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Declaration of Carbon Neutrality by 2045

Kia aims to provide inspiring movement while reducing negative impacts on nature caused by movement. In November 2021, Kia officially declared to achieve carbon neutrality by 2045. To this end, Kia plans to reduce its carbon emissions by 97% compared to 2019 by 2045 and seek ways to offset the remaining amount, making net emissions "zero" at all stages. This will be promoted with the goal of achieving the 3Ss: Sustainable Energy, Sustainable Mobility, and Sustainable Planet.

Key Milestones for Carbon Neutrality

Direction

  • Sustainable Energy
  • Sustainable Mobility
  • Sustainable Planet

Reduction of Environmental Impact across the Entire Value Chain

Accordingly, Kia diminishes pollution by conducting a thorough evaluation of the entire value chain of upcoming products. As a result, pollutants in the value chain are classified, and the evaluation results are used to improve the eco-friendliness of our manufacturing process.

Supply
Chain
Production
Product
Use
Distribution
and
disposal

Environmental impact analysis over life cycle of a vehicle

Kia’s Climate-related financial Disclosures

The Task Force on Climate-related Financial Disclosures (TCFD) has presented recommendations that include key disclosure elements in order to communicate climate change information based on a globally unified standard. The Recommendation calls on companies to disclose information transparently in four areas: governance, strategy, risk management, and metrics and targets associated with climate change. Kia declared its support for the TCFD in December 2020 and disclosed its first climate change-related financial information in the 2021 ESG Special Report. Based on this, Kia will promise to continually disclose related information with full transparency in the future.

TCFD (Task Force Climate-related Financial Disclosures) (PDF)

TCFD recommendations

Governance

Disclose the organization’s governance around climate-related risks and opportunities.

Strategy

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

TCFD timeline

December, 2015

Launch of the TCFD

June, 2017

Announcement of the TCFD
recommendations

December, 2020

Kia declaring support for the TCFD

March, 2021

Kia’s first disclosure in response to the TCFD
recommendations

November, 2021

2045 Carbon Neutrality
declaration

April, 2022

RE100
membership

EV6, the first Korean car in history to achieve product carbon footprint certification

Leap forward as a provider for eco-friendly mobility solutions through product eco-friendly management

Kia became the first Korean automaker to achieve the “Product Carbon Footprint” certification after trying to reduce carbon emissions in all value chain. This is an important validation of a broad range of measures we are now taking to reduce the carbon footprint of a vehicle throughout its lifecycle.

Kia is making every effort to pursue eco-friendliness in the entire manufacturing process. It measures and reduces the environmental impact (carbon emissions) of EV6, from raw materials to procurement, parts delivery, vehicle assembly, distribution, usage, and scrapping cars. A range of eco-friendly materials have been introduced to EV6 including PET recycled plastics, floor mats and seat coverings meaning one model contains the equivalent of 107 500ml PET bottles. As we introduce more electrified models to our lineup over the coming years, we will step up our sustainability efforts and ensure we are achieving high levels of transparency when it comes to environmental impact.

The “Product Carbon Footprint” certification is aimed at transforming the country into a sustainable, low-carbon economy. It is a certification system awarded by The Carbon Trust, which comprehensively measures the environmental impact of carbon emissions throughout the process from manufacturing to disposal of products and then awards them when they meet the criteria.



Commitment for Sustainability, RE100 Declaration

KIA aims to transition to 100% Renewable Energy by 2040

Kia has clearly expressed its willingness to achieve global carbon neutrality and is actively participating in responding to climate change by announcing its joining of RE100 (100% renewable energy) with four Hyundai Motor Group affiliates in July 2021.

In particular, Kia aims to preemptively convert the use of electrical energy in domestic and overseas operations to 100% renewable energy by 2040. Kia has already established a system to replace all electricity used by its Slovak plants with renewable energy in 2019, including Autoland Gwangmyeong and Hwaseong, Gwangju is taking the lead in sustainable management by obtaining the “Energy Management System (ISO50001)” certification, which is certified by the International Organization for Standardization (ISO).

In addition to establishing a RE100 response cooperative system in global workplaces, along with Hyundai Motor Group, we plan to expand renewable energy consumption by reviewing various measures such as “self-generation” that produces renewable energy power by installing solar panels at major workplaces; “Power Purchase Agreement (PPA)” that purchases power directly from renewable energy suppliers; and “Green Premium” that purchases certified renewable energy at a ‘green premium’ price higher than the standard electricity tariff through KEPCO.

Acknowledged as the Best Company for Climate Change and Water Resource at the 2020 CDP Korea Awards

Kia joined the Honors Club for the best response to climate change for two consecutive years. Furthermore, Kia was awarded the Grand Prize for water for the first time in the automobile industry.

For the past two years, Kia has achieved the highest grade, "Leadership A," in the climate change sector at the 2020 CDP (Carbon Disclosure Project) which is recognized as one of the most reliable sustainability assessment indicators with over 9,000 companies worldwide. The company was also named on the Carbon Management Honors Club, which recognizes the top five companies in its field in Korea.
For the first time in 2020, we received "Leadership A" in the Water program, and we were selected as the first company to receive the Grand Prize in the automobile industry.

Eco-friendly vehicles

The number of eco-friendly vehicles
sold in 2020 (wholesale): 219,274 units – up from 154,050 units in 2019 and 146,919 units in 2018

100% renewable energy

Slovakia plan, 100% reliant on electricity produced via renewable energy sources

Green Investment

Allocation of KRW 12.1 billion to establish anti-pollution facilities, etc. in 2021 (triple the budget in 2020)

Water Recycling

Inclusion of a wastewater retention system in our India plant (adoption of the system since the plant design phase) for complete recycling and reuse of wastewater in 2019