Road to Sustainability: Can Hyundai Reach Net Zero by 2045?

Hyundai Motor Company’s 2025 Sustainability Report, titled Road to Sustainability, outlines the company’s evolving approach to embedding ESG principles into every aspect of its global operations. 

With a long-term commitment to carbon neutrality by 2045, Hyundai is reshaping its business through electrification, supply chain transparency and stakeholder-driven governance. 

Despite economic volatility and tightening global regulations, the company has delivered record performance and reinforced its leadership in sustainable mobility.

Environmental sustainability

Hyundai’s environmental performance centres on its ambition to reach net zero emissions by 2045. 

In 2024, the company recorded total Scope 1 and 2 GHG emissions of more than 2.1 million tCO₂e and continues to address upstream Scope 3 emissions through supply chain reform. 

Hyundai signed major renewable power agreements in Korea, India and the United States to accelerate its transition to RE100, with a target of 100% renewable electricity across all sites by 2045. 

Its water stewardship strategy includes zero liquid discharge systems and rainwater harvesting, particularly in high-risk regions such as India – helping avoid production disruption while reducing reliance on external water sources.

Electrification and clean mobility

Electrification is at the heart of Hyundai’s transition strategy. 

In 2024, the company sold 218,504 EVs and plans to deliver two million annually by 2030, supported by a rollout of 21 EV models and expanded production in North America, Europe and Asia. 

Alongside battery innovation and modular design, Hyundai is scaling up fuel cell and extended-range electric vehicle (EREV) platforms to ensure flexibility amid shifting regulatory landscapes. 

Its Singapore and Georgia plants showcase smart manufacturing powered by renewables and digital systems, supporting global capacity growth and carbon savings.

Green manufacturing and efficiency

Energy efficiency measures include the introduction of low-temperature paint curing technology that reduces energy consumption by up to 40%. 

At its Asan plant, Hyundai saved US$1.06bn annually and cut carbon emissions by more than 2,450 tonnes through this innovation. 

The company’s use of AI-based systems, digital twin technology and predictive energy management reflects its move toward intelligent, low-carbon manufacturing ecosystems.

“At the heart of Hyundai’s vision is our commitment to sustainability,” says José Muñoz, President and CEO of Hyundai Motor Company.

“Our Sustainability Report provides a snapshot of our performance in categories critical to our governance and to future generations. 

“We’re working diligently to reduce the environmental impact of our vehicles and manufacturing processes throughout their lifecycle. 

“Our commitment to achieving 100% renewable energy (RE100) across our businesses is taking shape through large-scale renewable energy purchase agreements in Korea, the US and India. 

“We’re also maximising water recycling and working toward our ultimate goal of carbon neutrality by 2045.”

Social sustainability

Social sustainability is embedded in Hyundai’s HR, health and supply chain practices. 

Globally, the company aims to reach 27% representation of women in management outside Korea by 2030, while in Korea it is targeting 15%. 

Hyundai has also committed to hiring more than 450 individuals with disabilities by 2027 and expanding diversity training across all sites to promote equity and inclusion.

Human rights

Hyundai conducted ESG risk assessments on 1,120 overseas suppliers, introduced forced labour risk screening and updated procurement codes to align with international laws, including the US Uyghur Forced Labour Prevention Act and the EU Forced Labour Regulation. 

Human rights training and audit programmes were expanded across 74 global sites, supported by grievance mechanisms, site-specific risk mapping and regular follow-up on corrective actions.

Health and safety

Health and safety are actively governed at board level, with key metrics integrated into site-specific KPIs. 

In 2024, Hyundai delivered more than 106,000 hours of environmental and safety training to more than 67,000 employees. 

Risk monitoring systems, including digital dashboards and safety sensors, are being deployed to detect incidents early and reinforce site preparedness.

Governance and ethics

In governance, Hyundai strengthened its board structure by introducing a lead independent director and increasing female representation to 33%. 

ESG performance is now embedded into executive KPIs, and all sustainability policies are overseen by the board-level Sustainability Management Committee. 

Independent committees for ethics, audits and remuneration provide further checks and accountability.

A newly established Business Risk Management Group reports directly to the CEO, tracking threats across supply chains, geopolitics and climate regulation. 

Hyundai’s governance framework ensures real-time monitoring and integrates ESG risks into long-term planning, especially as global expectations around transparency, due diligence and emissions disclosures continue to rise.

Stakeholder engagement

Communication and collaboration

Hyundai continues to engage with a wide range of stakeholders through structured channels for employees, dealers, suppliers, investors, governments and communities. 

Communication platforms such as the Win-Win Growth Portal and HMG Partner System foster transparency and mutual development.

Investors are especially concerned with Hyundai’s net-zero roadmap, progress on RE100, and ability to mitigate risks linked to EV production and supply chain ethics.

The company has also recently delivered electric buses to Tanegashima Yakushima Kotsu, a regional transportation and tourism service provider operated by the Iwasaki Group in Kagoshima Prefecture, Japan. 

The initiative marks a significant step in transitioning to zero-emission public transport on Yakushima Island, a UNESCO World Heritage Site.

"I am delighted to see Hyundai's ELEC City electric buses running here on Yakushima, contributing towards a cleaner island environment," says Jaehoon Chang,  Hyundai Motor Group Vice Chair.

"Being part of Yakushima's zero-emission island initiative is a significant step towards achieving carbon neutrality on the island by 2050."

ESG in Korea

The company hosts dedicated ESG briefings, including Korea’s first ESG-focused non-deal roadshow. 

Hyundai’s performance on climate and social targets is now directly linked to its creditworthiness, with third-party ratings influencing borrowing costs and access to capital.

Its ESG metrics are publicly available and aligned with global frameworks including GRI, SASB and the UN Sustainable Development Goals.

Performance overview 

Hyundai generated US$128bn in revenue with an 8.1% operating margin. 

Net profit reached US$9.6bn, reflecting robust demand and operational resilience. Eco-friendly vehicle sales rose to 757,195 units, a 9% increase from the previous year, while EVs alone contributed to an estimated 1.97 million tonnes of avoided CO₂-equivalent emissions. 

These avoided emissions represent a social cost value of more than KRW 226 billion. 

Water recycling efforts saved 2.9 million tonnes and US$1.6bn in cost, while energy and carbon-saving measures at plants delivered measurable environmental returns. 

Key facilities such as the Hyundai Motor Group Metaplant America (HMGMA) are now central to the company’s strategy for localised EV production and compliance with market-specific sustainability regulations.