Hyundai Rotem publishes 2026 sustainability report highlighting ESG progress

Hyundai Rotem announced Tuesday that it has published its 2026 Sustainability Report, reflecting the company's environmental, social and governance (ESG) strategy and goals.

The report was prepared around Hyundai Rotem's sustainability vision of "sustainable growth with stakeholders through creative innovation." It covers response measures and action plans for key issues affecting corporate management across environmental, social and governance areas.

This year's report places particular emphasis on achievements in strengthening ESG management, including reductions in pollutant emissions at company facilities, initiatives to foster mutual growth with suppliers, and the establishment of an independent board of directors.

On the environmental front, the report details specific strategies and results in pursuit of Hyundai Rotem's 2050 carbon neutrality goal. Last year, the company installed 640-kilowatt solar power generation equipment across five buildings at its Changwon factory — a key domestic production hub — and plans to generate about 1,000 megawatt-hours of renewable energy annually starting this year.

The company also stepped up resource recycling efforts, raising its waste recycling rate to 83 percent last year — up 4 percentage points from the previous year — and reduced water pollutants by upgrading aging wastewater treatment facilities at its worksites.

The social section outlines a mutual-growth strategy with suppliers to secure a sustainable supply chain. Hyundai Rotem expanded its supplier financial support fund — known as a mutual-growth fund — for three consecutive years, from 13.5 billion won ($8.76 million) in 2023 to 22.2 billion won in 2024 and 35 billion won last year. The company also provided 719 cases of technology support to suppliers last year, including joint research and development, helping them strengthen their technological capabilities and reduce development costs.

The report also includes safety and health management goals aimed at building safer workplaces. Last year, Hyundai Rotem overhauled its safety and health organization and began holding monthly safety and health management meetings chaired by the chief executive to reinforce accountability.

The governance section covers the establishment of an independent board. Last year, Hyundai Rotem set up a board composed entirely of independent directors to strengthen board independence, protect shareholder rights and improve governance transparency. The independent board may review in advance agenda items scheduled for board consideration that could have a significant impact on shareholder value.

The report also documents information security initiatives, including regular security training for employees handling core technologies to prevent leaks, and the operation of an internationally standardized information security management system.

In a foreword to the report, Hyundai Rotem President and CEO Lee Yong-bae said the company "solidified its foundation as a global leader by achieving remarkable results across each business division, even amid a complex management environment marked by the reshaping of global supply chains and overlapping geopolitical risks." He added that the company would "grow together with all stakeholders based on our sustainability vision."

Meanwhile, Hyundai Rotem recently received a Silver rating from EcoVadis, a global ESG rating agency — the first time the company has earned that designation. The Silver rating is awarded to companies ranking in the top 15 percent overall.

EcoVadis assesses ESG ratings for more than 130,000 companies across over 180 countries, using data from the most recent three years.