In November 2024, ASL launched the first-ever survey of major steel companies’ renewable energy use. Our survey found big steelmakers are failing to make the switch to renewables. Hyundai Steel ranked joint-last globally, using zero renewable energy in 2022 and 2023.
This finding prompted an investigation into the largest of these companies, Hyundai Steel, and its approach to climate action. Regrettably, ASL’s analysis shows Hyundai Steel has made no commitment to renewable energy or green hydrogen. Its emissions are growing and Hyundai Steel has one of the least ambitious emissions reduction targets amongst its Japanese, European, and US competitors.
The company is also investing in the construction of a major new fossil gas plant and claims that this will reduce company emissions. In fact, Government emissions data shows that Hyundai Steel’s fossil gas plant will be significantly more emitting than the grid.
Hyundai Steel’s decision to back in fossil fuels puts the ESG credentials of its major customers, including Hyundai Motor Company, at risk. It is difficult to see how Hyundai Steel can market an eco-steel brand that has been made with zero renewable energy and an increasing reliance on fossil fuels.
This report considers how Hyundai Steel and Hyundai Motor Company can address reputational risks to their brands, by committing to green steel made with renewable energy.