Hyundai Rotem headquarters in Uiwang, Gyeonggi Province / Courtesy of Hyundai Rotem
Hyundai Rotem, the rail, defense and industrial plant affiliate of the Hyundai Motor Group, has received a Silver Medal from global ESG rating agency EcoVadis, the company announced Thursday.
It is the first time the company has reached that tier, marking a one-grade improvement from the Bronze Medal it held for four consecutive years from 2022 through 2025.
EcoVadis — which assesses more than 130,000 companies across 180 countries on environmental, social and governance (ESG) performance — awards the Silver Medal to companies ranking in the top 15 percent of all assessed firms. The agency evaluates companies across four themes: environment, labor and human rights, ethics and sustainable procurement.
Hyundai Rotem improved its scores across all four categories year-on-year. The company said its Transparent Management Committee, an internal governance body composed entirely of outside directors that has operated since 2020, contributed positively to its ethics score. The committee reviews intergroup transactions, fair trade compliance and shareholder protection matters, and publishes its activities in the company's corporate governance report.
In ethics and compliance, the company said all employees completed its internal training program. In 2024, Hyundai Rotem received the highest grade of "AA" from the Korea Fair Trade Mediation Agency under the Fair Trade Commission for its compliance program.
On sustainable procurement, the company said its practice of conducting ESG assessments of its suppliers and encouraging responsible sourcing throughout its supply chain was reflected positively. In 2024, it signed sustainable parts supply agreements with more than 1,300 partner companies.
In labor and human rights, the company's board-level oversight of safety and health management, led by a chief safety officer at the executive level, drew favorable marks.
On the environment, Hyundai Rotem cited new on-site solar power generation and reductions in waste and greenhouse gas emissions. In September last year, the company received a presidential commendation at the 19th Korea Circular Economy Award, organized by the Korea Environment Corporation under environment ministry.
"It is meaningful that a credible global rating agency has recognized our independent efforts to build a sustainable ecosystem," a Hyundai Rotem spokesperson said, adding that the company intends to pursue additional ESG certifications and accreditations going forward.
Source: Korea Times News
