Hyundai Motor Group

Hyundai has a target to reduce its scope 1 and 2 emissions by 75% by 2040 compared to 2019, which is not ambitious enough to align with its 1.5°C pathway. The company has not set a scope 3 target. These targets are not approved science-based targets. In its 2021 CDP response, Hyundai has stated that it anticipates setting a science-based target within the next 2 years. However, Hyundai also stated this in its 2019 CDP questionnaire. The company should set more ambitious targets through the Science-Based Targets initiative.

Low-carbon vehicles accounted for zero of Hyundai’s total vehicle sales in 2015, with this increasing slowly to 1.6% in 2019, with a more rapid increase to 2.6% in 2020. However, this was not enough to meet its 1.5°C pathway in 2020. Hyundai aims to sell 560,000 electric vehicles per annum by 2030 which equates to approximately 25% of sales volume. In contrast, Hyundai’s 1.5°C pathway expects the company to have 64.5% by 2030.

Hyundai increased its scope 1 and 2 emissions intensity from 0.534 tonnes of CO2 per vehicle produced (tCO2/vehicle) in 2015 to 0.678 tCO2/vehicle in 2020. This is in contrast to the company’s 1.5°C pathway that requires substantial decreases in its emissions intensity. The company is expected to deliver a 21% decrease in scope 1 and 2 emissions intensity between 2020 and 2025. Hyundai’s targets are focused on driving down scope 1 and 2 emissions. The scope 1 and 2 emissions intensity increase highlights the improvement needed in the company to transition to a low-carbon economy.

Between 2015 and 2017, Hyundai improved the fuel efficiency of its internal combustion engine vehicles (litres of gasoline-equivalent per 100 kilometres) at the rate required by its 1.5°C pathway. However, the progress made over this period stagnated in 2018 and since there has been little improvement. Hyundai will need to decrease emissions from internal combustion engine vehicles by 2% per year to continue to align with its 1.5°C pathway for these vehicles.

Hyundai has set a target to reduce absolute scope 1 and 2 emissions by 75% by 2040 compared to 2019, with an interim target to reduce scope 1 and 2 emissions by 45% by 2030. Hyundai has not set a scope 3 target.

Hyundai has set low-carbon vehicle sales targets of 25% by 2030. It aims for full electrification in the US, Europe, and China by 2040. Hyundai dedicated KRW 23.5 trillion to future technologies such as electrification and hydrogen fuel cells. It uses internal carbon pricing to inform its decisions.

In 2020, 2.6% of Hyundai’s sales were low-carbon vehicles. The company did not disclose what proportion of its research and development expenditure went to low-carbon technologies in the 2020-2021 financial year.

Hyundai’s scope 3 emissions intensity decreased from 90.6 grammes CO2 per passenger kilometre (gCO2/p.km) in 2015 to 80.8 gCO2/p.km in 2020. Fuel efficiency improved from 2015 to 2020 with the fuel economy of internal combustion engines (ICE) decreasing by 8%.

Hyundai’s targets for a transition to a low-carbon economy are not ambitious enough. Although sales of low-carbon vehicles have increased this is not sufficient to align with its 1.5°C pathway. While investing in low-carbon vehicles, Hyundai is still focused on conventional ICE and hybrid vehicles.