Hyundai Steel

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Hyundai Steel has committed to achieving a 12% reduction in its scope 1 and 2 emissions by 2030 compared to 2018. Moreover, the company aims to be net zero by 2050 across its operations. However, its net-zero target could not be assessed as the company plans to use an unknown percentage of offsets. In addition, Hyundai Steel’s scope 1 and 2 emissions intensity increased from 2019 to 2022. This diverges from the company’s 1.5°C pathway, which requires it to make substantial decreases in its emissions intensity.

Hyundai Steel has a comprehensive low-carbon transition plan, including strategies for the decarbonisation of its products and processes. However, the plan does not include targets for the company’s scope 3 emissions. To ensure alignment with a 1.5°C pathway, the company should include targets that cover the majority of its emissions. Additionally, though the company has implemented board-level oversight of climate change, no board members were found to have significant expertise in the low-carbon transition. There is evidence that Hyundai Steel is developing actions to decarbonise activities within its existing business models, such as increasing the integration of hydrogen technologies for steelmaking through its Hy-Cube technology.

Hyundai Steel invested USD 19 million in R&D in 2022. However, the company reports that it invested only 0.15% of its R&D expenditure in low-carbon technologies. R&D expenditure on low-carbon technologies is essential for a company’s success in the low-carbon economy and Hyundai Steel needs to significantly increase its low-carbon R&D to avail of this opportunity. Nevertheless, the company plans a Capital Expenditure (CAPEX) of USD 100 million in repurposing its existing Electric Arc Furnace to pre-melt scrap and Direct Reduced Iron (DRI) and reduce 20% of emissions from its cold rolled products.

Hyundai Steel has implemented a supplier engagement strategy that includes emissions reduction requirements, although suppliers are not required to quantify or publicly report their emissions reductions. Creating quantified targets for suppliers will help the company provide clear direction for its entire supply chain. The company provides limited evidence of a client engagement strategy to promote the use of low-carbon alternatives or influence its clients to reduce their emissions. In addition, no evidence was found of a company policy to manage engagement with trade associations on climate change issues. The company can increase its credibility by developing and publicly publishing a monitoring and review process to ensure its policy positions are aligned with the Paris Agreement.

Hyundai Steel has committed to reducing its scope 1 and 2 emissions by 12% by 2030 compared to 2018. Moreover, the company aims to achieve net-zero emissions across its operations by 2050. However, the company plans to use offsets to achieve this target.

Although the company discloses a detailed low-carbon transition plan, it has not set out a strategy for carbon reduction in its supply chain. Moreover, the company’s current business model relies on carbon-intensive fuels.

Although Hyundai Steel reports it is committed to the low-carbon transition, the company’s scope 1 and 2 emissions intensity has increased in the last five years.

Hyundai Steel has introduced its own low-carbon brand, “HyECOsteel”, to enhance the competitiveness of its low-carbon products. However, the company is still dependent on carbon-intensive processes for its operations. The company has only spent an average of 0.15% of its R&D investment in low-carbon technologies in the last three years.

Hyundai Steel publicly discloses a comprehensive low-carbon transition plan. However, it does not include strategies to engage with its suppliers and clients on quantified emissions reduction requirements. Moreover, the company does not have an action plan detailing its response when associations of which it is a member oppose climate policies.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. _x000D_
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning._x000D_

The company discloses the actions it takes to create jobs, such as supporting tailored training programmes and undertaking targeted investments. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.  _x000D_
No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. _x000D_
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as the lack of grievance resolution channels, and it takes actions to mitigate these risks. The company can strengthen its disclosure in relation to engagement with affected stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. The company discloses the gender representation of its workforce by employee category and has a time-bound target to increase the representation of women among its employees. It can, however, further strengthen its disclosure on key decent work issues, such as collective bargaining and working hours.

The company has some key ethical business policies and commitments in place. These include a policy prohibiting bribery and corruption and a commitment to protect personal data. It also discloses its global tax strategy. However, it can strengthen its disclosure on these topics as well as on its lobbying and political engagement practices.