Hyundai Rotem said Thursday it received an A+ rating in the Korea Institute of Corporate Governance and Sustainability's (KCGS) 2026 ESG (environmental, social and governance) assessment of listed companies.
The company has maintained the top overall rating for three consecutive years since first earning an A+ in 2024.
In the environmental category, key achievements included generating renewable energy in-house, introducing an internal carbon pricing system and reducing water pollutants.
Hyundai Rotem completed the installation of solar power facilities with a combined capacity of 640 kilowatts at its Changwon plant, a key production base, in December last year. The company is now stepping up efforts to expand its use of renewable energy.
The internal carbon pricing system, introduced around the same time, requires carbon costs to be factored into reviews of new investments worth 500 million won or more. Under the system, potential carbon emissions generated by an investment are assigned a monetary value and incorporated into decision-making.
At the Changwon plant, three indicators of water pollution — biochemical oxygen demand (BOD), total organic carbon (TOC) and suspended solids (SS) — fell 11 percent, 14 percent and 39 percent, respectively, last year from a year earlier, continuing a steady improvement.
Hyundai Rotem is also strengthening supply chain management to build a sustainable business ecosystem. Since last year, it has operated a supply chain sustainability management policy to address ESG risks across its entire supply chain, including partner companies. The policy covers risk prevention and monitoring, as well as ESG training for suppliers.
Based on the policy, Hyundai Rotem conducted ESG assessments of 150 major suppliers last year. It also carried out on-site inspections of 56 companies requiring improvement, obtained corrective action plans and is monitoring their implementation.
The company has also strengthened ESG compliance requirements for overseas suppliers by revising its standard international goods purchase contracts. The revised contracts include provisions requiring compliance with human rights, labor, environmental and ethical standards, going beyond traditional requirements related to price, delivery schedules and quality.
In the governance category, key achievements included establishing an independent board and introducing sustainability disclosure regulations.
Hyundai Rotem established an independent board through a board resolution in November last year, seeking to protect shareholder interests and improve governance transparency by strengthening the board's independence.
The sustainability disclosure regulations, introduced in December last year, are designed to manage the company's ESG-related business strategies, targets and performance.
A Hyundai Rotem official said, "We will continue to fulfill our responsibilities to build a sustainable industrial ecosystem together with our suppliers and all other stakeholders."
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