Climate Policy Engagement Overview: Hyundai Motor Group has mixed to negative engaged on a number of climate policy issues in South Korea, EU and the US in 2021-23. 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.

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".

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 mixed to negative stance towards regulations on the production of internal combustion engine (ICE) vehicles. The company 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.

More positively, 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. In January 2023, the Korea Economic Daily noted that Hyundai Motor's CEO, Chang Jae-Hoon, appeared to support an expansion of electric vehicles in South East Asia, with Jae-Hoon stating that “Electric cars will lead us to become the top car seller in the ASEAN market”.

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. Although Hyundai Motor has promoted green hydrogen, it appears not to have specified a clear position on the decarbonization of hydrogen production.

In a July 2022 Hankyung article, Hyundai Motor withdrew its plan to establish LNG power plants after reviewing various angles and impacts of the energy source.

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 the European Automobile Manufacturers Association (ACEA), Business Europe, and US-based Alliance for Automotive Innovation, where CEO of Hyundai Motor North America is vice chair. The company has not published an audit of its industry association memberships and climate lobbying.