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Hyundai Mobis Sets New GHG Reduction Goals for 2030

In a significant step towards sustainability, Hyundai Mobis has officially set new greenhouse gas (GHG) reduction targets for 2030 and received approval from the Science Based Targets initiative (SBTi). The initiative, renowned for assessing corporate climate strategies against scientific benchmarks, has endorsed Hyundai Mobis’ ambitious commitment to reduce its emissions by 46% compared to 2019 levels. This milestone not only signifies the company's commitment to environmental responsibility but also promises to enhance its global order competitiveness.

Context of the Initiative

Hyundai Mobis' ambitious GHG reduction plan is part of a broader movement towards strengthened sustainability policies in Korea and internationally. With the approval of the SBTi, the automotive supplier is positioned to meet increasing global demands for sustainable practices, allowing it to remain competitive in the automotive sector. The SBTi is a collaboration involving global leaders such as the Carbon Disclosure Project (CDP) and the UN Global Compact, which meticulously evaluates and verifies corporate GHG targets based on the Paris Agreement.

The company's GHG reduction strategy extends beyond mere compliance, aiming for long-term sustainability and carbon neutrality by 2045. This commitment involves not only reducing emissions from its operations but also engaging its supply chain in significant ways to foster a holistic approach to emission reductions.

Specific Goals and Strategies

The newly set targets mandate Hyundai Mobis to reduce absolute Scope 1 and 2 GHG emissions from its operations by 46% by 2030. Additionally, the company has set a goal to achieve a 55% reduction in Scope 3 emissions per million KRW of value added within the same timeline. This multi-faceted approach highlights the comprehensive nature of Hyundai Mobis’ sustainability strategy.

One of the critical components of this strategy is the transition to renewable energy. Hyundai Mobis aims to increase the share of renewable energy used at its domestic and international facilities to 65% by 2030, with a long-term goal of achieving 100% renewable energy by 2040. To facilitate this transition, the company is advancing initiatives such as installing solar power generation facilities in key locations, including plants in Korea and abroad.

By rapidly installing solar panels at its major sites and partnering with its international facilities in India and beyond, Hyundai Mobis is making strides toward its renewable energy targets. Furthermore, the company is exploring options such as renewable energy purchase agreements to bolster this transition.

Supporting Partners in Emission Management

Recognizing the importance of collaboration, Hyundai Mobis is not only focusing on its sites but is also engaging its partners in the supply chain to enhance GHG management. Last year, the company expanded its verification of GHG emissions to include its overseas partners. This effort aims to generate a comprehensive understanding of emissions across its entire supply chain, thus facilitating tailored strategies to drive down emissions effectively.

By fostering a systematic approach towards GHG management among its partners and procuring low-carbon raw materials, Hyundai Mobis is setting an industry precedent for sustainable practices in the automotive sector.

Commitment to Transparency and Accountability

Hyundai Mobis is committed to transparency and regularly updates its Sustainability Management Committee on the progress of its renewable energy transition targets and overall GHG reduction performance. This accountability ensures that sustainability is integrated into the company’s core operations and decision-making processes.

The company's vision of 'Green Transformation to 2045 Net-Zero' underscores its commitment to implementing a comprehensive environmental management roadmap, reinforcing the broader push towards carbon neutrality within the automotive sector.

Conclusion

As Hyundai Mobis embarks on this formidable journey to achieve a 46% reduction in GHG emissions by 2030, it sets a significant benchmark for the automotive industry. By aligning with global sustainability initiatives and actively engaging in renewable energy practices, Hyundai Mobis not only enhances its competitive edge but also demonstrates a proactive approach to environmental stewardship in the automotive world. Through these efforts, it showcases that innovation in sustainability can pave the way for a greener, more responsible future in mobility.