Ranking
10 of 18
Comparison
(11) in 2023
% EV Sales
8%**
Total Score
Total Score
Fossil Free & Environment
Human Rights
* EV-Volumes OEM Share tracker. All figures are cumulative annual values for the year 2023. The data covers passenger vehicles only and includes Europe, China, Korea, Japan, the United States and Canada.
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Summary
Hyundai has grown its EV production this year (although EVs still only account for a trivial portion of its overall vehicle sales) and has also made modest improvements on its supply chain, causing the automaker to increase its Leaderboard ranking by one place and become the highest-scoring East Asian automaker overall.
Nonetheless, Hyundai trails many of its industry peers when it comes to clean and equitable supply chains. In particular, it has made almost no progress on reducing the emissions and other environmental impacts from its steel, aluminum, and battery supply chains, and has also failed to improve its performance on the responsible sourcing of transition minerals and Indigenous rights.
Key Findings
- Discloses its scope 3 supply chain emissions and has set a target to achieve carbon neutrality across its entire value chain by 2045, but no longer discloses clear interim targets for its supply chain.
- Discloses no action to decarbonize the primary steel and aluminum used in its vehicles, although it has taken some initial steps on secondary steel and aluminum.
- Continues to be one of the worst scorers on auto industry climate lobbying from InfluenceMap; only Toyota scores lower.
- Has made some concrete human rights commitments and now discloses its human rights risk by region, including some workers’ rights risks.
- Worryingly, Hyundai does not provide any evidence that it has meaningfully strengthened the human rights due diligence processes for its supply chain, despite investigations published last year that found widespread use of child labour by its suppliers in Alabama.
Score Breakdown
Fossil-Free & Environmentally Sustainable Supply Chains
* InfluenceMap scores were applied as a multiplier to the total Fossil-free & Environmentally Sustainable Supply Chains score. See methodology for further details.
Human Rights & Responsible Resourcing
Supply Chain News & Progress
Latest on Hyundai
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
Illegal rare earth mining in Myanmar linked to supply chain of major automakers
A new report by Global Witness has documented the harmful impacts of illegal rare earth mining in Myanmar, linked to the supply chains of major automakers – including Volkswagen, Toyota, Tesla, Nissan, Ford and Hyundai.
Hyundai sued by Department of Labor over use of child labor and faces new prison labor allegations
Hyundai Motor Company, together with an auto parts plant and a labor recruiter, have been sued by the U.S. Department of Labor over the illegal use of child labor in Alabama. Reuters reported in 2022 that children, some as young as 12, worked for a Hyundai subsidiary and in other parts suppliers for the company in the Southern state.
A report by Bloomberg published the same month also names a supplier of Hyundai Motor Company as profiting from the forced labor of incarcerated workers in the U.S.
Hyundai Steel produces low-carbon, high-strength steel plates
Hyundai Steel says it has become the first steelmaker globally to produce high-strength steel plates by using an electric arc furnace, which helps reduce carbon emissions drastically during the whole process… part of the company’s carbon neutrality initiative, dubbed “Hy-Cube,” with a goal of switching completely to hydrogen-based steel production by 2030.
Pollution, child labour, workers’ rights violations and new coal-fired power plants in Hyundai-Kia’s supply chains
According to the Business and Human Rights Resource Centre, Hyundai-Kia’s supply chains have been linked to child labour and workers’ rights violations. Reports also implicate Hyundai-Kia’s supply chains with air pollution and premature deaths in South Korea and environmental contamination in Indonesia.
Hyundai Motor Company also signed an MoU to purchase aluminium from Adaro in Indonesia, which would be powered by new coal-fired power plants.
Our Vision
The future is an automotive industry where all vehicles are made:
01 — Equitably
Respecting and advancing the rights of Indigenous Peoples, workers, and local communities throughout the supply chain.
02 — Sustainably
Preserving and restoring environmental health and biodiversity across supply chains, while reducing primary resource demand through efficient resource use and increased recycled content.
03 — Fossil-free
100% electric and made with a fossil fuel-free supply chain.