Sustainability

Increasing the sales of eco-friendly vehicles

• In 2024, we achieved annual sales of 757,195 eco-friendly vehicles (EV, HEV, PHEV, FCEV), marking a 9% increase compared to the previous year.

Increasing the use of renewable energy

• Last year, in Korea, we signed the country’s largest-ever Power Purchase Agreement (444 MW) to supply electricity for our domestic operations, including the Ulsan Plant, Asan Plant, Jeonju Plant, and Namyang R&D Center, and others. In 2024, we signed large-scale Power Purchase Agreements of 147 MW in the United States and 118 MW in India, leading to a 30% increase in global renewable energy consumption compared to 2023.

Increasing the number of models subject to LCA

• Completed LCAs for a cumulative total of 36 models*, including 15 new models, in 2024 to achieve an LCA coverage rate of 62.2% against total vehicle sales* Excluding models whose sales discontinued as of 2024.

Enhancing water recycling performance

• Achieved a 11.3% year-on-year increase in water recycling in 2024. Increased the recycling rate to 28.7% in 2024, 5% rise from 2023.

Reinforcing sustainability management along the supply chain

• We participate in global sustainable supply chain initiatives (Responsible Business Alliance, Drive Sustainability) and work to implement supply chain mapping and risk screening programs.

Setting goals for employee diversity

• We aim to increase the ratio of women in management positions to 15% in Korea by 2030 and to 27% across overseas operations. Our goal is to reach a 50% completion rate for diversity awareness training across global sites by 2025. In Korea, our targets for the number of employees with disabilities are 100 by 2025, 150 by 2026, and 200 by 2027.

Conducting global human rights management education

• We prioritize Diversity & Inclusion (D&I) training for all employees to strengthen awareness and practices across the organization.

Conducting human rights/ethics due diligence on business sites

• We establish indicators to assess the current state of human rights and ethics, helping us set higher standards. Through on-site audits conducted at 74 business sites — including 33 in Korea, we identify areas in need of improvement.

Appointing a lead independent director and establishing the Independent Director Meeting

• We ensure that a lead independent director convenes and chairs the Independent Director Meeting — attended exclusively by independent directors — to gather feedback through discussion and present it to the Board of Directors, thereby supporting free-flowing communication among shareholders, the Board of Directors, and management.

Enhancing the Independence of Committees under the Board of Directors

• With recent changes, the Compensation Committee has been established as a fully independent body, strengthening our commitment to transparency and impartiality in governance. To further this goal, we also increased the number of independent members in the Recommendation Committee on Candidates for Independent Directors while reducing the number of internal executives.

Improving the Diversity of the Board of Directors

• We increased the proportion of women on our Board from 17% to 33%, and raised the share of foreign members from 17% to 25%.

Embedding ESG into the investment process

• We incorporated an ESG risk assessment stage into our investment review process, ensuring that environmental and social impacts are considered in every decision.