How clean are carmakers' supply chains? Mercedes ranks top, Hyundai 11th

• Published date: 08 March 2023
• Publication title: The Korea Times

New data by a global alliance of environmental and human rights watchdogs unveiled, Tuesday, a list of the world's top automakers ranked based on how clean and ethical their production processes have proved. Mercedes-Benz topped the leaderboard, while Korean companies Hyundai Motor and Kia Motor sat 11th and 14th, respectively.

The rank was released by Lead the Charge, a new global campaign that encourages automakers around the world to operate more transparently in terms of reducing greenhouse gas emissions and catering to workers' rights. The highlight of the "leaderboard," as the campaign dubbed the rank, is that it took into account not just how many electric cars or other eco-friendly rides they produce but, much more importantly, how environmentally clean their supply chains are throughout their entire manufacturing processes.

In that regard, Hyundai and Kia received low scores ? based on data submitted to the alliance group by the subject companies. Assessing its climate and environmental impact, the alliance marked Hyundai nine out of 100 percent. As to how much effort the company made in protecting the human rights of its workers and adhering to its social responsibility, the firm received 13 out of 100 percent. Its total score was 11 percent.

Kia scored six percent overall.

The latest report by Lead the Charge said Hyundai-Kia, now the third-largest automaker in the world, has sold an increasing volume of EVs and claimed it uses sustainable materials but is "missing the bigger picture and opportunity." It said the Korean firms outperformed the global EV leader Tesla in some areas but has a "host of supply chain issues bubbling up, including child labor at suppliers and a subsidiary in the United States and air pollution from steel manufacturing in Korea."

The report showed Tesla and Toyota, once known as leaders in fighting the climate crisis with the most outstanding fleet of eco-friendly cars in the global auto market, are behind some of their global competitors. Toyota's efforts in reducing carbon emissions throughout its supply chains came particularly shorter than those of its rivals with five percent. In the case of Tesla, it was not so much its supply chain for batteries which deducted the points as its supply chains for other parts and its negligence to adhering to workers' rights.

Julia Pioliscanova, Senior Director of vehicle and e-mobility at Transport and Environment...