We introduce our ESG policy book which contains Kia's policies on various ESG issues across the value chain. Kia establishes company-wide policies for ESG issues such as human rights, safety, and the environment to provide business standards and guidelines for us and our partners. We will continuously revise our policies in response to the changing environment.
Kia is reinforcing ESG integration in the decision making process, overseen by the Sustainability Management Committee, which is an integral part of the Board, while closely monitoring ESG issues. Additionally, a dedicated sustainability management organization has been elevated to a division from a team, aiming to implement improvement tasks across all business sectors based on the newly established medium- to long-term ESG strategy. The progress is monitored through discussions within the council.
We are integrating ESG factors into the performance evaluation of top management, and each division and business unit to drive business operations and decision making from a sustainable management perspective. Specifically, in 2024, we have expanded its application to the overseas sector for the first time, encouraging the promotion of ESG-oriented business initiatives throughout the entire organization.
Strengthening ESG KPIs Across Domestic and International Sectors
Strengthening ESG KPIs Across Domestic and International Sectors
Company-wide ESG integration through incorporation of performance evaluation systems for ESG, including carbon emissions reduction, progress on RE100, and compliance with fuel efficiency regulations
Company-wide ESG integration through incorporation of performance evaluation systems for ESG, including carbon emissions reduction, progress on RE100, and compliance with fuel efficiency regulations
Internalizing Risk Prevention and Response Systems
Internalizing Risk Prevention and Response Systems
Mandatory KPI evaluations across all global regions-encompassing human rights risk assessments, enhanced safety policies, and security system implementation levels
Mandatory KPI evaluations across all global regions-encompassing human rights risk assessments, enhanced safety policies, and security system implementation levels
Monitoring Implementation Through Domestic and International ESG Councils
Monitoring Implementation Through Domestic and International ESG Councils
Sharing and reviewing key ESG issues at major sites, including relevant domestic sectors and European operations.
Sharing and reviewing key ESG issues at major sites, including relevant domestic sectors and European operations.
Kia identifies and mitigates financial and non-financial risks through integrated management. Additionally, to ensure effective risk management, responsibilities are allocated across three levels. Primarily, dedicated managers within each business unit continuously monitor and manage potential risks during operational activities. Furthermore, a dedicated team within the Strategic Business Planning Division oversees risk response status by implementing company-wide risk sensing and response processes. Kia reviews material ESG risks identified through the company-wide risk management process. Centered around the Sustainability Management Committee, Kia has established an ESG risk management system to review key sustainability-related issues and report the implementation status and plans of ESG tasks. The committee also deliberates and decides on ethics management and social contribution policies. ESG elements are reflected in KPIs across departments to manage non-financial risks comprehensively.
Kia manages key risks that could impact our sustainability, guided by our risk appetite. For issues where our risk appetite is low—meaning we have a low tolerance for the risk involved—these are consistently presented and discussed at executive management meetings, including with top leadership. Through relevant consultative bodies, we respond swiftly to external changes. Key risks identified and managed by our company include legal/regulatory risks, product/quality risks, health and safety risks, and macroeconomic risks.
Kia conducts systematic analysis and establishes response strategies to address a wide range of risks surrounding the company. This process includes identifying risks, assessing their potential impact and likelihood, prioritizing them, determining the level of risk tolerance, and implementing appropriate countermeasures. Through its internal risk sensing system, Kia identifies key risks and evaluates them quantitatively from both financial and business perspectives to guide its strategic response.