the road to sustainability
TRANSCRIPT
THE ROAD TO SUSTAINABILITYHYUNDAI MOTOR COMPANY2002/2003 Sustainability Report
PurposeThis report focuses on corporate social responsibility and corporate citizenship as a
step toward sustainability on a global scale. This report sheds light on some of our
activities in these areas and welcomes feedback from readers and other stakeholders
alike.
ContentThis is our first sustainability report, which expands on last year’s environmental
report, adding social and economic aspects. This report was prepared under the envi-
ronmental reporting guideline 2003 of the Ministry of Environment, Republic of
Korea, Global Reporting Initiative (GRI) sustainability reporting guidelines 2002 and
UNEP Mobility Forum guideline for sustainability reports.
ReaderThis report is intended for a wide readership – customers, employees, analysts, com-
munities, advocacy groups, shareholders and other stakeholders who work with or
are impacted by Hyundai Motor.
ScopeThis report shows sustainability activities in these key areas of business, including
human resources, R&D, purchasing, production, marketing and sales, and aftermarket.
This report primarily covers the activities of domestic Hyundai Motor operations
unless otherwise indicated in the text. Hyundai Motor subsidiaries and affiliated com-
panies are not mentioned. Major figures of environmental aspects are from the whole
period of the 2002 calendar year and information of social and economic activities are
from January 2002 ~ August 2003.
Hyundai Motor Company
2002/2003 Sustainability Report
Table of Contents
04 Chairman’s Message06 Company Profile08 Vision on Sustainability
Sustainability
16 Environmental Value22 Social Value32 Economic Value
Sustainability Activities by Department
36 R&D47 Purchasing50 Production58 Marketing & Sales61 Aftermarket
Appendix
66 Environmental Data70 KPMG Global Sustainability Services™
Recommendation71 Contacts
The Challenge for Sustainable Development
Hyundai Motor has concentrated its efforts on respecting human value and contributing to
society through the preservation of the environment, based on corporate citizenship.
Those efforts were made substantial through the announcement of the global environmental
policy and followed by other activities we’ve achieved. Hyundai Motor recognizes the
environment as a core corporate value to become a global top 5 automaker in overall
competitiveness.
To put our values and policies into action, we launched a corporate-level environment orga-
nization and established a company-wide environment management strategy, created
through analyzing the entire corporate value chain. In addition, we broke ground on the
Hyundai Eco-technology Research Institute that will lead the way in, among other innovations,
the future development of environmentally-friendly vehicles.
We are aligning our existing policies and systems with this environment management
strategy as well as ethics management to improve our corporate value and our sustainable
future. In step with these changes, we are improving other management systems, to balance
profit and development, short-and long-term goals, and the triple-bottom line: economy,
the environment and society. This report is an important step for us in this process. Through
steps like this, we will respond to various social requirements and continue to improve our
competitiveness as a company with global presence and to meet stakeholder expectations.
As we look toward to the future, we will do our best to enhance quality of life through
supplying safer, environmentally-friendlier vehicles and increase the number of channels
for proactive communications with stakeholders such as customers, investors, employees,
suppliers and NGOs, without compromising the rights of the next generation. All these will
lead to mutual respect and cooperative relationships, which are necessary for harmonized
society. Meeting these objectives is a responsibility that we share with all of industry, as we
move collectively toward a more sustainable and a more productive future. We look forward
to your interest and encouragement. We invite you to be with us as we challenge for the
future, the environment and humankind.
Chairman & CEO, Hyundai Motor Company
Mong-Koo Chung
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Chairman’s Message
Company Profile (as of Dec. 31, 2002)
Headquarter: Seoul, Republic of Korea (231, Yangjae-dong, Seocho-Gu)
Industry sector: Manufacturing
Major product: Automobiles
Production capacity: 1.7 million units per year
Total assets: 20, 867 billion Korean won
Amount of capital: 1,476 billion Korean won
Sales: 26,337 billion Korean won
Net income: 1,434 billion Korean won
R&D expenses: 914 billion Korean won
Number of employees: 49,993
Chairman and CEO: Mong-Koo Chung
Date of establishment: Dec. 29, 1967
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Hyundai Motor’s Environmental History
I. Early Stage1967 Establishment of HMC1975 Ulsan Plant completed
II. HMC s Indigenous Model Development Stage1976 Pony launched1984 Ulsan Testing Ground completed
(First Korean comprehensive road test facility)
III. Self-supporting Framework Establishment Stage1985 Pony Excel production facility completed
(300,000 units/year capacity)Establishment of Hyundai Motor America (HMA)
1989 Excel, the third generation passenger vehicle, launched
IV. Expansion Stage1991 Development of first Korean engine and transmission
Development of electric vehicle #1, the pioneer modelDevelopment of the lean burn engine (the first high efficiency Korean engine)
1992 Development of the alcohol fuel cell vehicleDevelopment of the electric vehicle #2
1993 Development of the electric vehicle #3 ~ #61994 Development of nickel-metal hydrogen fuel cell electric vehicle
Development of environmentally-friendly hydrogen-fuel vehicleDevelopment of solar energy vehicle
1995 Development of hybrid electric vehicle (FGV-1)Development of natural gas vehicle (NGV)Simultaneous certification by ISO/DIS 14001/BS7750 (Head Office, Ulsan Plant, Namyang R&D Center, Mabuk R&D Center) for the first time by a Korean
automaker1996 Development of electric vehicle Accent1997 Clean Vehicle Certification from California Air Resources Board
(First Korean electric vehicle to receive certification)1998 ISO 14001 certification (Asan Plant)1999 ISO 14001 certification (Jeonju Plant)
Development of fuel cell for automobile (First in Korea)Use of lead-free paint
2000 Diesel engine application for passenger vehicle (First in Korea)Development of compressed natural gas (CNG) busDevelopment of methanol fuel cell electric vehicle (First in Korea)Development of hydrogen fuel cell electric vehicle (First in Korea)
2001 Passenger vehicle Common Rail Direct Injection (CRDi) diesel engine recognized as one of Korea Top 10 New Technologies of 2000Introduction of fuel cell electric vehicle Santa Fe (First in Korea)
2002 PBEC Environmental Award (Golden Winner)Hydrogen fuel cell electric vehicle stayed the course in 2002 California Fuel Cell Road Rally
Hyundai Motor Company Head OfficeU.S.A.HMA / HMFC / HMMA / WMGHATCI / Latin American & Caribbean HQHYMEX CANADA / HACJAPAN / HMJ Hyundai Motor Japan R&D Center
CHINABeijing Jingxian Motor Safeguard ServiceBeijing Hyundai Motor Co.HMC Beijing OfficeHMC Shanghai Office GERMANY / HME / HYME Hyundai Kia Motor Europe Engineering CenterRUSSIA / Moscow Office
India / HMI
AUSTRALIA / HMCA / Sydney Office
TURKEY / HAOS
POLAND / HMP
HMC Representative office in Poland
U.A.E / Africa & Middle East HQ
MALAYSIA / Asia & Pacific HQ
Hyundai Motor Company Worldwide
Vision on SustainabilityAutomobile is no longer a means of simple transportation. It is now a space forreflection, room for friend and family, and even a workspace outside your office.Automobile has become the commodity of necessity: it is indispensable for our lives.What will automobiles mean for us in the future? What will it mean for theenvironment and society? As a responsible corporate citizen, we commit tocontribute to harmonious prosperity of human and the global environs. Hyundai Motor invites the world to join us in our effort toward Sustainability.
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Management PolicyIn 2000, Hyundai Motor and Kia Motors merged to form the Hyundai Automotive Group and imple-
mented a “horizontal management system” in September 25 of that year. The horizontal management
system gives departmental teams extensive power to carry out corporate policies and implement
their own action plans based on those policies. The horizontal management system is guided by three
principles: 1) Trust-Based Management 2) Site-Intensive Management 3) Transparent Management.
These principles, together with the environmental policy mentioned later in this report, give direction
to the management strategies that drive our business. In 2003, we established four objectives to be
met in the mid- to long-term strategies: 1) enhance product value, 2) establish a global production
system, 3) increase brand power, 4) improve environmental management systems.
2003 Management PolicyIn order to realize Hyundai Motor’s management value of the co-development of human society, it is
essential to systematically and actively prepare our response to the ever-changing business environment,
focused on trust-based management, site-intensive management and transparent management.
Therefore, in 2003 Hyundai Motor prepared a management policy reflecting the social requirements for
improved business transparency, and higher ethical and environmental standards for all employees to
share and practice.
Management Policy
¡ Trust-Based Managementrespect peopleproductive management-labor relationship trust between superiors and subordinatesmeet the expectation of society
¡ Site-Intensive Managementcustomer satisfactiondevelop decent workplace and establish management strategytop priority to quality and service
¡ Transparent Managementtransparent job specificationstransparent transaction with suppliersfair trade guaranteeing mutual benefitpride as a respected company
First, by raising the standards of every aspect of the company to the global level, Hyundai Motor will
secure competitive power in the global market and use its overseas production plants as a foundation
to reach out into the global market.
Second, Hyundai Motor plans to improve its management system to ensure a continuous flow of
profits, by cutting excessive costs to maximize profits while investing in promising business areas.
Focusing on core competencies will also help to minimize the impact of the unstable business
environment on the company and enhance competitive power in the future.
Third, through building trust with its employees based on humanism, Hyundai Motor will build the
‘Great Workplace’ to raise the quality of its employee’s lives.
Last, Hyundai Motor will assume its responsibilities as a corporate citizen, building an environmentally-
friendly management foundation and heightening the sense of ethical awareness throughout the
company. As a major player in the automotive industry and a company which is a major engine of growth
for the domestic economy, Hyundai Motor strives to go beyond its economic responsibilities and to
fulfill higher standards of social responsibility as a member of the local community and of society as a
whole.
Our Vision With the spirit of creative challenge, we arecreating an affluent automotive life for humanity, and con-tributing to harmony and co-prosperity with shareholders,customers and the other stakeholders of the auto industry.The spirit of creative challenge, which has paved the way for Hyundai Motor’s growth, is the core
value of Hyundai Motor. It aims for creativity and innovation in order to actively respond to
changes in the business environment. Based on this core value, we aim to supply automobiles and
related supporting services to enrich the overall quality of human life for both domestic and over-
seas stakeholders. At the same time, we want to move forward into the future in step with all
stakeholders — our shareholders, customers, employees, suppliers, dealers and local communities
— on the basis of mutual trust.
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Hyundai Motor Company 2002/2003 Sustainability Report
Toward Sustainable SocietyRevision of Modern Development Model
Civilization has modernized itself with the help of science. It has achieved economic growth, but also pre-
sented problems such as environmental pollution, resource exhaustion, human rights abuses, labor prob-
lems and unfair trade. These features, which once were recognized as non-fundamental issues, are now
being recognized as serious threats to the sustainable development of our world and the planet we
bequeath to our descendants. There have been a multitude of forums such as the World Summit on
Sustainable Development in Johannesburg, which dealt with these issues reconsidering the quantitative,
growth-oriented modern development model. These days, all aspects of human activities are reformed
for Sustainable Development.
21st Century Development Model: Sustainable Society
Sustainable Society is the new socio-economic model for the 21st century, the core objectives of which
consist of affluent prosperity and harmony among global citizens and future generations, without
neglecting their rights.
Corporate Social Responsibility
Corporate Citizenship is fundamental to business activities that fulfill environmental, social and econom-
ic responsibilities.
1) Environmental Responsibility: minimize the environmental impact we have over all of our business
activities; maximize efficiency of resource use; and create a better environment for future generations.
2) Social Responsibility: have respect for the value and interest of our stakeholders, including but not lim-
ited to shareholders, customers, employees, suppliers and local communities.
3) Economic Responsibility: conduct business in a fair manner; corporate governance should be reason-
able; management practices should be fair and transparent; and the responsibility for management per-
formance should be shared.
Hyundai Motor and SustainabilitySustainability is the underlying value of Hyundai Motor’s vision to accomplish corporate social
responsibility based on global corporate citizenship. Hyundai Motor strives to realize sustainable
development by establishing and conforming to an ethics charter and environmental policy based on
an already existing vision to maximize environmental, social and economic contribution. The ethics
charter and ethics code of conduct represent Hyundai Motor’s will for corporate citizenship. The
global environmental policy is our commitment to social contribution.
Ethics Charter
The Hyundai Motor ethics charter and ethics management program, both introduced in 2001, combine the
ethical, social, economic and legal framework by which employees are expected to adhere to in all aspects
of business. The charter consists of five large categories with detailed components in each category.
Our commitment to ethical management and transparent management was iterated in our chairman’s
annual message in January 2003 and again in a letter sent to all 2,500 suppliers who work with us.
Environmental Vision, Philosophy and Global Environmental Policy
Hyundai Motor has declared the following environmental vision, philosophy and policy to achieve
sustainable development.
Corporate Citizenship(The Sprit of Challenge, Ethics Management)
Sustainable Society
Sustainable Society
Environment Protection
SocialContribution
EconomicGrowth
21st Century Development Model: Sustainable Society
Ethics Charter
¡ Enroot Transparent ManagementDoing business with transparent standardsResist bribery and improper gain
¡ Establish Partnership with SuppliersSupport suppliers in technological innovationsFair trade
¡ Respect Humans, Human Resource ManagementRespect all employeesPromote employee ethics awarenessHuman resource management
¡ Enhance Customer and Shareholder RightsProvide excellent products and servicesProtect customer informationCustomer relations managementEnhance shareholder assets through maximization of management efficiency
¡ Contribute to SocietyContribute to national economic developmentComply with environmental regulationsParticipate in philanthropic activities
SustainabilityA company with a humanitarian spirit.A company that cares for our environmental future.A society in which people, corporations and the environment coexist.Hyundai Motor is preparing for the vision of sustainability.
Results (Jan. 2002 ~ Aug. 2003)Established mid-long term environmentalmanagement strategy (Dec. 2002)
Organized environmental committee (jun. 2003)Organized environmental management strategyplanning team in corporate planning office (Jan. 2003)Established Hyundai Eco-technology ResearchInstitute (Jul. 2003)Organized Marketing/Sales Subcommittee, A/SSubcommitteeCustomer Satisfaction SurveyOrganized environmental accountingsubcommitteeEnvironmental accounting pilot project (supportedby Ministry of Environment (Jul 2002-Apr. 2003)To be implemented from 2004
Developed hybrid electric vehicleDeveloped fuel cell electric vehicleDeveloped gasoline direct injection engineDeveloped VGT diesel engineDeveloped low emission vehicleDeveloped low emission catalystDeveloped air-purifying radiatorDeveloped low pollution post-product equipmentfor diesel vehicleEvaluation software for recycling (RAIS)Distributed ELV dismantling manual Developed parts recycling technologyIntroduced pilot ELV disassembly plantReplaced ARP wash zone typeRecovering Boiler Waste HeatElectro-deposition de-ionized wash water recyclingInstallation of hydraulic oil filterEnvironmentally-friendly packagingImplementation of chemical management system
ISO 14001 Certification in HMICollective logistics system
Environmental training
Supplier environmental management trainingSupport suppliers for ISO 14001 certificationSCEM projectSet up tripartite coorporation model amonggovernment–enterprise-NGOBoong Boong Yi Painting ContestMilk donationActivities for the physically challenged Launched environmental report (Nov. 2002)Launched sustainability report (Dec. 2003)HMC & KMC environmental forum (Nov. 2002)Set up Environment, Health & Safety InformationSystem (Dec. 2003) Disclosed environmental performance throughroad showSet up corporate standard stronger thanenvironmental regulationsParticipate in government pilot projects (SCEM,CMS, ER, EA Guideline)
PolicyRecognize theenvironment as a coreelement of business andcreate corporate value byproactively pursuingenvironmentalmanagement.
Promote the developmentand distribution ofenvironmentally-friendlyproducts.
Dedicate to reducingpollutants and topreserving resources andenergy for sustainable useat all stages of ourproducts’ life cycle, fromdevelopment toproduction, sales, use anddisposal.
Endeavor to provide allemployees withenvironmental trainingprograms, supportsuppliers in environmentalmanagement andcontribute to publicwelfare.
Comply with allinternational and nationalenvironmental regulationsand agreements. Continueto improve theenvironmentalmanagement and publiclydisclose our performance.
StrategyIntegrate environmental management with theexisting business strategy to strengthen corporatecapacitySet up corporate environmental organization
Establish green marketing, sales, service system
Efficient investment management viaenvironmental accounting
Develop and operate environmental KPI
Develop and produce next generation vehicle
Achieve improved fuel efficiency target
Reduce exhaust emission
Increase recycling rate and establish DfE System
Develop cleaner production technology for lowpollution, low cost and high efficiency
Reduce, recycle and reuse waste
Establish overall material management system
ISO 14001 managementIntroduction green logistics management system
Enhance awareness among employees aboutenvironmental productionSupport suppliers in their environmentalmanagement
Set up coorporation system with stakeholders onthe environmentEngaging activities for social contribution
Cooperation with stakeholders via environmentalinformation disclosure
Environmental management IR
Strive to go beyond compliance in environmentalregulations and agreementsCooperate with the government in developingenvironmental laws and policies
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Environmental Targets by Department
3. Environmental Management Strategy
Hyundai Motor improved its existing environmental management strategy by broadening responsibilities
in environmental protection and actively responding to a rapidly changing sustainable world economy.
The strategy covers all major areas of business, including the following corporate value chain: R&D, pur-
chasing, production, marketing and sales, aftermarket, finance and accounting. This is part of a larger
objective to join the top 5 global automakers by 2010.
2. Environmental Organization
For the implementation of the environmental policy, Hyundai Motor organized a corporate-level environ-
mental committee. The committee, led by the chairman, is comprised of three independent committees: the
environmental management committee, the environmental production committee and the environmental
product committee. The committees work together with support from subcommittees to establish corpo-
rate-wide and department-specific targets and action plans based on the environmental policy. Details for
the activities done by each sub-committee can be found in the latter part of this report.
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Hyundai Motor Company 2002/2003 Sustainability Report
Chairman Mong-Koo Chung declaring the ECO GT5
2010 Initiative.
“…companies must be more proactive in assuming responsibility
for environmental conservation…. … with voluntary response to
the challenge of environmental issues. …..living in harmony with
the environment is our new goal.”
- Quoted from Global ECO GT5 2010 declaration
Chairman Mong-Koo Chung, June 2, 2003.
Environmental Committees
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Environmental Value1. ECO GT5 2010
In June 2003, Chairman Mong-Koo Chung declared “Global ECO GT5 2010”. Hyundai Motor aims to rank
among the world’s top five automakers by 2010 in terms of sales, corporate social responsibility and envi-
ronmental performance. This ambitious initiative calls for Hyundai Motor to actively respond to environ-
mental issues and transform itself into a model of corporate sustainability. Hyundai Motor will devise and
implement systematic environmental management strategies, designating key tasks as follows: establish an
environmentally-friendly product development system to meet regulatory requirements and strengthen
environmental performance of its products; reduce pollutants and improve the clean production system
through green purchasing; and establish an environmentally-friendly system for marketing, sales and after-
market. In addition, Hyundai Motor will accelerate development and commercialization of next-generation
environmentally-friendly vehicles such as hybrid electric vehicles and fuel cell electric vehicles. Moreover,
Hyundai Motor will strive to develop more recyclable and easily dismantlable components to contribute to
the conservation of natural resources and the environment.
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Hyundai Motor Company 2002/2003 Sustainability Report
4. Climate Change
Due to rapid economic growth and globalization, the world has been experiencing a drastic increase in
the demand for various means of transportation such as automobiles, commercial jets and freight ships.
The increase in the demand for such means of transportation intensified the use of fossil fuels, resulting
in high emissions of CO2 gas, a major source of global warming. As a signatory to UNFCC, Korean gov-
ernment and the industries are actively participating in the effort to reduce CO2 emissions. Through
Korea Automobile Manufacturers Association (KAMA), Hyundai Motor made a voluntary agreement with
EU to reduce CO2 emissions to 140g/km by 2009. To comply with this agreement, Hyundai Motor is
developing high fuel-efficiency vehicles and next generation vehicles such as hybrid and fuel cell electric
vehicles.
Next Generation Vehicle
The amount of CO2 emitted from automobiles has an inverse relationship with fuel efficiency. Automakers
are attempting to improve the performance of internal combustion engines and to develop next generation
vehicles. Hyundai Motor has been developing environmentally-friendly vehicle from the early 1990s.
Through the electric vehicle development project, Hyundai Motor accumulated technology in electric
power and vehicle energy management, which are widely used in development of hybrid electric vehicles
and fuel cell electric vehicles. Nowadays, hybrid electric vehicles and fuel cell electric vehicles are two of
the most highlighted trends worldwide. They are truly environmentally-friendly vehicles in terms of fuel
efficiency and emission reduction. Hybrid, which means mixture or complex, is the intermediate stage for
developing fuel cell electric vehicles. The hybrid electric vehicle combines merits of internal combustion
engine and electric vehicle to achieve high fuel-efficiency and emission reduction. The fossil fuel depletion
issue and environmental problems led to the development of the hybrid electric vehicle. Meanwhile, the
fuel cell, which is an electro-chemical device, directly produces electricity by reacting hydrogen with
oxygen in the air, without the combustion process. The fuel cell electric vehicle achieves the same level of
emission performance and silence as the electric vehicle and better fuel efficiency than the hybrid
electric vehicle. In comparison to the internal combustion vehicle, it achieves the same level of fuel
supply convenience and drive performance. With hydrogen as fuel, it emits nothing but water. The fuel
cell electric vehicle is expected to reduce environmental pollution and fossil fuel consumption when it is
commercialized. Hyundai Motor developed Elantra hybrid electric vehicle in 1999 and Verna hybrid
electric vehicle in 2000. Also, we pilot serviced County hybrid electric bus during the World Cup in 2002.
There are many technical and economic barriers to commercialize the fuel cell electric vehicle. Its
commercialization has a direct relationship with national energy management strategy as well as
environmental preservation.
Furthermore, it has a monumental impact on industries as a whole. Therefore, governments in many
developed countries are increasing support for relevant research and development of the fuel cell
Area Routes
Head quarter 34
Namyang R&D 82
Ulsan plant 10
Asan plant 23
Jeonju plant 6
Total 155
February 2003: Non-deal road show (Asia/Europe/USA)
March 2003: CSFB Asia Investment Conference (Hong Kong)
April 2003: Explanations for Investors hosted by UBS securities (USA)
May 2003: First quarter result presentation (Korea Stock Exchange)
May 2003: Samsung Investment forum for domestic investors
June 2003: Overseas road show sponsored by Federation of Korean Industries (New York/Boston/London)
August 2003: First half Investor Relations (Korea Stock Exchange)
Individual behavior is the beginning of the solution to the global warming problem. With this in mind,
many employees in Hyundai Motor are commuting by shuttle bus. We operate 155 lines in Korea as
follows:
Number of Shuttle Bus Service Routes (Monthly Average for 2003)
electric vehicle. In addition, major automakers around the world are declaring commercialization of fuel
cell electric vehicles as a main management strategy for the 21st century, followed by a huge investment.
In line with the international trend, Hyundai Motor is actively stepping forward for the development and
commercialization of the fuel cell electric vehicle, which has the same implication as that of the internal
combustion engine vehicle in the 20th century.
The environmental management performance of Hyundai Motor is highly evaluated by international
investment banking initiatives. We are listed on a major Korean sustainability fund (Samsung Eco Fund) as
an environmentally-friendly company, for our commitment to protect the environment and for reporting
our performance to investors and other stakeholders. Since the issuance of the Eco Fund on 16th August
2001, Hyundai Motor has continued the effort in investor relations to communicate with investors on our
environmental and social performance.
Environmental Accounting System
We have been working with the Korean Ministry of Environment since 2001 on a pilot environmental
accounting program that recognizes and quantifies environmental costs for decision makers and
stakeholders. We are currently at the stage of identifying environmental expenditure and plan to report
the results in our 2004 sustainability report.
Communication with Investors
Hyundai Motor communicates its environmental management targets and performance to stakeholders
via road show presentations. Important road show presentations in 2003 are as follows:
The enhancement of the driving distance on a single charge of fuel is the
key technology for the fuel cell electric vehicle. We have to develop
high-pressure hydrogen storage technology. We developed high-pres-
sure hydrogen tank containing 350-bar in June 2001 for the first time in
the world and now we are in the process of developing a 700-bar stor-
age tank. The Santa Fe hydrogen fuel cell electric vehicle is installed with
technologies that guarantee hydrogen safety mechanically and electri-
cally. The Santa Fe hydrogen fuel cell electric vehicle mounted with
high-pressure hydrogen storage tank for the first time in the world in
December 2001.
Classfication
Social Environment Investment Cost
Waste Treatment / Recycling Cost
Environmental Risk Management Cost
Environmental Pollution Reduction (Indirect Cost)
Environmental Pollution Reduction (Direct Cost)
Recycling Revenue
Expense (Million Korean won)
13,455
9,872
800
1,721
32,506
33,713
Environmental Expenditure (2002)
Hyundai Motor Company 2002/2003 Sustainability Report
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5. Awards and Certifications
PBEC Environmental Award
Hyundai Motor was the first automaker selected as a golden winner at the Pacific Basin Economic Council
(PBEC) Environmental Awards in 2002. We were awarded for our achievement in establishing produc-
tion processes such as energy management through corporate environment conservation project,
management of air/water pollutants, waste management, hazardous chemical management, and our
environmental performance, which is about 1/10th of the limit allowed in regulation. We were also
honored for total recycle of wastewater, development of clean
technology, environmentally-friendly product development,
like alternative fuel system, recycling systems, fuel cell electric
vehicles and environmentally-friendly materials.
Our management was also honored for its systematic environ-
mental efforts and policy set up, continuous internal audits, etc.
PBEC was established in 1967 for mutual cooperation and
regional development of Pacific Rim countries. Twenty
member states such as Korea, USA, China, Japan and Russia
set the environmental award and select winners for gold, silver
and bronze annually.
Certification
All domestic Hyundai Motor plants are ISO 14001 certified and designated as environmentally-friendly
company by Korean Ministry of Environment. In addition, both Asan and Jeonju plants are KOSHA 2000
and OHSAS 18001 certified.
ISO 14001 :Headquarter, Ulsan,Namyang R&D, A/S
ISO 14001 : Asan ISO 14001 : JeonjuEnvironmentally-Friendly CompanyCertification : Ulsan
ISO 14001 : HMI
Q: Please tell us about the sustainability that
Hyundai Motor envisions.
Hyundai Motor recognizes sustainability as a new
social paradigm. We dedicate ourselves to our com-
mercial success on one hand and to a high level of
environmental performance and social contribution
on the other. To implement sustainability as a core
value of Hyundai Motor, we will integrate all of the
sustainable performances pertaining to environmental
management, ethics management, employee-welfare
and social contribution into our sustainable manage-
ment. We will continuously improve and systemize
our sustainable management strategy for quality
performance.
Q: Please tell us about the impact of the sustainabil-
ity issue on the automotive sector.
The sustainability issue in the automotive sector has
an immanent impact: it can directly influence the
global economy and the environment. Particularly,
issues on the production and R&D of environmentally-
friendly vehicles and solutions to vehicle safety and
traffic congestion are more urgent concerns in
sustainability. Hyundai Motor will do its best to meet
the social needs and fulfill our social responsibility as
an accountable corporate citizen.
Q: Please tell us about Hyundai Motor’s Environ
mental Management Strategy.
As one of the key management strategies, the
environmental management strategy of Hyundai
Motor covers the entire value chain, including R&D,
purchasing, production, sales and after-sales.
We believe that environmental management is a
critical factor in meeting the global and regional
environmental regulations and the social needs for
sustainable development. Ultimately, Hyundai Motor
aims to become one of the global top 5 automotive
companies by 2010.
Q: Please tell us about Hyundai Motor’s mid- to
long-term environmental plans.
In this year, we are focusing on developing the internal
environmental infrastructures, such as Hyundai Eco-
Technology Research Institute, and restructuring the
internal environmental organization.
Strategic approach toward social contribution and
environmental performance will be taken as a next
step to develop the foundation for sustainability in
Hyundai Motor.
“Strategic approach toward socialcontribution and environmentalperformance will be taken as a nextstep to develop the foundation forsustainability in Hyundai Motor.”
Soon-Chul Choi Senior Vice PresidentCorporate Planning Office
INTERVIEW >>>
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Hyundai Motor Receives Gold Level PBECEnvironmental Award.
Plant
Ulsan
Asan
Jeonju
HMI
Certification
MOE Designated Environmentally-Friendly Company : 1996, 1999, 2003
ISO 14001 : 1995
MOE Designated Environmentally-Friendly Company : 1998, 2001
ISO 14001 : 1998
KOSHA 2000 : 2000
MOE Designated Environmentally-Friendly Company : 1999, 2003
ISO 14001 : 1999
KOSHA 2000 : 2002
OHSAS 18001 : 2002
ISO 14001 2003
Certificates by Facility
Social Value We create harmony among shareholders, customers and other stakeholders to enrich the lives of all.
Hyundai Motor pursues social value through mobility that enriches the lives of all. Through product and
business activities, we are devoted to achieving harmony among stakeholders.
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Hyundai Motor Company 2002/2003 Sustainability Report
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1. Employees as Vital Partners
Human Resources Development
Hyundai Motor’s human resources management can be divided into 4 areas; HR, labor, welfare and education.
For each area, we are implementing human resource management efficiently and reasonably based on
respective action plans. Efforts are made to compensate employees based fairly on performance and to
not discriminate against employees. Employee’s opinions on the HR management system are collected
in various ways and reflected to improve the system.
Working Hours and Leave System
Average overtime hours for production workers recorded in 2002 were 860.4 hours, which were subject
to an overtime payment at 150 to 350 percent of normal hourly wages. A full-time employee worked an
average of 42 hours per week in 2002, which was reduced to 40 hours per week in concordance with an
agreement reached with labor union in August 2003.
Hyundai Motor presently follows a nationally endorsed leave system whereby employees are given one
day of paid leave per month. Hyundai Motor grants one day of paid leave for each year offer an initial year
of consecutive employment year, in addition to annual paid leaves. We also follow relevant labor acts and
labor agreements in additional paid leave days, including a summer vacation period, 4 days of paid leave
during national holidays such as lunar New Year’s Day and Chuseok respectively, and a vacation bonus.
Female employees receive an additional day of paid leave per month and are eligible for 90 days mater-
nity leave during and following pregnancy.
Female Employees
As of the end of 2002, the total number of employees stood at 49,993 with female employees accounting
for 4.3 percent. Women at Hyundai Motor are fulfilling their career goals in various departments and
Hyundai Motor will continue to respect the importance of female employees.
Female Employees
UNEP Mobility Forum
One of the ways we communicate with stakeholders, including 12 automakers and NGOs, is by attending
meetings of the United Nations Environment Programme (UNEP) Mobility Forum since 2001 to share our
thoughts on sustainability issues in the transport sector. Main issues for discussion are development of
sustainability reporting guidelines in the auto sector and cooperation to commercialize environmentally
-friendly vehicles.
Sustainable mobility is about balancing the needs of society to allow for
free and cost effective movement of people, goods and services and
preserve a healthy environment capable of sustaining life for current and
future generations. Achieving this balance is a complex and compelling
challenge; one that requires continuous dialogue and coordinated action
from all relevant stakeholders, including governments, industry, and
environmental and consumer groups.
Facilitating this dialogue and cooperation is the basis of the UNEP Mobility
Forum-a voluntary initiative of 13 automotive manufactures from Europe,
Asia and the United States, and one supplier, working jointly with UNEP to
protect the environment while maintaining healthy and profitable
businesses operating within the framework of sustainable development.
(Excerpt from ‘Getting There’ , UNEP Mobility Forum)
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Hyundai Motor Company 2002/2003 Sustainability Report
Employee Welfare Program
Hyundai Motor provides an employee benefits package including medical examinations and various
welfare programs to contribute to our employees’ quality of life, and have them be confident to be a
member of the Hyundai Motor family.
Medical Welfare
Employees of Hyundai Motor in Korea receive regular medical examinations including oriental medical
diagnosis, for the first time in Korea - once every two years for office workers and once every year for
production workers. The families of the employees receive subsidies for medical services. A total of 9,633
employees over the age of 40 and their families received complete medical examinations sponsored by
Hyundai Motor at a cost of 1.1 billion Korean won. In partnership with OnlineMed, Hyundai Motor offers an
online medical diagnosis and information site on its corporate intranet system, accessible anytime by
employees throughout the company.
National Health Insurance
Hyundai Motor and its employees each pay 3.63 percent of a standard monthly salary toward National
Health Insurance.
National Pension Fund
In pursuant to the National Pension Act, a full-time employee is required to pay 9 percent of his or her
standard monthly salary into the pension fund, of which Hyundai Motor bears fifty percent (4.5 percent of
a standard monthly salary) of the payment.
Private Pension Fund
The company pays 20,000 Korean won per month for each employee toward a private pension fund for
10 years from the date of subscription. Employees are also eligible for a tax benefit of 40 percent against
their yearly insurance premiums.
Industrial Accident Compensation Insurance
While trying to reduce the frequency and severity of workplace injuries and illnesses, Hyundai Motor tries
to act fairly and quickly when one does occur. In agreement with the Korea Labor Welfare Corporation
(KLWC) and its related acts, Hyundai Motor compensates 20 percent of the average salary while KLWC
assumes 70 percent, Hyundai Motor pays the bonus to employees on leave due to industrial accidents.
The cost of medical treatment is paid by KWLC.
Employment Insurance
Through an employment insurance policy, Hyundai Motor cooperates with government in providing
employment security and compensation in the event of non-voluntary unemployment. The cost of
insurance is evenly divided between company and employee, each paying 50 percent of the premium.
Housing Loans
Hyundai Motor offers mortgages at below market rates. Employees can receive housing loans from 5 to
15 million Korean won for a period of 5 to 15 years at an interest rate of 2 percent APR. The company also
offers its employees company housing, apartments and dormitories.
Employee Stock Ownership
The employee shareholder program gives priority to employees if they decide to purchase company shares.
The program also earmarks up to 20 percent of total public subscriptions to be made available to low-income
and long-term employees. The association has offices at Seoul headquarters and in Ulsan plant.
Employee Clubs
We encourage and support employee clubs that bring people together and create strong bonds in the
workplace. The company subsidizes their activities up to 50 percent of their operating budget for the club
with more than 15 members (30 members at production plants).
Departmental Meeting
The company promotes friendship across administrative units, for example by offering departments with
4,000~9,000 Korean won per person a month for friendship gatherings.
Leisure Activities
The company provides facilities for employees’ various leisure activities in their off-work days, such as a
weekend farm, a cultural center and a country pension house for employees.
Oriental Medical Diagnosis
Hyundai Motor recognizes oriental medicaldiagnosis in its medical benefits package, thefirst company to do so in Korea. As a result,employees at our company can receive a widerange of medical welfare.
Online Medical Diagnosis
Hyundai Motor operates an online medical diagno-sis center in cooperation with OnlineMed Co. ofKorea. Employees can use the Hyundai Motor’sintranet, Autoway, to access the system for fastand convenient medical information.
Employee Night-out Internet Club Festival
Cyber Ethics Education
Hyundai Motor has adopted ethics management to fulfill its
corporate dues such as economical, legal, social and ethical
responsibilities. For efficient implementation, Hyundai Motor
introduced an ethics management system and has introduced
the “Ethics Management Specialist Education Program”.
Hyundai Motor regularly invites its employees to participate in
ethical management forums with external instructors. A total of
6,330 Hyundai Motor employees have participated in the
forums.
Hyundai Education Management Introduction System (HEMIS)
HEMIS is an online portal site made accessible for Hyundai
Motor employees. It contains overall training related information
such as annual training procedure and program summaries.
(http://hemis.hyundai-motor.com)
Health & Safety
Hyundai Motor continues its support for accident prevention
and health & safety improvement measures. At production
lines, all employees are required to participate in mandatory
Health & Safety training for 2 hours a month as stipulated by
local regulation. We publish weekly safety news and safety
handbooks to further stress the importance of on-the-job
safety. In the year 2002, 23,388 employees (total 496 hours,
273 classes) completed the health education program on
ergonomics, diabetes, high-blood pressure and obesity.
Industrial Accidents
In 2002, there were 513 injuries and 11 fatalities at Hyundai Motor. The accident rate for the year was 1.06
percent, lower than the industry average of 1.22 percent and the automobile industry average of 1.15 percent.
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Hyundai Motor Company 2002/2003 Sustainability Report
Au
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HEMIS
Ergonomics Training
Cyber Ethics Education
¢”Present Utilization
Basic Competence
Generalist
Basic Requirement
as a Member of HMC
Common Learning
Track
Per Position/Grade
Consistency with
Strategy
• CEO Strategy Seminar
• New Manager Course
• New General Manager Course
• New Deputy General
Manager Course
• E-Learning OES Course
• Job Competence
• Development Course
• New Recruit Course
• Engineer/4 Grade Course
• Change Management
Education
Job Competence
Specialist
Job Specialist
Optional Learning Track
Self-Leading Learning Program
Development of Employability
• Management Reading Club
• Foreign Language Course
• Cyber Education(System)
• Globalization Education
• 6 Sigma Education
• Career Development Education
• Digitalized Information
Education
• Quality/Productivity
Improvement
• Job Competence
Development Training
¢”Future Preparation
Core Competence
Future Value Leader
Core Human Resource
Advanced Learning Track
Tailor made Learning Program
Value Creation for Future
Organization
• Management Coaching
• CEO Course
• Global Management Course
• Management Outsourcing
• Studying/Training abroad
HMC MBA Course
Industrial Accident RateHuman Resource Development Plan
Education
Employee training programs are the key component of our human resource development plan. Hyundai
Motor provides a number of training programs to enhance the capabilities of employees within the
organization and to improve individual aptitude in performing their assignments. Our effort on educating
people extends beyond our own employees to include their families. Hyundai Motor offers education
through programs for our employees’ families.
Human Resources Policy
Hyundai Motor has established a new, more progressive human
resource policy. Under the motto, ‘Continuous Learning, Spirit of
Challenge and Public Service’, Hyundai Motor provides its employees
with the tools and training for self-development and maximizing
individual potential while helping the company achieve our goal of
reaching the global top 5 by 2010. The training emphasizes each
employee’s professional knowledge, spirit of challenge and serving
customers with a sense of responsibility to the community.
Education System
Education programs are job-specific and function oriented. They are categorized in 4 larger divisions in
general management, production, sales and repair.
Education Process
Each education program is executed in a step-by-step process. The 3-step education process is made of;
assessment stage, implementation stage and evaluation stage. The evaluation stage allows us to improve our
human resources development programs through scoring individual job performances.
Assessment phase
Course Development Process• Education Requirements Survey• Clarification of education purpose• Course Development
Implementation phase
Education• Diversity Education Method• Education Operation System Application
Evaluation phase
Performance Measurement• Four-Step Evaluation• Diversity Evaluation Method
120
100
80
60
40
20
0’98 ’99 ’00 ’01 ’02 Year
Hour
Training Hour Per Capita
3-Step Education Development
*The industrial accident rate has
increased in the year 2002. It is due
to a revision in the definition of
industrial accident in the Industrial
Safety and Health Act, 2002.
Employee Relations
Dialogues with Employee
Hyundai Motor holds regular employee meetings to present corporate management strategies and
business performance expectations. The official employee meeting is held quarterly with the union while
non-routine employee meetings are held on need basis. In the first half of 2003, our production facility in
Ulsan held 10 employee meetings. We take these opportunities to ask employees how they feel about the
effectiveness of management-employee communication. According to one poll, 77.1 percent of employees
were satisfied with the level of information sharing between management and employees, compared to
47.5 percent satisfaction before the meeting was held. A total of 83.4 percent of respondents answered
that the briefings helped them to understand the direction of management strategy and 91.3 percent
answered that they would share with subordinates what they learned at the briefings. Employee
meetings establish the foundation for improving management-employee relationship.
Event for Employees
We organize a number of events for employees and their families, including ‘love and respect your
parents’ event, the ‘Cherry Blossom Festival’ at the Ulsan plant and annual sports competitions. Such
events help bring our employees together and help create bonds between labor and management.
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Hyundai Motor Company 2002/2003 Sustainability Report
29
2. Social Contribution
Social Contribution Committee (SCC)
We operate the Social Contribution Committee chaired by the CEO. The committee plans, performs and
evaluates all activities related to social contribution. The SCC is expanding its scope of work and conducts
various environmental activities including migratory bird protection, local streams clean up and sponsoring
various NGO activities.
Social Contribution Committee
‘Love and Respect Your Parents’ Event
We have been hosting this event at Asanplant, Ulsan plant and Seoul headquarters.In 2002, we had 20 separate events, with8,450 people participating.
Cherry Blossom Festival
Ulsan assembly plant holds a cherry blos-som festival for employees, employeefamilies and local communities each spring.The event has become a local event forfamilies who come to watch the blossomson some 300 cherry trees within our facility.
3. Customer Safety
Hyundai Motor recognizes assurance of driver, passenger and pedestrian safety as the key element for
our social responsibility. We are developing Advanced Safety Vehicle (ASV) system, which can be
characterized by the use of artificial intelligence. Getz, a small-sized passenger vehicle equipped with
Frontal Crash ASV system, scored top rating in the Euro New Car Assessment Program (NCAP).
In line with such technical advancements, Hyundai Motor is engaged in safety promotion programs such
as Junior Traffic Safety Campaign.
Advanced Safety Vehicle (ASV)
Hyundai Motor is planning to complete the development of the core technology in ASV by 2010.
The ASV system could reduce the traffic accident rate by as much as 50 percent. We are looking to lead
the world in the field of intelligent vehicle.
Multipurpose Test Track
Hyundai Motor is building a test track in the Mojave Desert, 160 km outside of Los Angeles, California. It is
targeted to complete in May 2004. It will be 10 times larger than any of our three domestic test tracks and
will be equipped with a multi-purpose test driveway including overthrow test of which 3.7 km segment
has 8 percent maximum slope.
Junior Traffic Safety Campaign
Hyundai Motor sponsors the Junior Traffic Safety
Campaign together with a safety advocacy group in
Korea. At 27 sales centers around the country, we pro-
vide comprehensive, free education programs on
improving child occupant safety.
Cultural Events
Since 2001, Hyundai Motor has presented monthly cultural programs in performing arts at the 800-seat
concert hall located at Seoul headquarters. We have been inviting our employees, employee families as
well as the community.
Global Activities
As an official supporter of the UN and a member of the global village, Hyundai Motor provides aid to the
disadvantaged members of the world. We have long been engaged in a variety of activities to help the
disadvantaged members of the world. We organized field trips for children living in remote and often
underprivileged areas. At the Hyundai Motor tour, the children learn more about our operations, discover
the science behind automobile production and have fun.
Activities for the Physically Challenged
We recently purchased 3,000 wheelchairs from the American Wheelchair Foundation and donated them
to the South Korean Red Cross. The wheelchairs were delivered to the elderly, the physically challenged
with low income and small-scale infirmaries in remote regions. Hyundai Motor produces vehicles including
Getz, Accent, Elantra, Sonata, XG, Matrix and H-1 for physically challenged drivers.
Regional Activities
Hyundai Motor supports those who have suffered through natural disasters as well as the economically
challenged, by the means of donation. We worked closely with the government-operated donation
organization, Community Chest of Korea, not only to continue its donation effort but also to advance it
to the next level. Hyundai Motor donated 2 billion Korean won to the bereaved in the Daegu subway
conflagration in February 2003. In addition, we provided hearses, memorial chrysanthemums and funeral
services, including 1,500 volunteer workers from 100 Hyundai Motor regional offices and dealerships in the
region. In November of 2002, we donated 1 litre of milk to a children’s advocacy group for every
passenger vehicle, recreational vehicle and commercial vehicle (under 2.5 tons) that we sold.
We delivered 60 thousand litres of milk to 15 thousand children across the country.
Research & Development Programs
Hyundai Motor established a number of research & development programs with its major suppliers to
co-develop and exchange information on new technologies. Also, Hyundai Motor selected academic
institutes, to fund and to donate laboratory equipment. We will continue in our support to benefit the field
of R&D for our industry.
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Hyundai Motor Company 2002/2003 Sustainability Report
ASV Product Development
1. A Cultural Event at Seoul Headquarter
2. Hyundai Motor as an UN Supporter
3. Matrix Modified for The Physically Challenged
4. Fundraiser for the Misfortuned Members of Society
5. Donation of School Bus to Elementary School ; HMI
1.
3.
2.
Junior Traffic Safety Campaign
Strategic product development for Safety
parking assist system night vision systempre-safe systemenvironmentrecognition system
adaptive cruisecontrol system
4. 5.
1. Road Condition Sensor
2. Magnetic Sensor
3. Vehicle Distance Sensor
4. Forward Obstacle Sensor
5. Blind Spot Monitoring Camera
6. Drive Recorder
7. Side Obstacle Sensor
8. Air Pressure Sensor
9. In-side Door Lock/Unlock
10. Rear Obstacle Sensor
11. GPS Sensor
12. Airbag
13. Road-to-Vehicle/Vehicle-to-
Vehicle Communication System
14. Rear View Camera
15. Water Repelling Wind Shield
16. Seat-belt Pre-tensioner
17. Driver Monitoring Sensor
18. Head-Up Display
19. Steering Angle Sensor
20.Electronic Control Throttle
21. Electronic Control Brake
22. Fire Detection Sensor
23. Vehicle Speed, Acceleration
Sensor
24.Collision Detection Sensor
25. Pedestrian Collision Injury
Reduction Structure
26. Electronic Control Steering
27. Message Display System
28. Hands-free System
Economic Value1. Economic impact
The automotive industry has a significant impact on regional and global economies, particularly considering
its influence on other major industries such as manufacturing, transportation and energy. According to UNEP
Auto Sector Report of 2002, one job in the auto sector influences 7 to 10 jobs in other sectors.
Some 1.5 million people in Korea were employed in automotive
and automotive-related industries in 2001. This figure can be
broken down into major sectors: 704,000 in transport and usage,
257,000 in logistics, 234,000 in auto manufacturing, 214,000 in
auto sales and repair, and 78,000 in material production. In
2002, Hyundai Motor accounted for some 49.5 percent of the
domestic market, making Hyundai vehicles the most driven
passenger vehicles in Korea and making Hyundai the most
powerful automobile brand in the country. This means that Hyundai Motor impacts a large proportion of
the 1.5 million people who work in related industries, not including the millions of people who use our
products. As a major exporter in this country, Hyundai Motor also exerts a considerable influence on the
regional economy.
2. Corporate Governance
In 2000, Hyundai Motor was separated from former Hyundai group and became an independent auto
specialized company. The board of directors at Hyundai Motor is comprised of 4 internal and 4 external
directors. Our internal directors come from major shareholders, including Hyundai MOBIS and
DaimlerChrysler. Our external directors come from diverse backgrounds: a retired professor, a lawyer,
a tax officer and a Mitsubishi representative.
3. Transparency and Fairness
Compliance Program for Fair Trade
Hyundai Motor is working toward a more transparent manage-
ment of its business through the implementation of some key
initiatives: Hyundai Motor and its 18 domestic affiliates imple-
mented a regulation Compliance Program (CP) in 2002. At the
corporate level, we promote transparent management, fair trade
compliance announcements and fair trade compliance for our
affiliates. We monitor the progress of our fair trade effort through
non-fair trading prevention program.
Cyber Audit Office
The Hyundai Motor cyber audit office, part of our ethics manage-
ment initiative, presents our ethics charter and business princi-
ples on the web, giving employees clear standards to help
them make the right decisions at work. Since April 2002 we
have been operating a cyber reporting center on the website
to report illegal or unfair practices and suggestions for management. These reports are fed back to
management and reporters are informed of the results. To mitigate future risks and to improve related
systems, we are planning to develop a PR program that outlines our performance with respect to ethics
management.
Value Advanced Automotive Trade Zone (VAATZ)
Procurement System
VAATZ is Hyundai Motor’s e-marketplace that streamlines the
entire procurement process. It promotes transparency through
open bidding and creates an environment for competitive pricing
through reverse auction. By linking suppliers with Hyundai Motor
and Kia Motors, VAATZ leverages our collective buying power.
It also helps suppliers to be more competitive and profitable,
by allowing them to voluntarily reduce costs, rather than
accept forced cost reductions.
4. Financial performance
5. Shareholders
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Hyundai Motor Company 2002/2003 Sustainability Report
2002 Financial Highlights
Sales 26,337 billion Korean won
Net income 1,443 billion Korean won
Total assets 20, 867 billion Korean won
Amount of capital 1,476 billion Korean won
2002 Export sales by region
North America 478,178 units (51.5%)
Europe 252,260 units (27%)
South Africa and the Middle East 80,514 units (8.5%)
Asia Pacific 58,756 units (6.5%)
Central and South America 59,422 (6.5%)
Shareholders (as of Jun. 30, 2003)
Hyundai MOBIS 13.21%
DaimlerChrysler AG 4.87%
INI Steel 10.46%
Mong-Koo Chung and 17 persons 4.08%
VAATZ Homepage
SalesKorean Won in billions,
Net IncomeKorean Won in billions,
Total AssetsKorean Won in billions,
Total Workforce in Auto-Related Industries in Korea (National Statistical Office, 2001)
Auto Manufacturing 234,000
Raw Material 78,000
Transport, Usage 704,000
Logistics, Etc., 257,000
Auto Sales, Repair 214,000
Total 1,487,000
Cyber Audit Office
Sustainability Activities by DepartmentSustainability activities of Hyundai Motor are continuously improving with the help ofa creative management strategy and corporate-wide efforts. At this very moment, Hyundai Motor works to ensure a more prosperous future formankind, the environment and the company.
Policies and Strategies in R&D
R&DR&D and Design departments are the starting point of our sustainability efforts;
they have a significant influence on the sustainability of our business. We see four
key areas of sustainable development: 1) next generation vehicles, 2) fuel efficiency
improvement, 3) exhaust gas reduction and 4) improvement on recyclability &
Design for Environment (DfE). Hyundai Motor is building strategies and plans to
focus on these key areas. To develop environmentally-friendly vehicles and create
other environment-related technologies, we established the Hyundai Eco-technol-
ogy Research Institute (HERI) in July 2003. Also, we reinforced the role of the
Environmental Product Committee to reflect the environmental issues in product
development decision-making.
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Hyundai Motor Company 2002/2003 Sustainability Report
1. Next Generation Vehicles
Hybrid Electric Vehicle (HEV)
The hybrid electric vehicle adopts the advantages from internal combustion engine
vehicle as well as electric vehicle, satisfying the demand for low emissions and high
fuel efficiency. The parallel type hybrid electric vehicle utilizes both internal
combustion engine and electrical motor as the power source. The serial type hybrid
electric vehicle utilizes electric motor as the power source with the internal
combustion engine as a generator. In comparison to the serial type, the parallel type
hybrid electric vehicle is characterized by superior energy efficiency and the use of
a smaller battery. According to research results, the parallel type hybrid electric
vehicle is believed to have high potential for replacing the conventional internal
combustion engine vehicles.
Getz HEV Pilot Service Program
After developing its first hybrid electric vehicle, FGV-1 in 1995, Hyundai Motor devel-
oped Getz HEV in 2002. Getz HEV is a parallel type hybrid electric vehicle with an
electric motor installed between the engine and the transmission. It has a 1.4-liter
gasoline engine, a 12-kilowatt electric motor and Continuously Variable Transmission
(CVT). Getz HEV is 54 percent more fuel efficient than its gasoline models and is
designated as an Ultra Low Emission Vehicle (ULEV). From 2004, Hyundai Motor is
planning its road demonstration of Getz HEV in the metropolitan area of Seoul
before its commercialization. The pilot service is expected to answer the environ-
mental impact and its optimal performance at a practical level. Hyundai Motor
would like to comply with Super Ultra Low Emission Vehicle (SULEV) standards for
all our fleet through continuing hybrid electric vehicle development processes.
Fuel Cell Electric Vehicle (FCEV)
Hyundai Motor established a fuel cell development team in the early 1990s. The
team is responsible for finding the solutions to the energy and environmental issues
for automobiles. In June 2000, we joined the California Fuel Cell Partnership
(CaFCP) to take an initiative for developing technology to commercialize vehicles
utilizing alternative energy. Santa Fe FCEV, Hyundai Motor’s first fuel cell vehicle,
was introduced in March 2001. It was developed through a joint project with United
Technologies Corp. Fuel Cells (UTCFC). In October 2001, it won two gold and two
silver medals in the fuel cell electric vehicle division at the Michelin Bibendum
Challenge in California. Santa Fe FCEV successfully completed the 2002 Fuel Cell
Road Rally held in Sacramento, California, hosted by CaFCP. Fuel cell electric vehi-
cles are tested for performance and endurance in a course along the Pacific coast
from Monterey to Santa Barbara. Santa Fe FCEV successfully finished the 300-mile
racecourse within the 3-day timeline. Santa Fe FCEV has a maximum driving
distance of 160 km, fuel cell output of 75 kW, maximum speed of 124 km/h and
0-100 km/h acceleration in 18 seconds. The hydrogen fuel cell electric vehicle
requires high-pressure hydrogen storage technology. In June 2001, Hyundai Motor
developed a 350-bar hydrogen storage tank for the first time in the world and is
now developing a 700-bar storage tank.
TypeEngineMotorBatteryTransmissionHighest SpeedFuel EfficiencyEmission
Parallel 1400cc Gasoline12kW BLDCNi-MHCVT187km/hImproved by 54%ULEV
1. Namyang R&D Center
2. Hyundai Kia Motor Europe Engineering Center
3. Hyundai Motor Japan R&D Center
4. Hyundai America Technical Center Inc.
Getz HEV.
1. Santa Fe FCEV
2. Fuel Cell Road Rally 2002
CategoryNext generation vehicles
Fuel efficiencyimprovement
Exhaust gas reduction
Recyclability & DfEimprovement
PoliciesDevelopment &commercialization ofnext generation vehicles
Achievement ofimproved fuel efficiencytarget
Development of low-emission vehicles
Development of DfE based on recyclingand LCA
Strategies- commercialization of HEV in 2006- commercialization of FCEV in 2010
- Corporate average fuel efficiency : 170g/km by 2004- Average CO2 emissions 140g/km by 2009- Responding to fuel efficiency regulations by regions
- Development of low maintenance and low emissions vehicles
- Early response of regulations by regions
- Improvement on recycling technology development and hazardous substances management system
– LCA and DfE in product development
Environmentally-Friendly Vehicle Development Flow
The success in the 700-Bar project would extend Santa Fe FCEV’s maximum
driving distance up to 320 km at single charge, equivalent to that of a gasoline vehicle.
Another challenge for commercializing FCEV is to make it operable at below zero
degree Celsius condition. We work with UTCFC on such second-generation FCEV
technologies, which are expected to be completed by 2004. Through road tests
and pilot services in practical conditions, Hyundai Motor will develop technologies
for the commercialization of FCEV by 2010.
H2 700-Bar Project
Hyundai Motor is developing the high-pressure hydrogen storage tank for the
improvement in driving distance by participating in the H2 700-Bar Project. The
project is executed in a consortium with Toyota, Nissan, DaimlerChrysler, Ford and
Peugeot, and is led by Powertech Lab Inc, Canada and Kokan Drum Co., Japan,
with the goal of commercializing high-pressure hydrogen storage tank by 2005.
2. Improving Fuel Efficiency
Gasoline Direct Injection Engine
Unlike the conventional gasoline engine that supplies air and fuel mixture, the
Hyundai Motor gasoline direct injection engine supplies air and fuel separately.
The direct injection engine improves fuel efficiency and engine performance and
reduces emissions in comparison to conventional engines.
Reduction of Pumping Loss
Air flows into the vacuumed combustion cylinder by downward movement of the
piston in a gasoline engine. The smaller the opening of the intake valve, the greater
the airflow resistance. The greater the airflow resistance, the more power to pump
the piston. The power lost in pumping the piston at high airflow resistance condition
results in engine output loss. The engine output loss is also called pumping loss. The
direct injection engine combusts at 40:1 air to fuel mixture ratio as opposed to the
conventional engine that combusts at 14.7:1. This represents a 30 percent improve-
ment in fuel efficiency.
Improvement of Volumetric Efficiency
The air in the cylinder chamber cools rapidly as the fuel is injected and evaporates.
The lower the temperature of the air in the chamber, the more volumetric efficiency
and anti-knocking improves, which in turn results in a 10 percent increase in engine
performance through better compression ratio and spark timing adjustment.
Complete Combustion and Exhaust Gas Recirculation (EGR) Valve
Conventional engine emits HC, CO and NOx. The amount of exhaust gas depends on
the air-fuel ratio: as the air-fuel ratio lowers, the amount of HC and CO emission
decreases while NOx increases. Gasoline Direct Injection Engine combusts fuel
completely at ultra low air-fuel ratio hence emitting reduced amounts of HC and CO.
The amount of NOx emission is reduced by utilizing a large capacity catalyst and
EGR valve.
Variable Geometry Turbocharger (VGT)
VGT diesel engine enhances fuel efficiency while reducing emissions. It optimizes
the driving force over wide ranges of speed by controlling the amount and flow rate
of exhaust gas through a turbocharger. The 1,991 cc VGT diesel engine produces a
maximum of 125 horsepower, a 13 percent improvement, in comparison to current
common rail direct injection engines. It also improves the maximum torque by 29.5
kgm/rpm and fuel efficiency by 5 to 10 percent. The Trajet XG and Santa Fe utilizes
this VGT diesel engine.
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Hyundai Motor Company 2002/2003 Sustainability Report
Variable Geometry Turbocharger (VGT)
Reduction of Pumping Loss
Vice Chairman Dong-Jin Kim at The Signing of an
Agreement with UTCFC on Joint Fuel Cell Development.
Vane Control Actuator
Variable Turbine
Inlet Vanes
Improvement of Volumetric Efficiency
Reduction of Exhaust Gas by EGR Valve
Hyundai Motor Company 2002/2003 Sustainability Report
Diesel Particulate Filter (DPF)
The demand for diesel-powered vehicle is increasing because of its environmental
advantage over gasoline-powered counterparts: diesel engine emits less CO2 and is
more fuel-efficient. However, the diesel engine emits more NOx and particulate
matter. To cope with those issues as well as to comply with Euro-IV, Hyundai Motor
is researching HC, CO, NOx and particulate matter emission reduction technology
for diesel engine. We improved our existing oxidation catalyst technology to reduce
HC and CO emission by 90 percent. By improving the diesel engine combustion
efficiency, NOx emission is reduced by 15 percent. Hyundai Motor developed DPF,
which can reduce particulate matter emission from diesel engine by 90 percent.
4. Recycling
End-of-Life Vehicle (ELV) Directive has been strictly mandated in Europe since July
2002 and from 2005 in Japan. Environmental restrictions are becoming more
comprehensive and stringent especially in the areas of emission and recycling. We
are developing recycling technologies to recycle up to 95 percent of end-of-life
vehicle. As part of our recycling effort, Hyundai Motor adopted Life Cycle
Assessment (LCA) to analyze environmental impact of a vehicle from its initial
designing stage to dismantlement. The Recycling Subcommittee is established
under the Environmental Product Committee to effectively respond to overall
automobile recycling issues.
4140
3. Emission Reduction
Low Emission Vehicle
Governments around the world regulate emissions from both present and future
vehicles through initiatives such as LEV II Program (California, USA), Euro-III and
Euro-IV (Europe). Hyundai Motor plans to respond to ULEV for all of its fleets by
2005. We have commercialized Elantra complying with SULEV standard since
December 2002. The SULEV is an emission standard five times stricter than ULEV;
Hyundai Motor became the fourth company to commercialize a model complying
with SULEV. As of 2002, all models from Hyundai Motor met Euro-III and most of
our gasoline vehicles met Euro-IV. In 2003, the Korean government introduced a
new emission standard based on Low Emissions Vehicle (LEV) in North America. In
2002, Hyundai Motor had already launched Elantra in compliance with LEV.
Emission Catalysts
Super Ultra Low Emission Catalyst
Hyundai Motor developed a super ultra low emission catalyst by integrating
catalytic material technology for after-treatment, catalyst technology, sensor
technology and engine & fuel injection system control technology. Hyundai Motor
will continue to innovate its catalyst technologies to meet SULEV for all of its fleets.
Equivalent Zero Emission Vehicle (EZEV)
Hyundai Motor is aiming to develop a most advanced emission control technology.
With this aim, we developed new catalyst technology, absorbent for cold-start
hydrocarbon, ultra-thin wall catalyst & metal catalyst technology and dual-pipe
technology for fast-warm up. When these technologies combine with our air-puri-
fying radiator technology, all fleets from Hyundai Motor can achieve 1/10th of the
SULEV standard.
Air-purifying Radiator
Ozone is a corrosive substance generated when hydrocarbon and nitrogen oxide
undergo a photochemical reaction. Ozone in the lower atmosphere is harmful to the
human body, causing respiratory illnesses. The air-purifying radiator reduces ozone
density in the air by converting ozone into oxygen through an ozone decomposing
catalyst. Hyundai Motor completed the development of an air-purifying radiator
and began installing it on selected models in 2003.
DPF (Diesel Particulate Filter)
ƒ Temperature Sensor
ƒ Pipe for Differential Pressure Measurement
ƒ Catalyst Coating
Exhaust Gas Inspection
Recyclability Assessment Information System
in design process
StandardsULEVSULEV
NMOG0.0550.01
CO2.11.0
NOx0.070.02
Emission Standard in North America (LEV-II) (Unit : g/mile @ 120kmile)
*NMOG : Non Methane Organic Compounds
Recycling Regulations
Description
EU ELV Directive(2000/53/EC)Subject : M1, N1
Japan Recycle Act
Korea Resource Conservationand Recycling Act
2002 2003 2004 2005 2006 2007 2015
* Recycling means parts reuse, material recycling and energy recovery.
4Free Take Back of ELV(Vehicles sold after Jul. 1, 2002)
4Free Take Back of ELV (All Vehicles)
4Restriction of Hazardous Substances Use(Hg, Cd, Pb, Cr6+)
4Recyclability85%
4Recyclability95%
4Implementation of Refrigerant Recovery and Destruction
4Revision of Preliminary Assessment Clause
4Recyclability85%
4Recyclability85%
4Recyclability95%
4Recyclability95%
4Mandatory Treatment of and ASR
Design for Recycling (DfR)
Recyclability Assessment Information System in design process (RAIS)
RAIS is an intranet based recyclability evaluation program, started in October 2002.
The system provides designers with a platform to evaluate material recyclability,
parts recyclability and ease of dismantling. The program also provides information
on recyclability, which will soon be adopted by EU for vehicle type approval.
Design for Disassembly (DfD)
As part of our DfE effort, Hyundai Motor has been pursuing DfD since 1998. In 2002,
we started to develop DfD in a joint research with Pusan National University. The
DfD evaluation tools and design guideline will be integrated into the RAIS.
Material Marking for Recycling
Since July 1992, Hyundai Motor has been labeling material marking on all plastic
parts over 100 grams in passenger vehicles and light trucks. It is to ease the seg-
regation of parts by material nature when the parts are dismantled. In addition,
Hyundai Motor plans to mark all rubber parts over 200 grams to respond to EU ELV
Directive from 2003. Hyundai Motor plans to strengthen the internal material marking
standard: all parts over 50 grams will be required for material marking.
Reduction of Hazardous Materials
Hyundai Motor is developing environmentally-friendly vehicles to preserve the
environment and to respond to environmental restrictions. In July 2003, we set up
a hazardous material management protocol to comply with EU Directive on
Hazardous Substance. Furthermore, Hyundai Motor is developing an internal
hazardous substance management system to manage hazardous substance uses
in our own facilities as well as our 450 parts and material suppliers. We are currently
preparing to register ourselves, and all of our suppliers, to International Material
Data System (IMDS). Our design specification criteria include restriction on the use
of hazardous substances listed in EU ELV Directive. Moreover, all materials and
parts are laboratory tested for hazardous substance analysis. Hyundai Motor is
developing alternative material and technology for materials and parts found
nonconforming to the expectation specified by EU ELV Directive. For instance,
Hyundai Motor has developed and commercialized lead free fuel tanks, lead-free
PVC cable coatings, lead-free electro-deposition paints as well as aluminum bearings
and bushing. In the meantime, we are developing a response plan on grace period
for meeting the EU ELV Directive.
Dismantling Information
Hyundai Motor has been providing dismantling information through International
Dismantling Information System (IDIS) in EU. The dismantling manuals for all new
models, including Getz, were uploaded into IDIS in 2002. As a voluntary effort,
we are distributing the dismantling manuals for Elantra and Getz to all domestic
dismantling sites.
Hyundai Motor Company 2002/2003 Sustainability Report
43
Waste Parts Recycling Technology
Hyundai Motor has been working to improve the environmentally-friendliness of
our products such as developing waste parts recycling technologies. The research
on waste rubber and plastic part recycling technology is at the stage of practical
application. In addition, Hyundai Motor has successfully developed waste bumper
paint coating removal technology: the paint coating on waste bumper has been the
most significant challenge in bumper recycling. The new technology will enable us
to recycle previously non-recyclable waste bumpers. Furthermore, Hyundai Motor
has developed recycling technology for floor mat and seat foam, which were made
of mixed materials and components presenting difficulty in recycling.
The recycled floor mats and seat foams are recycled to make trunk trims and noise
absorption material. This technology is currently applied to Sonata and XG models.
For large plastic parts assembled with multi-components, such as dashboards,
Hyundai Motor is developing disassembling technology for part and component
segregation.
Rubber Recycling
The thermosetting rubber is difficult and uneconomical to recycle. Hence, research
on thermosetting rubber recycling has not been pursued. On the contrary, Hyundai
Motor has developed thermosetting rubber recycling technology in which waste
weather strips are pulverized to be recycled as noise absorbing and/or weather
strip raw material.
Waste Bumper Recycling System
For the first time in Korea, Hyundai Motor is establishing a waste bumper recycling
system to recycle waste bumper collected from dismantling sites and after service
centers. The collected waste bumpers will be recycled to bumper cover and/or
engine under-cover by utilizing bumper paints coating removal technology and
compounding technology. Hyundai Motor plans to implement this system by
November 2003.
42
1. Dismantling Manual for Elantra and Getz
2. Material Marking (Plastic Container)
3. Material Marking (Plastic Injection Mold
Parts)
Waste Bumper Recycling System
End-of-Life Vehicle (ELV) Recycling
ELV Disassembly Plant
Hyundai Motor is building the nation’s first pilot ELV disassembly plant to assess the
operability of the equipment and to optimize the operation process.
The construction of the plant will be completed in October 2005 and will employ
2 persons, disassembling 2,300 vehicles per year.
ELV Disassembly Plant
Location Hwaseong City, Gyeonggi Province, Korea
Area 10,900m2
Capacity 20 cars per day (12 persons required)
Budget 2.47 billion Korean Won
Expected Date of completion Oct. 2005
Air Conditioner Refrigerant
Freon and R134a are known as an ozone depleting substance and a greenhouse gas
respectively. Hyundai Motor is developing refrigerant collection equipment as well
as refrigerant destruction technology. In case of the destruction technology,
Hyundai Motor and the refrigerant suppliers are researching jointly. In addition, we
are developing CO2 refrigerant for automobiles.
Automotive Shredder Residue (ASR)
Since 2000, Hyundai Motor and Yonsei University have been jointly developing
recycling technology for ASR. This project is expected to develop material sorting
and heat recovery technology. We are planning to establish and operate ASR
treatment facilities with corresponding affiliates. It would enable us to reduce the
total amount of ASR land-filled.
Life Cycle Assessment (LCA)
Since 1998, Hyundai Motor has been performing LCA for parts. The assessment
results are considered in the product development process. Hyundai Motor will
extend LCA to total car in the future. The LCA will be a crucial element in our DfE
effort: the results will be considered in product development process.
Hyundai Motor Company 2002/2003 Sustainability Report
45
ELV Disassembly Plant Process Flow
44
5. Joint Research Activities
Hyundai Motor, with leading academic institutes and scholars, is engaged in a
number of joint research activities. In 2002, Hyundai Motor had adopted Feasibility
Study System, which invites scholars for research proposal submittal, seed money
(initial allowance) funding and initial result evaluation. Research proposals with high
evaluation scores will develop into research projects.
Also, Hyundai Motor works with talented students and aspiring engineers. Since
1995, the annual vehicle design contest hosted by Hyundai Motor has been an
opportunity to engage young minds in the field of automobile design. The R&D
scholarship fund invites a select group of outstanding students to join the Hyundai
Motor research team as an intern while continuing their studies. This gives the
students an opportunity to gain valuable on-site experience and apply their
theoretical and creative skills in a real-world setting.
Hyundai Motor supports the continuing education of promising employees by
subsidizing their tuition. They go back to school to learn new trends and gain strong
theoretical understanding of their fields. We value an educated workforce and the
mid- to long-term benefits, while individuals enhance their professional and personal
skills.
1. Annual Vehicle Design Contest
2. Joint Research Agreement Ceremony with
Shinsung College
1.
2.
Birds-eye View Mapof ELV Disassembly Plant
2000
52
2.3
2001
72
4.1
2002
65
5.2
Number of Joint Research
Total (billion Korean won)
Joint Research Activities
Supplier Environmental Management Training
(352 Suppliers).
47
PurchasingOne passenger vehicle consists of over 20,000 components. Consequently, the
environmental and social performance of suppliers directly influences Hyundai
Motor’s environmental and social performance. We are willing to engage suppliers
in dialogues on sustainability. Educating our suppliers and helping them stay on
track are a vital part of our sustainable business.
1. Green Purchasing System
In accordance to environmental management strategy, Hyundai Motor has been
encouraging its domestic suppliers to establish environmental management system.
As part of Hyundai Motor’s green purchasing system, we have provided training on
environmental management system for over 450 domestic suppliers. Hyundai
Motor is planning to improve the Five Star system (a supplier quality evaluation
system) to include elements on environmental performance from 2004.
2. Supplier Environmental Management Training
In accordance to ECO GT5 2010, the purchasing department trained managers
from major suppliers in June 2003. The training session focused on Hyundai Motor’s
environmental management strategy and green purchasing systems.
By keeping the suppliers informed of our environmental management strategy and
policy, Hyundai Motor expects the suppliers to improve their environmental man-
agement initiatives to emulate ours.
3. Support Center for Supplier Employees
Improving human rights and workplace environment is an important part of our
sustainability initiatives. Since April 2003, the purchasing department operates a
Supplier Employee Support Center to offer assistance in legal affairs, wage, welfare
and unfair treatment.
Q: What is the role and vision of the Hyundai Eco-
technology Research Institute?
The Institute will play a key role in achieving environmental
target for “ECO GT5 2010” as announced in Hyundai-Kia
environment management declaration by Chairman
Chung Mong-Koo. We will establish core competence and
system to develop environmentally-friendly products
which will enable us to respond to various environmental
regulations, which are another trade barriers. We are
developing product oriented environment technologies
such as environmentally-friendly design, recycling, next
generation vehicle, emission reduction, fuel efficiency
improvement as well as production oriented
environmental technologies, air and water treatment and
reduction of energy consumption and waste generation.
Some internal organization and systems will be
reorganized for all the technologies developed by the
institute to be fully applied to new car development in
Namyang R&D center. And we are planning to apply Life
Cycle Assessment (LCA) at the beginning stage of
development to assess and improve environmental
impact, and finally establish total LCA system ranging from
design to disposal.
Q: What do you see for the future, especially regarding
environmentally-friendly vehicle and next generation
vehicle?
Environmental damage done and the growing scarcity of
nonrenewable resources are creating a demand for
environmentally friendly next generation vehicles like fuel
cell electric vehicles, hybrid electric vehicles, electric
vehicles and so on. And automakers are accelerating their
development of these vehicles to position themselves
ahead in the market with extraordinary potential within
5 ~ 10 years. Both hybrid vehicle and fuel cell vehicle will be
in strong demand by 2030, coexisting rather than
competing on the environmentally friendly vehicle market.
Further into the future, fuel cell vehicle will eventually take
over the major market share, as fossil fuel resources
deplete and costlier to maintain. Almost all vehicles
manufactured after 2050 will be powered by fuel cells.
Q: What is the direction of the institute for social
responsibility?
We consider the development of environmental
technology itself to be core contribution to society. We
want to contribute to society by increasing the production
of environmentally-friendly vehicles. Hyundai hybrid
vehicle will be showcased at the 2004 Olympics in Athens,
highlighting the theme of environmental protection. On
April 2003, we sponsored vehicles to support the torch
carriage, marathon and environment related events. Five
Hyundai Santa Fe electric vehicles are on the road in Jeju
Island for pilot service from November 2003 to October
2005.
Q: Efficient and clear internal/external communication is
very important for a successful response to environmental
and social problems. How does the institute’s message
get across?
It is improper to apply past procedure and internal
standard to newly arising issues regarding the
environment. So we are having explanation meetings
focusing on working level for each department to
understand the issues quickly. Also we set up
environmental product committee and some sub
committees for inter-departmental communication and
coordination. For external communication, we are joining
the International Material Data System (IMDS) to share
information with our partners on component recycling,
material weight and hazardous material contents. We also
invite academics to join industry in regular forums resulting
in technological performances. We’re planning to engage
environmental organizations in the future and listen to
their views on the development of environmentally friendly
vehicles.
46
“We consider the development ofenvironmental technology itself to becore contribution to society. We wantto contribute to society by increasingthe production of environmentally-friendly vehicles.”
Joon-Chul Park, Ph.DSenior Vice PresidentHyundai Eco-technology Research Institute
INTERVIEW >>>
Hyundai Motor Company Green Purchase Strategy
48
Supply Chain Environmental Management (SCEM) Project
Since 2003, Hyundai Motor is participating in the SCEM project sponsored by
Korean National Cleaner Production Center (KNCPC), an affiliate of the Ministry of
Commerce, Industry and Energy (MOICE). The SCEM project’s goal is to establish
environmentally-friendly supply chain management system by supporting suppliers
in establishing their environmental management strategy encompassing the entire
value chain of their business. As part of the project, Hyundai Motor is supporting the
suppliers to adopt environmentally-friendly production technology and develop
their own DfE. We also plan to build a web-based network for sharing environmental
information among suppliers. The 1st year phase of SCEM project is currently ongoing
(July 2003 ~ June 2004), with the involvement of 10 selected suppliers, before it is
implemented to other suppliers around the country.
4. Purchasing Department Ethics Charter
The purchasing department has established a purchasing department ethics
charter to ensure a transparent purchasing system.
Purchasing Department Ethics Charter
1. Our goal is to realize a more prosperous life and to improve the quality of life by
developing and supporting safe and environmentally-friendly products.
2. Our duty is to pursue mutual development with domestic and foreign suppliers
by creating the highest value through fair and transparent purchasing.
3. Our target is to be ethical purchaser through proper and responsible conduct to
attain transparent management.
4. We endeavor to earn respect by creating a transparent and fair purchasing cul-
ture, respecting ourselves and maintaining our dignity.
5. VAATZ Purchasing System
The Value Advanced Automotive Trade Zone (VAATZ) is Hyundai Motor’s
proprietary system for procuring goods and services, directly linking suppliers
with Hyundai Motor. The purchasing and payment for parts is conducted
entirely online through the VAATZ system.
Hyundai Motor Company 2002/2003 Sustainability Report
SCEM Organization
VAATZ System
Satellite Photo : Ulsan PlantTotal site area-4,958,700m2
Total built area-2,314,060m2
Plant #1 : Accent, GetzPlant #2 : Centennial, Dynasty, Santa Fe, Atos primePlant #3 : Elantra, Coupe, MatrixPlant #4 : XG, H-1, H-1 Truck, H-100 TruckPlant #5 : Terracan, Matrx, Sonata Taxi
Energy Conservation (Electricity and Gas)
In 2002, we reduced the use of electricity by 40.89 GWh through lighting improve-
ments, equipment realignment, operation rationalization, waste heat recovery and
energy-efficient equipment purchasing at our three domestic production facilities.
We also reduced the use of natural gas by 2.7x106 Nm3.
It totals 2.5 percent reduction in electricity and 1.5 percent reduction in natural gas
consumption of that year.
Advanced Air Refreshment Plant (ARP) Wash Zone Type
In 2002, we replaced the ARP wash zone type from media type to nozzle type at
Ulsan plant. With the nozzle type, the water pump operation period has significantly
reduced, resulting in energy and water consumption reduction. Through the
improvement in efficiency of humidification, we can save a total of 3,178,000 Nm3 of
natural gas use each year with the new system.
Microwave dry oven
The foundry process in Jeonju plant reduced the use of natural gas by 308,000
Nm3 per year by replacing its coated mold core dry oven from gas burning to
microwave type. The gas dry oven is known to consume a large quantity of natural
gas and is prone to quality problems.
Recovering Boiler Waste Heat
In July 2002, the Jeonju plant installed the boiler automatic drain system to recover
the waste heat. The new system is installed with plate type heat exchanger to
recover the heat from the drains and transfer it to the incoming water at room
temperature. It allowed approximately 176,000 Nm3 of natural gas use reduction
per year.
ProductionTo use energy and natural resources efficiently and minimize the impact on the
environment is a part of sustainability that has to be considered important to all
manufacturing industries, including automakers. To fulfill our social responsibility
as a corporate citizen, we have been working to increase the efficiency of energy
and natural resources uses, and develop technologies to reduce waste and recycle.
In addition, we have been trying to reduce our impact on environment by
developing clean production and using environmentally-friendly materials. In
2002, we established a sustainable clean production system by consolidating
corporate environmental management system.
1. Resources and Energy
Use of Resources and Energy
A wide spectrum of materials is used in the making of an automobile: metal plate, paint,
aluminum, organic solvents and toxic substances such as NaOH and HCI and so forth.
The energy uses include electricity, petroleum, coke and natural gas.
The improvement on energy and natural resource consumption is the key element of
clean production and protection of the natural environment. Hyundai Motor is monitor-
ing on its manufacturing process to improve the use of energy and natural resources.
Please refer to the appendix for the basic environmental data of our facilities in 2002.
Resources and Energy Conservation
Waste Reduction and Recycling
Hyundai Motor is engaged in resource and energy conservation. Our conservation
effort concentrates in two areas: source control and recycling. We suppress the
generation of waste at the source, such as the improvement on inner panel surface
coating. We recycle door hole scraps, sludge from wastewater treatment facilities
and package wastes in which we also recover costs. We maintain waste inventory to
monitor the progress on reduction of waste. Ultimately, Hyundai Motor targets to
reduce the amount of waste generation to 0.38 kg per vehicle per annul.
Hyundai Motor Company 2002/2003 Sustainability Report
5150
Recovery of Boiler Waste Heat
1. Media Type ARP (Before)
2. Nozzle Type ARP (After)
Energy, Material and Water Use (2002)
1. Ulsan Plant
2. Asan Plant
3. Jeonju Plant
Energy Conservation (Gas)
Energy Conservation (Electricity)
5352
Wet Scrubber with Electro-static Precipitator
Hyundai Motor added electro-static precipitator (ESP) to existing wet scrubber
stacks to eliminate both ceruse mist and discernable odor from dry oven facilities.
It improved the efficiency of the emission control and saved cost for replacing the
control facility entirely.
Refrigerant Feeder
Although it is not an ozone-depleting chemical (ODC), the hydro fluorocarbon
(HFC) refrigerant is known as one of the greenhouse gases. Hyundai Motor’s
commercial buses use HFC as air conditioner refrigerant. The buses at the end of
the assembly line are double inspected for any leakage of HFC. The line is also
equipped with a refrigerant feeder that is capable for both injecting and extracting
HFC. It can remove HFC that are overfed, eliminating leakage from over-pressured
refrigerant tanks.
Environmentally-Friendly Packaging
Automobile manufacturing can be characterized by large numbers of parts
delivered in from suppliers. Correspondingly, a large quantity of packing is used to
protect the parts: sometimes over packaged or packaged with non-recyclable
materials resulting in package waste. To reduce packaging waste, Hyundai Motor
engaged in parts packaging improvement initiatives since 1998.
During the 1998 to 2001 period, Asan plant had selected 112 different parts assigned
for packaging reuse/recycling and optimization. Ulsan plant designated 7 parts
packaging from disposable to reusable, achieving a significant reduction of package
waste and cost saving.
Hyundai Motor Company 2002/2003 Sustainability Report
Refrigerant Feeder
Chemicals Management Service
1. Wet Scrubber without ESP (Before)
2. Wet Scrubber with ESP (After)1.
2.
Chemical Management Service
Hyundai Motor sponsors and participates in the Chemical Management Service
(CMS) project, co-sponsored by the Ministry of Industry, Commerce and Energy
(MOICE). It’s purpose is to establish corporate-wide chemical management system
(from purchasing to disposal) including environment, health and safety issues.
Currently, Chemical Strategy Partnership (CSP), a US-based non-profit organization,
and scholars from Keimyung University are participating in this project. With Ulsan
plant as the subject facility, this project is to identify all chemical uses and optimize
chemical handling practices. It is intended to reduce potential environmental impact
and save the cost for material purchasing in turn. Hyundai Motor is planning to
extend CMS to all our plants in the future.
2. Reduction of Pollutant and Waste
Pollutant and Waste
Hyundai Motor is pursuing cleaner production by improving discharge control
measures at each source and setting internal discharge standards exceeding
regulatory requirements.
Reduction of Pollutant and Waste Discharge
Hydraulic Oil Filters
Hydraulic oil in press machines requires periodic replacement, approximately once
in 2~3 years. It generates a large quantity of oil waste in each replacement. By
installing oil filters in press machines, Hyundai Motor extended the life span of
hydraulic oil, reducing 1,620 kg oil waste per year and the overall defect rate of the
press machines.
Environmentally-friendly Packaging
4. Environmental Management in Production
Environmental Training
Our goal to conserve natural resources and minimize our environmental footprint
requires high environmental awareness and active participation from our employees.
Hence, Hyundai Motor has continuously been providing environmental training to its
employees on how to create a safer, more environmentally-friendly workplace. The
training participants bring their ground-zero experience in developing practical and
innovative solutions to environmental challenges.
In 2002, we implemented two new employee-training programs: environmental
management and environmental safety training. We also hosted an environmental
forum that year to put the spotlight on environmental trends and new technologies.
Electro-deposition De-ionized Wash Water Recycling
Through the use of a De-ionized (DI) recycling system, Hyundai Motor recycles
waste DI wash water used during electro-deposition process. It was once considered
non-recyclable due to the presence of fine colloids. We reduced the quantity of DI
wastewater by as much as 70 percent and improved over 50 percent in the BOD
level of the waste DI wastewater.
Water-soluble Paint
Hyundai Motor has a corporate-wide plan to reduce the VOCs emission from the use
of thinners for oil base paints while increasing the use of water-soluble paints. This plan
is expected to reduce VOC emissions from the present 67 g/m2 to 35 g/m2. Asan
plant, as the pioneer plant, will install the water-soluble paint facility by 2003.
Lead-Free Electro-Deposition Painting System
Currently, Hyundai Motor uses lead containing electro-deposition paints. We are
planning to develop lead-free electro-deposition paints that meet the same quality
standards, but are less harmful to the environment.
Non-Face Welding Hemming Sealer
Conventionally, the inner and the outer plates are welded together followed by
sand grinding, which generates metal dust. Hyundai Motor developed non-face
welding process using ceramic ball and sealer. It eliminates the sanding process,
solving the problem of metal dust. It also improves the quality of body plate painting
and reduces environmental impact.
3. Logistics Optimization
Logistics system optimization has both economic and environmental benefits. The
benefits can include cost saving on the economic aspect and natural resource
conservation on the environmental aspect. The environmental benefits allow
companies to fulfill its social responsibilities as an accountable corporate citizen.
Hyundai Motor developed Pyongtaek and Kunsan harbor as part of its logistics
optimization effort. We have established a collective logistics system, which utilizes
selected common delivery vehicles as opposed to each supplier operating delivery
vehicles independently. In 1997, we have adopted the collective logistics system for
32 suppliers in the Daegu area. Asan plant and Jeonju plant have adopted this
system since 1998 and 1999 respectively.
Hyundai Motor Company 2002/2003 Sustainability Report
5554
Internal EMS Auditing (2002)Logistics Optimization
Independent Logistic System Collective Logistic System
Internal Environmental Audit
In 2002, Hyundai Motor performed environmental management systems audits at
our assembly plants over a period of 5 months, auditing a total of 49 departments.
The internal audit revealed 159 nonconforming issues of which 157 items were
corrected. Also, there were 58 recommendations, which include improvements on
environmental awareness and employee roles and responsibilities. We plan to focus
the 2003 internal environmental audit on regulatory compliance, performance
against last year’s objective & targets, corrective action and overall conformity of
actual practices against their Environmental Management System (EMS).
Electro-deposition De-ionized Wash Water Recycling
Non Face Welding Hemming Sealer
Lead Content in ED Paint(Line average in Ulsan plant)
Face Welding
Non Face Welding
Participants
All Employees
Environment and
Safety Team
Environment Managers
Chemical Managers
Nominee for Promotion
in Environment and
Safety Department
Internal Environmental
Auditors
Environmental
Coordinators
Environment Manager
in Each Plant
Contents
Environment Awareness
Hazardous Substances Management
Environment Management
Toxic Material, Treatment Method,
Response in Emergency
Environment Management, Fire
Emergency
ISO 14001 Requirement, Regulation,
Auditing
ISO 14001 Requirement, Regulation,
Environment Management
Trends and New Technology, Best
Practice on Environment
Time
2002
May 2002
Apr. ~ May 2002
Biennial
Routine Training
Jul. ~ Aug. 2002
Nov. 2002
Nov. 2002
Environmental Training at Domestic Plant (2002)
Head Count
All Employees
19
3
152
12
3
83
2
56
Hyundai Motor Company 2002/2003 Sustainability Report
Certificates
Jeonju plant is both OHSAS 18001 and KOSHA 2000 certified. However, we
endeavor to go beyond the minimum requirements laid out by these standards.
Complying with Environmental Regulations
Hyundai Motor’s self-imposed emission standards are 30 percent lower than the
legally mandated standard in Korea.
5. Other Activities
Fire Drills
We conduct annual fire drills at all domestic assembly plants to better prepare our
employees and facilities in the event of an emergency. We worked together with
local fire departments to improve the fire safety of the Ulsan plant in October 2002
and Asan plant in April of the same year.
Health and Safety
Hyundai Motor provides industrial accident prevention sessions mandatory for our
employees and on-site subcontractors. Also, we offer new training sessions on
ergonomics and operate a gymnasium for the improvement of employee health.
6. Contribution to Local Community
Roadwork for Donation
Hyundai Motor invested a total of 34.1 billion Korean won to construct a public road
near Ulsan plant, which we donated to the city. The construction began in October
1994 and was completed in a 28 month construction period. It extends for 4.92 km
at the width of 30 m solving the chronic traffic problem in and out of Ulsan plant.
In June 2001, the city government officially re-named it Asan Road in commemora-
tion of Hyundai Group founder Ju-Young Chung.
Hyundai Motor’s International Manufacturing Plant: Alabama
Hyundai Motor is investing one billion US dollars to build our third international
manufacturing plant, in Montgomery Alabama, US. The facility will roll out the first
American-made Hyundai car in 2005 and will create new employment for over
2,000 local residents. Also, a total of 11 partners, including Hyundai MOBIS and
HYSCO, will invest an additional 430 million US dollars in the project and will employ
another 5,000 people at separate facilities. The Alabama plant will not only boost
local businesses, but also have a profound impact on the community through the
creation of jobs and opportunities.1. KOSHA 2000 and OHSAS18001
2. Employees Gymnasium
1. Asan Road
2. Birds-eye View Map of Hyundai Motor
Plant Alabama, US.
Q: What do you think about environmental problems,
workplace environment and occupational safety at your
plant?
Company is obligated to ensure the well being of its
employees by providing a healthy workplace
environment. At the same time, the employees must be
aware of the consequence of his/her own action with
regard to environment and safety.
They acknowledge that they have to comply with our
environment, health and safety guidelines for their own
benefit.
Q: Please provide examples of the best practices in
your plant with regard to environmental management.
We use the waste molding sand from foundry as the
additive material in copper refinery eliminating the use
of silica. It reduced a total of 100,000 tons of industrial
waste every year.
Q: What can you do to improve the environmental
management at your plant?
One person cannot change the world. However, it is
important to believe that collective efforts from
individuals, such as myself, can bring about change. We
need to remind ourselves that it is I who will protect the
environment and rejuvenate the polluted ecosystem. As
the Environmental and Safety officer, I intend to reduce
the generation of pollutants at sources and contribute
to the establishment of a more environmentally-friendly
production system.
57
“Employees must be aware of theconsequence of his/her own actionswith regard to environment and safety.”
Kyu-Bo Lim general managerEnvironment and Safety Team, Ulsan plant
INTERVIEW >>>
SubstancesPM (mg/Sm3)NOx (ppm)SOx (ppm)CO (ppm)HCI (ppm)
Regulation120350 (Cupola)500 (Core Manufacturing)600 (Incinerator)6.0 (Melting Furnace)
Internal Standard2470201201.2
SubstancesCOD (mg/l)BOD (mg/l)SS (mg/l)n-H (mg/l)
Regulation9080805
Internal Standard4020202
Regulatory Standard VS Internal Standard (Emission) <For Ulsan Plant (Special CountermeasureArea Under Korea Law)>
Regulatory Standard VS Internal Standard (Discharge) <For Ulsan Plant>
Marketing and Sales1. Customer Satisfaction Survey
Hyundai Motor has been conducting a customer satisfaction survey using Hyundai
Customer Satisfaction Index (HCSI). Since 2000, we have included a questionnaire
about environmentally-friendly diesel passenger vehicle, Hyundai Motor’s corporate
image and its social contribution. The results are reported to top management to
formulate corporate strategies. Hyundai Motor also conducts random surveys with
questions concerning issues on diesel passenger vehicle. It is to understand
customer preference and identify their needs with regard to diesel passenger vehicle.
2. Communication with Consumers on Sustainability
Public Events
In 2002, Hyundai Motor hosted a number of public events to communicate with
consumers on the environment, society and sustainable future. It includes flower
festivals, Boong Boong Yi painting contests and seed sharing events.
Communicating through Hyundai Motor World
Hyundai Motor announced its environmental activities and accomplishments
through Hyundai Motor World, a quarterly magazine published by Hyundai Motor.
In the 2003 spring issue, we announced our medium-to long-term environment
management strategy and the development in hydrogen fuel cell electric vehicles.
In 2003 summer issue, we presented articles on our declaration of ECO GT5 2010
and official sponsorship to the 2004 Athens Olympics. We have been publishing
this magazine in English only, however, we are planning to add Spanish and Arabic
editions to communicate with a wider range of interested parties.
Catalogs
Product catalogs include information on Hyundai Motor’s environmental initiatives
and activities. In addition, we restrict the uses of cellophane coated paper on our
catalogs to protect the environment as well as save cost in recycling.
Reusable Common Booths at Motor Shows
Since 1995, Hyundai Motor has used reusable common exhibition booth at conven-
tions in Europe and North America and adopted this system in the Asia Pacific
region from 2003. The reusable booth can be used for many years, saving
resources and reducing waste.
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Hyundai Motor Company 2002/2003 Sustainability Report
59
Low Emission Vehicle at Motor Shows
Hyundai Motor has continued to exhibit environmentally-friendly engines in a number
of international motor shows. At Frankfurt Motor Show in 2003, we exhibited the
model Getz, a high fuel-efficient and low emissions vehicle. Getz was well received
among the European auto market.
Customer Relations Management (CRM) System
Hyundai Motor has implemented a CRM system to systematically improve com-
munication with customers. The CRM system allows an interactive communication
throughout a vehicle’s entire life cycle. The CRM is carried out in 4 steps, which is
subcategorized into more detailed programs such as the welcome-pack, the tailor-
made magazine, the e-letter, the e-magazine, the supporting pack for re-purchasing
and Short Message Service (SMS) In 2003, this program allowed Hyundai Motor to
get in touch with over 3 million customers (54 percent of all Hyundai Motor’s
domestic customers pool) and answered 14,548 complaints.
3. Requirements for Dealers on Sustainability
Environmental Management Contract with Dealers
In April 2003, Hyundai Motor drafted a new version of its dealer contract including
environmental clauses. All domestic Hyundai Motor dealers are required to resign
with the revised version and it will also be applicable to European dealerships in
coming year.
Training for Hyundai Motor Dealers and Dealer Agencies
We conduct 13 training courses on environmental management for Hyundai Motor
dealers and 5 dealer agencies. To maximize the efficiency of the training, courses are
offered in different levels based on the number of training programs previously attended
and years of employment. The agendas of the training include social responsibility,
Hyundai Motor Environment Management Policy and details of our environmental
management strategy. In 2002, a total of 118,724 dealers completed one or more
training courses, with the average per dealer training hours of 100.1 hour per year.
Hyundai Motor intends to further improve the training system and continue our effort
on environmental and ethics management as a responsible corporate citizen.
Hyundai Customer Satisfaction Index (Environment)
1. Boong-Boong-Yi Painting Contest on
Environmental Themes.
2. First Prize Winner at Boong-Boong-Yi
Painting Contest 2003.
3. Ulsan Plant Flower Festival.
1. Chicago Motor Show 2003.
2. Geneva Motor Show 2003.
3. Busan Motor Show 2003.
First Place in National Customer Satisfaction Index (NCSI)
In 2003, Hyundai Motor placed first in the NCSI in the automotive category for
three consecutive years. The NCSI is developed by Korea Productivity Center
(KPC) and Michigan University who developed US customer satisfaction index. It
measures key areas of customer satisfaction: quality, service, customer expectation,
value and more.
After service market The aftermarket division at Hyundai Motor supports its environmental manage-
ment systems through environmentally-friendly service and efficient environmental
information management.
Hyundai Motor Company 2002/2003 Sustainability Report
61
4. Supporting Sports Events
We provide support to many sporting events. We believe that sports events are the
most effective tool to bring people together regardless of nationalities, race and/or
ideologies. Hyundai Motor, as an official partner of FIFA, sponsored 1999 FIFA
Women’s World Cup (US), EURO 2000 and 2002 FIFA World CupTM Korea Japan.
Moreover, we will sponsor EURO 2004, FIFA 2006 World Cup and FIFA Women’s
World Cup 2003 (US) in upcoming years.
Hyundai Motor, as a Grand National Sponsor, bestowed Santa Fe Electric Vehicle
(EV) and all-aluminum body Getz to the representatives of the Athens 2004
Organizing Committee for the Olympic Games (ATHOC) in June 2003. Santa Fe
EV will be the torchbearer and lead car at the marathon race in the 2004 Athens
Olympic Games. Hyundai Motor believes this opportunity can showcase our deter-
mination for environmental protection and sustainable development.
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Waste Management Procedure
Hyundai Motor as Sponsor to Major Sporting Events1. Donation of Santa Fe EV to ATHOC
2. Santa Fe EV in Athens
Free Vehicle Inspection Service in Celebration of
ECO GT5 2010 Declaration
1. Environmental Management
Free Emission Inspection
To celebrate the declaration of our ECO GT5 2010 and to raise environmental
awareness among our customers, some 2,000 employees at 23 Hyundai Motor service
centers performed a free emission inspection for 47,000 vehicles.
ISO 14001
All 23 domestic Hyundai Motor service centers were ISO 14001 certified in March
1998. Hyundai Motor introduced the standardized environmental management
manual to 1,200 subcontracted service centers to operate with the same environ-
mental management system as that of Hyundai Motor service centers. Hyundai
Motor is planning to implement environmental validation system and eventually
recommend ISO 14001 certification for all subcontracted service centers from 2004.
Environmental Management for the Aftermarket
3. Social Activities
Free Vehicle Inspection for the Physically Challenged
Hyundai Motor provides a free vehicle inspection for the physically challenged
and handicap taxi on April 20th every year. This program is part of Hyundai Motor’s
corporate social responsibility initiative. We plan to expand this service in the near
future.
Clean-Up Campaign
All Hyundai Motor regional service centers participated in an environmental
clean-up campaign in May 2002. A total of 50 regional clean-up projects were
conducted with 794 participants from Hyundai Motor and local communities.
Customer Safety
Hyundai Motor is sponsoring Weekend Vehicle Maintenance Course and Owner
Maintenance Course (basic engine tune-up and on-the-road inspection) to improve
customer safety.
First Prize in Korean Standard Service Quality Index (KS-SQI)
KS-SQI is a composite index that tracks customer satisfaction rates on the overall
quality of the Korean service industry. The survey has been conducted every year
by Korea Standards Association and Dong-A Daily since 2000. Hyundai Motor
after service division took the first prize in the passenger car service category.
Online Vehicle Inspection Data Network
For efficient management of after service records, Hyundai Motor is developing
Electronic Document Management System (EDMS). This online system will
improve the overall quality of after sales activities by enabling mechanics to
access vehicle’s inspection and maintenance history at any location connected to
the network. The system can also be used as a training tool by service mechanics
exchanging useful hints & tips. Furthermore, the communication and data
exchange will occur simultaneously: it is now possible to provide quality services
at a shorter period of time.
Hyundai Motor Company 2002/2003 Sustainability Report
636562 64
Water-soluble Paints
Since 2003, Hyundai Motor has implemented the use of water-soluble paints for
selected models to reduce the volatile organic compounds (VOC) emission. We are
planning to extend the use of water-soluble paints to all models by 2005.
Beautiful, Attractive and Safe service shops with opportunities to Innovate within
necessary Controls (BASIC) Movement
Hyundai Motor Service Centers
The BASIC movement, started in September 2001, is meant to transform service
centers into environmentally-friendly and comfortable spaces for customers to
achieve higher levels of customer satisfaction and employee confidence.
Subcontracted Service Centers
In order to extend the BASIC movement to subcontracted service centers, we
developed and distributed BASIC standard manuals in April 2003. Hyundai Motor is
empowering the steering committee to train and monitor the subcontracted
service centers and evaluate their performance.
2. Communicating with Employees
Proactive and voluntary participation is a collective result of mutual trust between
management & employees and employees & employees. It plays a key role in
achieving customer satisfaction and effective environmental management. Hence,
the after service division at Hyundai Motor hosted a series of recreational activities
such as ‘One Mind’ sport event and Beach Camps to promote employee esteem
and encouragement.
One Mind Cultural Event
In November 2002, 2,500 employees from after service division participated in this
sporting event for friendly competition and friendship building.
Beach Camp
Employees and their families from after service division were invited to join the
Beach Camp in July 2003.
1. One Mind Cultural Event
2. Beach Camp 2003
3. Free Vehicle Inspection for The Physically
Challenged
1. Clean-up Campaign
2. Korea Standard Service Quality Index :
First Prize
Hyundai Motor Company 2002/2003 Sustainability Report
67
Appendix (Continued)
66
Appendix/Environmental DataFollowing graphs represent the energy use and pollutants discharge status from the domestic
manufacturing plants (Ulsan, Asan, Jeonju), Namyang R&D Center and all Hyundai Motor After
Server centers for the last three years.
*Data from A/S is Included from 2002.
Hyundai Motor Company 2002/2003 Sustainability Report
69
Appendix (Continued)
68
Appendix (Continued)
*Data from R&D is Included from 2001.
KPMG provides sustainability services to businesses and organizations wishing to gain greater understanding and improvedmanagement and reporting of environmental, social and ethical performance. KPMG’s Global Sustainability ServicesTM hasover 350 professional staff working in 30 countries worldwide. We employ professionals with extensive experience in theservices we deliver, experience that is maintained through participation in international initiatives in sustainability and throughdeveloping strategies with clients. We work within KPMG multi-disciplinary teams with backgrounds in business risk,compliance, finance, tax, audit and certification. We develop working relationships on a client needs basis with NGOs,industry groups and technical service providers.
As part of our commitment to sustainable practices, KPMG Sustainability has worked with UK-based companyFuture Forests™ to balance (‘offset’) all CO2 emissions relating to our travel on this HMC project – making itCarbonNeutral®. A total of 20.9 tonnes of CO2 (emitted through flights and car travel), have been offset throughinvestment into a renewable technology project in Eritrea
“As transparency is one of the important features for a recognized player in theinternational business arena, the publication of this first sustainability reportrepresents a significant step for HMC in realising its ambition of becoming a topfive global player. Through our experience of working with HMC, in a partnershipto develop its sustainability strategy, we feel that HMC still has some significantchallenges with respect to sustainability management and reporting ahead:
Based on our visits to two plants and headquarters in Korea we haverecommended HMC to increase the reliability of the reported information byimproving the internal control procedures at all stages of the reporting process anddeveloping a company wide reporting manual to align the definitions and scope ofthe key sustainability performance indicators globally. This will positivelycontribute to the effective management of sustainability throughout HMC’soperations.
The main focus of this first sustainability report is on HMC’s domestic operations.We have recommended HMC to widen the scope of the next sustainability report,in particular the performance information, to its global operations. This can beaccomplished if HMC extends its good practice of registering environmental dataat the Korean sites to the other countries where it operates and expands the scopeof its reporting systems beyond environmental information. We regard HMC’sintention to obtain external assurance on its next global sustainability report as asignificant step in HMC’s journey on the road to sustainability.”
Arjan de Draaijer
KPMG Global Sustainability ServicesTM
“The publication of this first sustainability report,represents a significant step for HMC in realisingits ambition of becoming a top five global player”
Hyundai Motor Company 2002/2003 Sustainability Report
Arjan de Draaijer works as averifier with KPMGSustainability in theNetherlands. He specialises inusing assurance techniques toimprove the quality of acompany’s sustainability reportand the associated reportingorganization. He has worked forseveral multinational companies.
Address:
Environmental Management Strategy Planning Team,
Hyundai Motor Company, 231, Yangjae-Dong,
Seocho-Gu, Seoul, 137-938, Korea
Homepage: www.hyundai-motor.com
E-mail: [email protected]
Tel: +82-2-3464-2025
Fax: +82-2-3464-3451
Contacts
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