'Sustainability Report 2026' released

Supply chain ESG moves to implementation phase

5 trillion won invested in R&D over three years

Cumulative patents exceed 10,000

Hyundai Mobis has published its "Sustainability Report 2026," detailing the company's efforts to strengthen supply chain competitiveness, pursue shared growth with partners, and advance ESG management. [Hyundai Mobis]
Hyundai Mobis has published its "Sustainability Report 2026," detailing the company's efforts to strengthen supply chain competitiveness, pursue shared growth with partners, and advance ESG management. [Hyundai Mobis]

Hyundai Mobis paid a total of 157 trillion won ($102 billion) to its suppliers over the past three years, the company said Monday, as it steps up ESG (environmental, social and governance) management to share the fruits of its future mobility business with partners and raise sustainability across its supply chain.

The company released its "Sustainability Report 2026" containing these details. Hyundai Mobis has published an annual sustainability report every year since 2010 to disclose its ESG activities and performance to key stakeholders.

This year's report covers shared-growth initiatives with suppliers, supply chain management, and carbon neutrality progress amid an uncertain business environment marked by slowing electric vehicle demand and tightening global regulation. Particularly notable is the report's framing of supplier support not merely as a purchasing relationship, but as a strategic effort to strengthen supply chain competitiveness.

Hyundai Mobis is upgrading its greenhouse gas emissions management system to cover second- and third-tier suppliers. The move comes as Scope 3 management — tracking indirect emissions across the value chain, including product production, logistics, and supplier operations — has emerged as a key challenge for the global automotive industry.

To that end, the company is expanding third-party verification and conducting ESG assessments and tailored consulting for its suppliers. It is also supporting the adoption of carbon-reduction equipment to help partners comply with environmental regulations from global automakers and parts manufacturers. Supply chain ESG management has moved beyond declarations and into active implementation.

On the environmental front, Hyundai Mobis is continuing its shift to renewable energy, focusing on electricity, which accounts for roughly 85 percent of its total energy consumption. Last year, the share of renewable energy in its energy mix rose to 29 percent.

The company has set a target to raise its renewable energy share to 65 percent by 2030 and reach 100 percent by 2040. For its major overseas facilities, it plans to transition entirely to renewable electricity by 2030.

Hyundai Mobis became the first company in South Korea's automotive industry to join RE100 — the initiative requiring 100 percent renewable energy use — in 2022. Last year, the Science Based Targets initiative (SBTi) approved its goal to cut greenhouse gas emissions at its facilities by 46 percent by 2030. The company is aligning its carbon reduction targets and implementation framework with global standards.

R&D investment, which underpins the company's sustainability strategy, is also growing. Hyundai Mobis has invested more than 5 trillion won in R&D on a cumulative basis since 2023. Annual R&D spending rose roughly 18 percent, from 1.59 trillion won in 2023 to 1.88 trillion won last year.

The pace of patent acquisition has also accelerated. Hyundai Mobis filed more than 7,300 new patents over the same period, pushing its cumulative patent holdings past 10,000 as of the end of last year. The investment is aimed at securing a competitive edge in core future-vehicle technologies, including electrification, autonomous driving and automotive software.

Sales have also continued to grow. Hyundai Mobis posted sales exceeding 61 trillion won last year. The company said it plans to link technology investment, supply chain management and ESG management to build a foundation for medium- to long-term growth.

The report also covers corporate governance and shareholder return policy. Hyundai Mobis has introduced a shareholder-nominated outside director system to strengthen shareholder rights and improve board independence and transparency. The company is also pursuing a medium- to long-term shareholder return policy to enhance shareholder value. Last year, its total shareholder return came in at 32.8 percent, exceeding its original target.

"We will continue to grow on the strength of our core technology competitiveness in future mobility, while at the same time pursuing carbon neutrality across our value chain and practicing shared-growth management to build a sustainable future," a Hyundai Mobis official said.


kwater@heraldcorp.com