Hyundai Motor

InfluenceMap Score
D
Performance Band
49%
Organisation Score
47%
Relationship Score
Sector:
Automobiles
Head​quarters:
Seoul, South Korea
Brands and Associated Companies:
Hyundai Motor, Kia
Official Web Site:

Climate Policy Engagement Overview: Hyundai Motor Group has engaged on a number of climate policy issues in South Korea, EU and the US in 2020-22. Hyundai Motor appears to acknowledge the necessity of GHG emissions reductions in its communications, but has negative engagement with numerous key regulations to reduce emissions in the road transport sector.

Top-line Messaging on Climate Policy: Hyundai Motor acknowledges the science of climate change and in its 2021 Sustainability Report recognized the need for emissions reductions to limit global warming well below 2 degrees Celsius. In this report, Hyundai Motor also stated that it supports the goals of the Paris Agreement. In 2020 at the Korean New Deal National Reporting Conference, Hyundai stated top level support for the South Korean government's Green New Deal, but their positioning on the specific policies remains unclear.

Engagement with Climate-Related Regulations: Hyundai Motor’s engagement with climate policy has mostly focused on the setting of GHG emissions and fuel economy standards for vehicles, with mixed positions on different regulations. In a September 2021 consultation response, Hyundai Motor appeared to support mid-range EPA proposed GHG standards for light duty vehicles in the US, as well as advocating for numerous flexibilities to weaken the policy’s stringency including EV multipliers and off-cycle credits. In 2019, Hyundai Motor signed a joint letter from members of the automotive industry to US President Donald Trump, which advocated for weakened US CAFE standards and further weakening of the initiative through proposing flexibilities and regulatory adjustments. In 2019 Hyundai also joined a consortium of automakers taking legal action to prevent the US State of California from setting its own stricter CAFE and GHG standards and zero emissions vehicle mandates. However, in February 2021 it withdrew its support for the legal action. Furthermore, in a November 2021 New Zealand consultation response, Hyundai Motor strongly opposed higher CO2 targets for light-duty vehicles included in New Zealand's Clean Car Bill, arguing that proposed targets are unachievable and emphasizing affordability and supply constraints faced by both consumers and manufacturers respectively.

In a February 2022 Twitter post, Hyundai Motor Europe advocated for policymakers to delay setting a zero-emissions EU 2035 CO2 reduction target for cars and vans until 2028, stating "it is simply too early today to fix a 100% #CO2 reduction target at a time when there are still way too many open questions". In its 2020 CDP response, Hyundai Motor also stated partial support for the Korean Emissions Trading Scheme, and disclosed that it participates as a legislative advisor to the South Korean government for the scheme.

Positioning on Energy Transition: Hyundai Motor has in recent years expressed broad support for increased investment in the electrification of transport, however evidence suggests that it takes a negative stance towards regulations on the production of internal combustion engine (ICE) vehicles. At a South Korean policy forum in June 2020, a Hyundai Motor representative did not support the regulation of ICE vehicles by the South Korean government, suggesting that this would make the decarbonization of transport unaffordable. The company also appeared to strongly oppose an EV mandate included in New Zealand's proposed Clean Car Bill in a November 2021 New Zealand consultation response, thus supporting a long-term role for ICE vehicles. However, in July 2021, Hyundai Motor used its Twitter channel to express support for ambitious reform of the Alternative Fuels Infrastructure Directive as part of the EU ‘ Fit for 55’ package, strongly advocating for binding national targets on installing recharging and hydrogen refueling infrastructure.

In a May 2022 US consultation response, Hyundai appeared to support California's proposed Advanced Clean Cars II regulation, which would require an increasing percentage of new light-duty EV sales each year until a 100% ZEV mandate in 2035, while advocating for minor flexibilities such as eliminating the pooling shortfall requirement. In August 2021, Hyundai released a statement in support of the Biden administration's goal for the US automotive industry to achieve 40 to 50 percent zero emission vehicle (ZEV) sales by 2030. In a September 2021 consultation response, the company appeared to support measures promoting the electrification of transportation in the US, including EV purchase incentives and the expansion of EV charging infrastructure. However, in a September 2021 CNBC news report, Hyundai appeared to oppose a proposed higher tax credit for union-made EVs in the US Build Back Better Act, though seemed to support the EV credits in general.

Hyundai Motor has expressed support for the increased role of hydrogen for a ‘hydrogen-powered society’ as a solution to the energy transition, especially through its active role in the Hydrogen Council. In 2020, Hyundai Motor signed a memorandum of understanding with the US Energy Department, with the purpose of accelerating ‘the creation of a global hydrogen-based economy’. Although Hyundai Motor has promoted green hydrogen, it appears not to have specified a clear position on the decarbonization of hydrogen production.

Industry Association Governance: Hyundai Motor disclosed membership of a limited number of trade associations through its 2021 Sustainability Report, but failed to list memberships of some key automotive trade associations, including US-based Alliance for Automotive Innovation, European Automobile Manufacturers Association (ACEA) and Business Europe. The company has not published an audit of its industry association memberships and climate lobbying. It declined to disclose information about any trade association memberships in its 2020 CDP disclosure.

QUERIES
DATA SOURCES
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011000NS
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
63%
 
63%
 
55%
 
55%
 
35%
 
35%
 
48%
 
48%
 
29%
 
29%
 
42%
 
42%
 
54%
 
54%
 
36%
 
36%
 
50%
 
50%
 
76%
 
76%
 
66%
 
66%
 
54%
 
54%
 
46%
 
46%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.