Hyundai Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Fri, 14 Jul 2023 12:11:29 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.2 Case study: How Hyundai creates economic value for its stakeholders https://sustaincase.com/case-study-how-hyundai-creates-economic-value-for-its-stakeholders/ Fri, 14 Jul 2023 05:59:37 +0000 https://ccprowebs.com/new-sustaincase.com/?p=15226 Committed to innovation for people and the planet, Hyundai Motor Company has been providing its customers with the best products and services possible ever since its establishment in 1967. This case study is based on the 2022 Sustainability Report by Hyundai, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.  Hyundai is continuously making sincere efforts to […]

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]]> Committed to innovation for people and the planet, Hyundai Motor Company has been providing its customers with the best products and services possible ever since its establishment in 1967. Securing a competitive edge that creates sustainable economic value for all its stakeholders, is a top priority for Hyundai.  Tweet This!

This case study is based on the 2022 Sustainability Report by Hyundai, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing. 

Hyundai is continuously making sincere efforts to pursue the creation of economic value for its stakeholders by realising customer value through quality management, and creating social value through corporate citizenship. In order to create economic value for its stakeholders Hyundai took action to:

  • create economic value for employees
  • create economic value for shareholders and investors
  • create economic value for suppliers
  • create economic value for the government
  • create economic value for local communities

What are the material issues the company has identified?

In its 2022 Sustainability Report Hyundai identified a range of material issues, such as carbon neutrality & expansion of renewable energy, technological innovation, supply chain ESG risk management, strengthening product safety and quality management. Among these, creating economic value for its stakeholders stands out as a key material issue for Hyundai.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai engages with:

Stakeholder Group                Method of engagement
Customers and Dealers

 

 

 ·      Motor show and new car launching ceremony

·      Test driving

·      Before Service

·      Customer satisfaction survey

·      Car club

·      On-line (social media)

·      Website

·      Sports sponsorship

·      Dealer event
Employees

 

 

 ·      Labour-Management Council

·      Employee satisfaction surveys

·      Meetings and events

·      Grievance handling system

·      Occupational Safety and Health Committee

·      Work-related education and training
Suppliers

 

 ·      Win-win growth portal site

·      HMG Partner System

·      Transparent Purchase Practice Centre website

·      Global Win-Win Cooperation Centre (GPC Portal)

·      Seminars and training
Local Communities

 

 

 ·      Social contribution programmes

·      Communication with local communities nearby the company’s business sites

·      Recruitment

·      Family inviting events
Government

 

 ·      Public hearings

·      Policy-making discussions and briefings
Shareholders and Investors

 

 

 

 ·      Annual Shareholders Meeting

·      Company briefing

·      IR meetings

·      Sustainability Management Committee

·      Website

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Hyundai engaged with its stakeholders through a double-materiality-based stakeholder survey.

What actions were taken by Hyundai to create economic value for its stakeholders?

In its 2022 Sustainability Report Hyundai reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In 2021, Hyundai paid KRW 639.2 billion for employee salaries.
  • Creating economic value for shareholders and investors
  • In 2021, Hyundai paid KRW 130.1 billion in dividends and KRW 8.7 billion in interest expenses.
  • Creating economic value for suppliers
  • In 2021, Hyundai paid KRW 3,701.1 billion in raw material costs.
  • Creating economic value for the government
  • In 2021, Hyundai paid KRW 34.4 billion in income tax.
  • Creating economic value for local communities
  • In 2021, Hyundai spent KRW 3.8 billion in donations.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Hyundai, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.hyundai.com/content/hyundai/ww/data/csr/data/0000000050/attach/english/hmc-2022-sustainability-report-en.pdf

Note to Hyundai: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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]]> Case study: How Hyundai promotes labour-management relations https://sustaincase.com/case-study-how-hyundai-promotes-labour-management-relations/ Wed, 03 Jul 2019 09:11:29 +0000 https://ccprowebs.com/new-sustaincase.com/?p=9795 As a leading global automaker, Accordingly, Hyundai complies with international regulations on human rights protection and with all labour-related laws and regulations of the individual countries in which it operates. This case study is based on the 2017 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing. Abstract Hyundai seeks to enhance […]

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]]> As a leading global automaker, Hyundai respects the diversity of hundreds of thousands of employees around the globe, providing equal opportunities and fair compensation.  Tweet This! Accordingly, Hyundai complies with international regulations on human rights protection and with all labour-related laws and regulations of the individual countries in which it operates.

This case study is based on the 2017 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Hyundai seeks to enhance its corporate image by establishing a sound organisational culture and by actively responding to labour-related laws and policies, both in Korea and overseas. In order to promote labour-management relations Hyundai took action to:

  • promote labour-management communications
  • develop healthy overseas employee relations

What are the material issues the company has identified?

In its 2017 Sustainability Report Hyundai identified a range of material issues, such as product and service quality, improving financial stability, ethics/compliance management, developing eco-friendly products. Among these, promoting labour-management relations stands out as a key material issue for Hyundai.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai engages with:

To identify and prioritise material topics Hyundai engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Customers/Dealers

 

 ·      Motor show and new car launching ceremony

·      Test driving

·      Sports sponsorship

·      Customer service

·      Customer satisfaction survey

·      Car club

·      Before Service

·      Website

·      On-line communication

·      Dealer seminar/conventions/events

·      Agent conventions

·      My Car Story 2.0

·      Stakeholder interviews

·      Reports (financial reports, sustainability reports, etc.)
Employees

 

 

 ·      Labor-Management Council

·      Occupational Safety and Health Committee

·      Internal publications

·      Newsletters

·      Employee satisfaction surveys

·      WorkSMART assessments

·      Health & safety systems

·      Websites

·      Stakeholder interviews

·      Sustainability reports

·      Roundtable meetings

·      Management workshops

·      Lunch meetings

·      Grievance counseling

·      Suggestion Box

·      Home correspondence

·      Events with employee families

·      Sports events
Suppliers ·      Win-win growth and fair trade agreement

·      Foundation of Korea Automotive Parts Industry Promotion

·      Seminar and training for suppliers

·      Stakeholder interview

·      Energy-Saving Technology

·      Exchange Meeting

·      R&D Tech Day

·      R&D symposium

·      R&D Motor Show

·      Purchasing portal

·      Reports
Shareholders/Investors ·      Annual general meeting

·      Corporate Governance & Communication Committee

·      Company briefing

·      IR meetings

·      Website

·      Reports
Society ·      Communication with local communities near worksite

·      Youth support program

·      Website

·      Stakeholder interview

·      Reports
Government ·      Participation in policy-making public hearings

·      Participation in policy discussions and briefings

·      Website

·      Stakeholder interview

·      Reports

What actions were taken by Hyundai to promote labour-management relations?

In its 2017 Sustainability Report Hyundai reports that it took the following actions for promoting labour-management relations:

  • Promoting labour-management communications
  • Hyundai guarantees employee rights to organise labour union activities, to take collective actions and to exercise collective bargaining. In Korea, 48,150 employees or 72.0% of Hyundai’s total workforce are, since 2016, members of the ‘Hyundai Chapter of the Korean Metal Workers’ Union’. In 2016, the Labor Management Council developed measures to provide a better working environment for Hyundai’s employees, including improving the cafeterias and work uniforms. In addition, the collective negotiations in 2016 brought labour and management together to seek sustainable growth by signing agreements to support Hyundai’s response to the ever-changing landscape of the automobile industry, including the Labor-Management Future Development Strategy Committee and an agreement on eco-friendly vehicles. Additionally, Hyundai holds regular briefing sessions to build a consensus between labour and management.
  • Developing healthy overseas employee relations
  • Hyundai complies with all overseas labour-related laws and regulations, and guarantees and respects the legal right to take collective actions and exercise collective bargaining. BHMC (Beijing Hyundai Motor Company) and CHMC (China HyundaiMotor Corporation) in China have public assembly organisations, and HMI (Hyundai Motor India) in India and HMMC (Hyundai Motor Manufacturing Czech) in the Czech Republic each have their own labour unions, to represent the voices of employees. Workers at HMB (Hyundai Motor Brazil), Hyundai’s Brazilian subsidiary, joined the local labour union in the early stage of its existence, and the company maintains strong employee relations (ER). Although HMMA (Hyundai Motor Manufacturing Alabama) in the U.S., HMMR (Hyundai Motor Manufacturing Rus) in Russia and HAOS (Hyundai Assan Otomotiv Sanayi) in Turkey have no labour unions, they address staff requests through round-table meetings, employee committee activities and other regular activities. In 2016, Hyundai’s headquarters selected best practices in ER on a regular basis and rewarded them, to encourage overseas subsidiaries to better manage their ER.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions

2) Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Occupational health and safety

Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Freedom of association and collective bargaining

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Hyundai, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Hyundai: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Hyundai promotes labour-management relations appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Hyundai promotes effective environmental, health and safety management among its suppliers https://sustaincase.com/case-study-how-hyundai-promotes-effective-environmental-health-and-safety-management-among-its-suppliers/ Tue, 02 Oct 2018 07:07:05 +0000 https://ccprowebs.com/new-sustaincase.com/?p=8039 As a leading global automaker, pioneering the development of the automobile industry in Korea, , as it believes that their competitiveness provides the basis for Hyundai’s own competitiveness. Promoting the sustainability of its supply chain is, thus, a key priority. This case study is based on the 2017 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, […]

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]]>

As a leading global automaker, pioneering the development of the automobile industry in Korea, Hyundai seeks to achieve win-win growth with its suppliers  Tweet This!, as it believes that their competitiveness provides the basis for Hyundai’s own competitiveness. Promoting the sustainability of its supply chain is, thus, a key priority.

This case study is based on the 2017 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Layout 1

Abstract

In the automotive industry, suppliers provide an automaker with 95 per cent of parts used in building finished cars. Promoting social and environmental sustainability among its suppliers is, thus, highly important for Hyundai in achieving sustainable growth in partnership with its stakeholders. In order to promote effective environmental, health and safety management among its suppliers Hyundai took action to:

  • help suppliers achieve operational safety
  • provide support and training to suppliers on environmental, health and safety management
  • promote energy efficiency among suppliers

What are the material issues the company has identified?

In its 2017 Sustainability Report Hyundai identified a range of material issues, such as product and service quality, improving financial stability, labour-management relations, ethics/compliance management, developing eco-friendly products. Among these, promoting effective environmental, health and safety management among its suppliers stands out as a key material issue for Hyundai.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai engages with:

To identify and prioritise material topics Hyundai engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Customers/Dealers

 

 ·         Motor show and new car launching ceremony

·         Test driving

·         Sports sponsorship

·         Customer service

·         Customer satisfaction survey

·         Car club

·         Before Service

·         Website

·         On-line communication

·         Dealer seminar/conventions/events

·         Agent conventions

·         My Car Story 2.0

·         Stakeholder interviews

·         Reports (financial reports, sustainability reports, etc.)
Employees

 

 

 ·         Labor-Management Council

·         Occupational Safety and Health Committee

·         Internal publications

·         Newsletters

·         Employee satisfaction surveys

·         WorkSMART assessments

·         Health & safety systems

·         Websites

·         Stakeholder interviews

·         Sustainability reports

·         Roundtable meetings

·         Management workshops

·         Lunch meetings

·         Grievance counseling

·         Suggestion Box

·         Home correspondence

·         Events with employee families

·         Sports events
Suppliers ·         Win-win growth and fair trade agreement

·         Foundation of Korea Automotive Parts Industry Promotion

·         Seminar and training for suppliers

·         Stakeholder interview

·         Energy-Saving Technology

·         Exchange Meeting

·         R&D Tech Day

·         R&D symposium

·         R&D Motor Show

·         Purchasing portal

·         Reports
Shareholders/Investors ·         Annual general meeting

·         Corporate Governance & Communication Committee

·         Company briefing

·         IR meetings

·         Website

·         Reports
Society ·         Communication with local communities near worksite

·         Youth support program

·         Website

·         Stakeholder interview

·         Reports
Government ·         Participation in policy-making public hearings

·         Participation in policy discussions and briefings

·         Website

·         Stakeholder interview

·         Reports

What actions were taken by Hyundai to promote effective environmental, health and safety management among its suppliers?

In its 2017 Sustainability Report Hyundai reports that it took the following actions for promoting effective environmental, health and safety management among its suppliers:

  • Helping suppliers achieve operational safety
  • Hyundai recommends its suppliers to achieve the OHSAS (Occupational Health and Safety Management System) 18001 certification to prevent or manage risks related to production operations, and apply a voluntary safety and health management system. Additionally, Hyundai encourages suppliers to achieve ISO (International Organization for Standardization) 22301 certification, so as to respond to accidents and disasters in a systematic way, and, also, to nominate a disaster management officer.
  • Providing support and training to suppliers on environmental, health and safety management
  • Hyundai’s Ulsan Plant implements an education support program for tier 1 suppliers in the Youngnam region regarding the environment, safety and health. In 2016, 57 people from 47 companies voluntarily participated in the program. The program provided information on, among others, how to respond to safety accidents, on-site accident investigation techniques, and chemicals management at Hyundai. In addition, the Asan Plant offers its suppliers technical support in the environment, health and safety areas. In 2016, it also provided technical guidance to 20 external suppliers on regulatory issues, facility management, legal compliance and chemicals management.
  • Promoting energy efficiency among suppliers
  • Hyundai has been implementing, since 2012, the ‘Energy-Saving Technology Exchange Meeting’. This program helps suppliers better manage energy use, grow sustainably and become self-reliant. In 2016, 33 suppliers participated in the program. They shared their energy-saving success stories and related technological information.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

2) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

  • Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
  • Business theme: Workplace violence and harassment
  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Labor practices in the supply chain
  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Workplace violence and harassment

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified and ISEP approved Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI-Standards Certified and ISEP approved Course you will be taking the first step in gaining the many benefits of sustainability reporting.

 

References:

1) This case study is based on published information by Hyundai, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Hyundai: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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]]> Case study: How Hyundai is promoting product safety https://sustaincase.com/case-study-how-hyundai-is-ensuring-product-safety/ Tue, 28 Mar 2017 12:37:45 +0000 http://sustaincase.com/?p=1218 Automobile accidents may cause a tremendous number of injuries and deaths, as well as material losses. It is thus imperative to develop safety technologies that can help to prevent these accidents and crash avoidance technologies that can limit damage. This case study is based on the 2015 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate that CSR/ sustainability reporting done responsibly is achieved by identifying a company’s most important impacts on the environment and stakeholders and by measuring, managing and changing. As […]

The post Case study: How Hyundai is promoting product safety appeared first on SustainCase - Sustainability Magazine.

]]> Automobile accidents may cause a tremendous number of injuries and deaths, as well as material losses. It is thus imperative to develop safety technologies that can help to prevent these accidents and crash avoidance technologies that can limit damage.

This case study is based on the 2015 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate that CSR/ sustainability reporting done responsibly is achieved by identifying a company’s most important impacts on the environment and stakeholders and by measuring, managing and changing.

As one of the world’s leading global carmakers, Hyundai is focusing on the development of vehicle safety technology  Tweet This!, to prevent car accidents and minimize injuries in an inevitable collision. After measuring and setting targets, Hyundai took action to introduce accident prevention technologies – for example, the emergency driver assist system can analyze the location and speed of vehicles in the vicinity, detect the possibility of a collision, identify the safest route which will help to avoid a collision and prompt the driver to maneuver the vehicle out of danger –, implement technologies that reduce injuries in a collision – such as pedestrian protection technology – and, also, conduct vehicle safety tests for improved safety.

What are the material issues the company has identified?

In its 2015 Sustainability Report Hyundai identified a range of material issues, such as economic performance, labor-management relations, development of eco-friendly products, job creation and retention. Among these, promoting product safety stands out as a key material issue for Hyundai, as one of the world’s leading global carmakers with product responsibility as a top priority.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai engages with:

Stakeholder Group                Method of engagement
Customers

 

 ·         Motor show and new car launching ceremony

·         Test driving

·         Sports sponsorship

·         Customer service

·         Customer satisfaction survey

·         Car club

·         Website

·          Online communication

·         Reports (financial report, sustainability report, social contribution white paper)
Employees ·         Labor-management committee

·         Occupational safety committee

·         Internal publication

·         Newsletter

·         Grievance counseling center

·         Website

·         Reports
Suppliers/Dealers

 

 ·         Dealer seminar

·         Dealer conference

·         Dealer related events

·         Dealership conference, seminar and training

·         Supplier satisfaction survey

·         Web portal for purchase

·         Reports
Shareholders/Investors

 

 

 ·         Annual general meeting

·         Company briefing

·         Website
Society

 

 ·         Social contributions

·         Communication with local communities near worksite

·         Youth support program

·         Website

·         Report

How stakeholder engagement was made to identify material issues

Hyundai’s sustainability report focuses on high priority issues that have been identified, through rigorous analysis of internal and external issues, as being of highest interest to stakeholders and as having a major impact on business operations. In 2014, a survey was conducted among the staff responsible for key areas of sustainability management in order to identify high priority issues and to measure their materiality.

Important sustainability issues for Hyundai in 2014 were selected through the Materiality Analysis based on two main criteria – business impact and social interest. The top 30% of issues were classified as “Priority 1” and the next 30% were categorized as “Priority 2”. As a result of the analysis, Hyundai found that supplier management had become a new top priority, while the same issues that were analyzed as being material in the previous year were selected as priority issues once again.

What actions were taken by Hyundai to promote product safety?

In its 2015 Sustainability Report Hyundai set the following targets for promoting product safety, based on the company’s approach to materiality – on taking action on what matters, where it matters:

  • Introducing accident prevention technologies

Hyundai develops and provides tools that can facilitate safe driving on top of the basic driving and braking features.

Emergency driver assist system: The introduction of the electronic vehicle control system has led to improvements in sensor accuracy and overall vehicle performance. This has led in turn to the development of active safety technology that can detect dangerous situations and take preemptive safety measures. The emergency driver assist system can analyze the location and speed of vehicles in the vicinity, detect the possibility of a collision, identify the safest route which will help to avoid a collision and prompt the driver to maneuver the vehicle out of danger. The system also constantly analyzes information from the sensors mounted at the front and rear ends of the vehicle and analyzes the safest way to avoid any possible collision. The system can actively intervene with steering and braking inputs, adjusting them to maneuver the vehicle and driver out of emergency situations.

Autonomous emergency braking system: There is growing demand for active collision prevention systems. In Europe, a vehicle safety ratings institution has had a policy that would make it obligatory for vehicles to be equipped with autonomous emergency braking systems since 2014. Hyundai’s system detects a potential collision based on inputs from sensors installed in the vehicle and sends a warning alert. It applies brakes autonomously when necessary to protect drivers and the vehicle from a possible collision. The system can detect stationary or slow-moving vehicles and pedestrians, which helps prevent collisions at low speeds and reduces collision damage at higher speeds.

Rear-side alert system: Hyundai was the first Korean company to create an alert system that uses radar to detect vehicles approaching in blind spots on both rear sides when a driver changes lanes and applied it to the 2012 Equus. This system further improves the safety of drivers and passengers.

  • Implementing technologies that reduce injuries in a collision

To minimize collision injuries in case of an inevitable collision, Hyundai ensures maximum robustness of its vehicles and provides cutting-edge airbags and seatbelts. Vehicle front ends absorb crash energy for the safety of pedestrians and devices mounted at the front can automatically contact first responders when an accident occurs.

Pedestrian protection technology: Pedestrian protection technology minimizes the impact of a pedestrian-vehicle accident. Hyundai has developed an active hood system, one of best ways to reduce pedestrian impact during a collision. This technology has been applied to the Genesis, Aslan and the all new Tucson. In addition, energy-absorbing structures and materials on the bumpers and hoods of vehicles help to minimize injury in the event of a pedestrian collision.

Robust body structure: Hyundai’s mid-to long-term platform strategy has committed it to developing a robust yet lightweight vehicle frame optimized for each vehicle model. The vehicle frame is the main structure that affects driving performance, noise and vibration while also protecting passengers. Hyundai develops robust vehicle frames that are capable of handling collisions with the front, sides and rear as well as overturns. Hyundai uses very high tensile steel for more than 50% of the car body and also uses lightweight materials such as aluminum and carbon composites, to develop lightweight yet robust frame structures which can enhance fuel efficiency and improve collision safety.

Device to reduce personal injury: In the event of a collision, passengers risk severe injury due to their own kinetic energy, even if a robust vehicle frame minimizes deformation of the passenger cabin. Hyundai uses a technology that minimizes impact on passengers by forcibly tensioning the seat belt reel at the moment of impact to reduce injuries to the head, chest and abdomen. In addition, the six-airbag system, including front airbags for the driver and passenger, front side airbags, curtain airbags and rollover sensors, is simultaneously deployed to absorb the remaining kinetic energy of the passengers, to minimize severe injuries. Airbag pressure and deployment time automatically vary according to the nature of the collision, which helps with passenger safety. Hyundai also leads in protecting infant and child passengers by offering a child seat as a standard feature.

  • Conducting vehicle safety tests for improved safety

Hyundai models have earned exceptional safety ratings in tests in Korea and overseas. The new Genesis received a record-breaking score of 96.6 in the new vehicle safety test and was awarded “2014 Safe Car of the Year” by the Korean Ministry of Land Infrastructure and Transport. It also achieved the highest score ever in the Australasian New Car Assessment Program testing – 36.9 points out of a possible 37, and a maximum five-star safety rating. In the U.S., it was named a Top Safety Pick (TSP+), along with the new Sonata, by the Insurance Institute for Highway Safety (II HS) and became the world’s first sedan model to receive good ratings in every facet of the II HS crash test. These are the results of Hyundai’s efforts to manufacture vehicles with high safety ratings.

Which GRI indicators/Standards have been addressed?

The GRI indicator addressed in this case is: G4-PR1: Percentage of significant product and service categories for which health and safety impacts are assessed for improvement and the updated GRI Standard is: Disclosure 416-1 Assessment of the health and safety impacts of product and service categories

 

References:

1) This case study is based on published information by Hyundai, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

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