Global ESG agency EcoVadis upgrades Hyundai Rotem one rating from last year

Hyundai Rotem's headquarters in Uiwang [Hyundai Rotem]
Hyundai Rotem's headquarters in Uiwang [Hyundai Rotem]

Hyundai Rotem announced Friday that it received a silver medal rating from EcoVadis, a global ESG (environmental, social and governance) assessment agency — the first time the company has achieved that rating. The silver medal is awarded to companies ranking in the top 15 percent of all assessed firms.

EcoVadis evaluates ESG performance using three years of data from more than 130,000 companies across over 180 countries. Automakers worldwide use EcoVadis ratings as a key indicator when assessing the sustainability management capabilities of their suppliers.

Hyundai Rotem improved its scores across all four assessment categories — environment, labor and human rights, ethics, and supply chain — compared with last year, demonstrating progress in sustainable management. The company said its Transparent Management Committee, operating since 2020, contributed positively to the improvement in the ethics category.

The Transparent Management Committee is composed entirely of outside directors to ensure independence. It reviews major management issues including intragroup transactions, compliance with the fair trade voluntary compliance program (CP), and shareholder rights protection.

Hyundai Rotem also places emphasis on internal programs for all employees, including ethics and compliance education that achieved a 100 percent completion rate. In 2024, the company received a CP rating of AA — the "excellent" grade — from the Korea Fair Trade Mediation Agency under the Korea Fair Trade Commission, recognizing its internal control efforts.

In the supply chain category, the company's efforts to build a sustainable procurement environment with its partner firms were reflected positively. Hyundai Rotem conducts ESG assessments of its suppliers to encourage transparent transactions and responsible management throughout its supply chain. In 2024, it signed agreements with more than 1,300 partner companies to supply eco-friendly components.

In the labor and human rights category, the company's occupational health and safety management system and institutional framework received high marks. Hyundai Rotem reviews health and safety issues at the board level and has appointed regional heads of health and safety management under a C-suite chief safety officer.

The environment category also earned strong scores, driven by newly secured renewable energy use through solar power installations and reductions in waste and greenhouse gas emissions through environmental impact analyses of its products.

"It is meaningful that a credible global assessment agency has recognized our own efforts to build a sustainable ecosystem," a Hyundai Rotem official said. "We will continue to do our best to fulfill our responsibilities in a way that earns the trust of our customers, stakeholders and partner companies."

Hyundai Rotem had maintained a bronze medal rating from EcoVadis for four consecutive years from 2022 through last year before being upgraded this year. The company plans to address remaining gaps in individual categories and expand its responsible management posture by pursuing additional ESG-related external certifications and joining international initiatives.

President Lee Yong-bae had also underscored the commitment at the company's annual shareholders meeting at its Changwon headquarters in South Gyeongsang Province in March, saying the company would "further solidify the foundation for sustainable growth through safety, compliance and ESG management."


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