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Recommendation

Group ESG Management

ESG Governance

HD HYUNDAI discuss key ESG issues and policies of the Group and support the ESG management
of the affiliates through the Group ESG Council consisting of Chief ESG Officers of each company.
In addition, our ESG Advisory Group consists of external experts from various fields
such as environment, co-prosperity, compliance, etc.

ESG Governance in each affiliate/ ESG Governance as a Group ESG Governance in each affiliate/ ESG Governance as a Group

Group ESG Issue Sharing & Decision-making System

Group ESG Issue Sharing & Decision-making System Group ESG Issue Sharing & Decision-making System
  1. Agenda Report : Report ESG agenda and key issues for the Group
  2. Deliberate : Deliberate on strategic directions, plans and implentations
  3. Advise : Take advise from outside expertise on ESG agenda and issues
  4. CEO Council : Discuss policy decisions and review implement plans for the affiliates
  5. Implementation : Implement and manage related tasks in each affiliate

ESG KPIs

HD HYUNDAI introduced ESG KPIs to facilitate the ESG implementation and systematically manage the related performances. We regularly monitor the trend of domestic and international disclosure standards and ESG rating agencies to select a pool of ESG KPIs and then finalize them in line with the company strategy, appraisal system, and performability. ESG KPIs are included in the annual performance appraisal of the executives and managerial positions who are in charge of key functions. HD HYUNDAI checks the KPI performance with a strict evaluation process, which is eventually reflected the company’s performance appraisal and compensation of the executives and employees.

Steps to
develop ESG
KPI

  • ESG Trend Analysis ESG Trend Analysis
    01ESG Trend Analysis
    • Check the trends of ESG evaluation and disclosure requirements
    • Global trends
    • Domestic trends
    • Sustainable management and legal or regulatory issues
    • Major reports in the industry
  • Industry and Company Analysis Industry and Company Analysis
    02Industry and Company Analysis
    • Strategic Relevancy : Analyze the relevance to ESG strategy tasks in each affiliate
    • Appraisal Relevancy : Analyze the relevance to appraisal system in each affiliate
    • Performability Analysis : Priority, practicability, etc., Stakeholder demands and expectations, Related legal and regulatory issues
  • ESG KPIs Selection ESG KPIs Selection
    03ESG KPIs Selection
    • Common KPIs : Major indices that require the group-level management
    • Industrial KPIs : Specific indices required to respective industries / Shipbuilding & Offshore Engineering, Oil & Petro chemistry, Construction Equipment, Electric Equipment, Robotics, Solar Power
    • Respective KPIs : Specific indices for each affiliate
  • Performance Appraisal and Compensation Performance Appraisal and Compensation
    04Performance Appraisal and Compensation
    • Evaluate target achievement
    • Include in the management performance appraisal of each affiliate
    • Share the best practices among the Group
OUTPUT
  • Link to executive
    and employee compensation
  • Enhance ESG standards
    of the Group