Hyundai Motor and Kia, in collaboration with the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Korea Automotive Parts Industry Promotion Foundation, and their parts suppliers, announced on the 17th (Monday) the signing of an ‘Agreement on the Supply Chain Carbon Reduction Cooperation Program’.
This agreement is part of Hyundai and Kia’s ongoing efforts to reduce carbon emissions throughout their supply chain. The aim is to promote low-carbon initiatives across the supply chain and foster climate change response and industrial competitiveness by leveraging joint growth with partners.
Hyundai and Kia support their partners in developing long-term carbon reduction plans and operate a ‘Carbon Reduction Cooperation Program’ for the introduction of equipment and capacity building. This program encourages voluntary reductions and cooperation expansion across the supply chain through a public-private cooperation model, making a seamless transition to low carbon for secondary suppliers.
Under the agreement, Hyundai and Kia, along with the Ministry of Trade, Industry, and Energy, will support the cost of replacing carbon reduction equipment for primary parts partners. Subsequently, a portion of the grant will be returned to secondary partners, in collaboration with the Ministry of SMEs and Startups, supporting secondary suppliers in purchasing carbon reduction equipment and operating carbon-neutral education programs. This aims to establish a public-private support mechanism.
Hyundai and Kia are targeting carbon neutrality by 2045, striving for zero net carbon emissions throughout every phase, from vehicle production to operation and disposal. They position the low-carbon transition of their supply chain as a core strategy and plan to host the ‘Automotive Parts Industry ESG and Carbon Neutrality Expo’ in April 2025 to share related technologies and equipment with partners.
A Hyundai and Kia representative stated, “This agreement is a tangible collaboration model for transitioning to a low-carbon supply chain, created jointly by companies, the government, and public institutions,” and emphasized, “It will lay the foundation for practicing sustainable management and transforming the industrial ecosystem.”