increasingly complex, roles as a company, Hyundai focused our capabilities and passions change the fundamentals of our cost structure in order to be strong Hyundai’s innovation points to one direction. We will continue our on generating social values crucial to the betterment of society. We enough to withstand a crisis of any magnitude. We will rationalize “Progress for Humanity” with the goal of providing freedom of widened the scope of our CSV activities so that our stakeholders can the inefficient powertrain and other low-performing lines, reduce movement to everyone, connecting people with quality time, and spend quality time with Hyundai and expedited the development of production costs through design innovation and manufacturing improving the daily lives of all humanity. We will take untrodden eco-friendly technology so that we can usher in a hydrogen society standardization, and facilitate profit-centric decision-making by paths that are far from easy but worth the effort, and strike out powered by unlimited clean energy. As a result of these efforts to improving the flexibility of global production systems. We will also in new directions. I look forward to your continued interest and run our business in an economically, socially, and environmentally increase our operational efficiency and execution abilities through support as we journey towards a sustainable future. responsible way, Hyundai made the coveted Dow Jones Sustainability process innovation. Customers are the driving force as well as Index (DJSI) Korea list in 2019. the goal of our innovation. Once the crisis is overcome, we will be Thank you. transformed into a thoroughly customer-centric institution, and by In 2020, we are facing unprecedented crisis and challenges. The turning this obstacle into opportunity, we will discover a path to new global spread of the COVID-19 pandemic is threatening the stability growth. of the world economy and the cohesion of the global community. Responding to the threat as a mature global player, Hyundai will We will prepare for a new future. President & CEO, Hyundai Motor Company lead global efforts of progress towards a better future by faithfully Hyundai will develop new growth in the future mobility market Won Hee Lee executing the following tasks. based on our mid- to long-term innovation plan, Strategy 2025. 1 Introduction 2 Sustainable Performance 3 Sustainability Factbook Sustainability Magazine 004 Brand Vision Progress for Humanity In the Fourth Industrial Revolution era, industry boundaries are disintegrating amid a rise of convergence and change. Mindful of such global megatrends, Hyundai is accelerating its innovation drive powered by an advanced technical prowess. Ever present in Hyundai’s 50-year journey has been the notion of the human race. Without aspirations for humankind, our technological innovations would have been impossible. As an extension of our ever-hopeful journey, in 2019 we adopted a new brand vision “Progress for Humanity” as a way to confirm our determination to create more valuable time for all humanity. Hyundai is now going beyond being an automobile manufacturer to become a mobility solution provider that allows people to easily move and connect with one another, spaces and places, and thus enabling them to make their time more valuable. We will provide mobility services that make every moment of life more valuable than before by more thoroughly understanding people’s daily lives, in our journey toward progress for humanity. Hyundai’s Brand Vision 1 Introduction 2 Sustainable Performance 3 Sustainability Factbook Sustainability Magazine 005 Future Mobility Vision Smart Mobility 1 Solution Provider The essence of future mobility lies in the ability to connect people safely and quickly. In particular, mobility freedom is a crucial issue for future cities, as their population will soon make up for more than half the world population. We believe that this is because the easier people make use of their time and space the more meaningful tasks they can challenge themselves to. At the Consumer Electronics Show (CES) 2020, Hyundai unveiled its future mobility vision, presenting a blueprint for the vision of helping vitalize human-centered future cities. The smart mobility solutions we envision break down urban boundaries 2 and create new communities by radically reducing travel time. We will provide seamless mobility solutions comprising Urban Air Mobility (UAM), Purpose Built 3 Vehicle (PBV), and Hub – a place for mobility transfer and community activities – all in a bid to contribute to the vitality of dynamic human-centered future cities and as part of our pursuit of “progress for humanity”. 1 2 3 Urban Air Mobility (UAM) Purpose Built Vehicle (PBV) Hub • A mobility solution that combines Personal Air Vehicles (PAV) and • An eco-friendly urban vehicle that offers customized • A new mobility space connecting an air-based UAM services to make airspace available for urban transportation services in transit, such as a coffee shop and medical clinic UAM and ground-based PBV • The use of electric vertical takeoff and landing (VTOL) vehicles allows • Connects to the Hub via docking station, located on • Creates new communities by combining runway-free urban air travel the ground floor of the Hub multiple PBVs • Connects to the Hub via skyport,