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HD Hyundai XiteSolution Issues Industry’s First TCFD Report

▶ Analysis on the company’s financial influence to climate change
▶ Includes strategy and roadmap for a sustainable future of HD Hyundai’s Construction Equipment business

HD Hyundai XiteSolution (CEO: Young-cheul Cho, Dong-wook Lee) announced on the 21st that they issued the industry’s first TCFD report that includes strategies for a sustainable future of HD Hyundai’s Construction Equipment business.

This is the company’s first step in showcasing efforts of HD Hyundai’s construction equipment business in responding to climate change since announcing its goal to reach carbon neutrality by 2050.

TCFD (Task Force on Climate-related Financial Disclosure) is a consultative body formed in 2015 based on the request of the Group of 20 (G20) and by the Bank of International Settlements (BIS) and the Financial Stability Board (FSB) to provide information on what companies are doing to mitigate risks of climate change.
TCFD’s 2017 recommendations include disclosure of financial information related to climate change including the company’s governance and strategy, risk management, management indicators and mitigation goals. HD Hyundai XiteSolution’s first TCFD report also faithfully includes all four items mentioned in this recommendation.

HD Hyundai XiteSolution analyzed different scenarios such as potential risks or opportunities that could affect the company’s financial affairs, and physical risks such as coastal flooding, extreme heat that could occur during its transformation to a low carbon economy. It also included carbon neutrality plans for its businesses home and abroad, GHG mitigation efforts, and valuation results on eco-friendly products such as hydrogen excavators, hydrogen forklifts, and hydrogen internal combustion engines. The total social value calculated by Ernst &Young, which adds up customer, human, social, financial value, reached approximately KRW 160 million (approx. $124,000) for one hydrogen forklift when operated for one decade. 

Indicators and goals on GHG emissions, total energy consumption, carbon emissions during product usage, have also been specified as part of its goal to reach carbon neutrality by 2050. GHG emissions of HD Hyundai’s construction equipment business was around 8% for business offices home and abroad, and 88% during equipment usage.

HD Hyundai XiteSolution also announced its roadmap through this report, stating that it will adjust its product portfolio to products that use eco-friendly technologies, reduce 25% emissions during the product usage stage on an annual basis, and reach carbon neutrality in its business sites by 2050.

The company plans to continue working on its strategy to reduce carbon emission during machine operation by applying a feature that calculates carbon emissions on the telematics system which is mandatory for mid-to-large sized equipment.

HD Hyundai XiteSolution’s TCFD report can be found on its official website.