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Hyundai, don’t finish last: invest in clean, green steel

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Steel, used to make our cars, is one of the most polluting materials on the planet — making up 11% of global carbon emissions. But there is a solution: green steel, made with renewable energy instead of coal and fossil gas. Transitioning to green steel is crucial for a clean and sustainable future. 

As one of the world’s largest automakers, Hyundai Motor Group (Hyundai, Kia, and Genesis) has the power to drive this change. While Hyundai has pledged to go carbon neutral, its steel production still relies entirely on coal and gas — undermining its climate commitments and polluting the world, contributing to climate change. And its major steel supplier, Hyundai Steel, used zero renewable energy in 2023, ranking last in the world amongst major steel companies.  

Join us in calling on Hyundai’s executives to take real action by committing to green steel and making their cars cleaner and safer for people and the planet. 

Sign the open letter below and demand a safe future, without dirty steel.

Dear Chung Euisun, Chair, Hyundai Motor Group

As Hyundai, Kia, and Genesis owners, prospective customers, and concerned consumers,  we ask that Hyundai Motor Group stop using steel made from coal and fossil gas and start manufacturing cars with green steel.

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Hyundai’s commitment to join RE100 and achieve carbon neutrality by 2045, including in its value chain, is an important first step.

However, building consumer trust requires action, not just promises. In reality, Hyundai Motors continues to rely on coal-based production for its steel. Its major steel supplier, Hyundai Steel, used zero renewable energy in 2022-2023 and ranked last in the world amongst major steel companies on renewable energy use. Hyundai Steel are also building a major new fossil fuel plant, have a weak emissions reduction target of just 12% by 2030, and relies heavily on unproven carbon capture, utilization and storage (CCUS) technology to address its damaging climate impacts.

Investing in green steel is the answer. Cars made with green steel reduce the severe air pollution caused by coal and gas. By decreasing emissions that claim millions of lives worldwide each year, we protect our health and that of our children. 

Competitors like Volvo, GM, and BMW have already made commitments to green steel. The transition to green steel is not just an environmental issue but an essential strategy for future market survival. This would strengthen Hyundai’s position as an environmental leader, proactively respond to strengthening international regulations, and secure the value of Hyundai’s brand. It would also capture the hearts of environmentally conscious young consumers.

We propose three actions for Hyundai Motor Group:

  • Publish a high-quality renewable energy procurement plan for Hyundai Steel
  • Boldly invest in steel production using green hydrogen and electric furnaces
  • Announce a timeline for launching vehicles made with eco-friendly steel, that matches Hyundai Motor’s commitment to be carbon neutral by 2045.

Securing the world’s third-largest market share and driving innovations in mobility technology, Hyundai portrays itself as a pioneer in the automotive industry. Green steel will be the most important piece in solidifying this leadership. 

Change must start right now. Before it’s too late.

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FAQS

What is the goal of this open letter to Hyundai Motor Group?

The goal is for Hyundai, Kia, and Genesis vehicle owners, prospective customers, and concerned consumers to urge Hyundai Motor Group to transition to green steel, so that 1) its cars are safer and cleaner for people and the planet and 2) the company’s commitment to green steel pushes forward an industry-wide transition away from dirty steel and towards clean steel made with renewable energy. This would be a big step towards decarbonizing one of the world’s most polluting industries — the steel industry, which accounts for 11% of global GHG emissions. 

In a situation where climate commitments are plentiful but implementation is lacking, this campaign is a powerful way for individuals to get involved in monitoring corporate promises and push for systemic change.

Hyundai Motor Group announced a decarbonization roadmap and promised to reach net zero. Why is this not enough?

Hyundai has promised net zero across its entire value chain by 2045, but lacks concrete implementation plans to support this. Hyundai Steel's target of 12% emissions reduction by 2030 falls far short of what's needed to meet Paris Climate Agreement goals, and they're even building a new fossil gas power plant scheduled to operate from 2028. Additionally, their plan relies on unproven carbon capture, utilization and storage (CCUS) technology for the remaining 88% reduction after 2030; it sets lower reduction targets compared to competitors (10% reduction for the value chain); and it lacks renewable energy procurement plans (their current RE usage rate is 0%), limiting Hyundai Motor Group's decarbonization roadmap for effective climate crisis response.

Isn't the adoption of electric vehicles more important than green steel?

Both are important. Electrification of internal combustion engine vehicles is essential for reducing greenhouse gases emitted during use, and Hyundai Motor Group has promised 100% electrification in major markets by 2040. 

But the decarbonization of the steel industry is also important as it could bring reduction effects equivalent to India's annual greenhouse gas emissions. As a major purchaser of steel to make its cars, Hyundai has the responsibility and power to drive green steel demand, and therefore accelerate this transition.

I heard renewable energy procurement is difficult in Korea?

While Korea has a low renewable energy penetration rate among OECD countries, this is due to institutional inadequacies and lack of political will, not climate conditions. Experts believe that renewable energy cost issues can also be solved through legislative improvements and technological development. By committing to using renewable energy, major Korean corporations like Hyundai can contribute to accelerating this development.

What is green steel?

Green steel is made with eco-friendly, green hydrogen instead of coal, in electric arc furnaces powered by renewable energy. While there is no globally accepted standard for green steel yet, authoritative institutions like the IEA and Responsible Steel recognize steel as green when carbon emissions are less than 0.4 tCO2e per ton for blast furnace-based steel and less than 0.05 tCO2e per ton for electric arc furnace-based steel.

Steel companies claim that green steel technology is not yet commercialized and requires enormous capital to set up related facilities?

Green steel manufacturing technology (using green hydrogen instead of coal, renewable energy-based electric furnaces) is already in the commercialization stage. European companies like H2-Green Steel and Salzgitter will begin producing green steel from 2025, supplying to Volvo, Mercedes, GM, and others. Cost issues can be resolved through government subsidies and policy support, but what's most needed is bold determination from companies and policy makers. Big automakers like Hyundai have the power to drive demand and therefore accelerate a transition to green steel beyond the car industry.

OUR REPORTS

 
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