Kia : 2024 Sustainability Report

Kia Sustainability Report 2024

Contents

Introduction		Our Priorities
CEO Message	3	Kia ESG Management Strategy
Company Overview	5	ESG Governance
About Kia	6	Double Materiality Assessment
Global Network	7
ESG Major Achievements	8

Sustainable & Future Focus		Material Topics
Sustainable Future Mobility	10	Climate Change
Social Contribution for a Better Society	13	Resource Circulation
Strengthening Sustainability in Production Sites	16	Employee
		Supply Chain
		Customer Safety & Quality
		Business Ethics

19

21

22

29

42

54

64

73

80

Sustainable Progress

Environmental
Environmental Management	86
Natural Capital Management	89
Social
Human Rights Management	93
Work Environment & Labor Management	96
Information Security	99
Governance
Board of Directors	101
Shareholder-Friendly Policy	105
Tax and Accounting	106
Enterprise Risk Management	107
Stakeholder Engagement	109

READER'S GUIDE

READER'S GUIDE 'MOVE' is the name of the Kia Sustainability Report, which refers to a movement that makes a positive change in the world through mobility. You can check more details by clicking the icon.

ESG Factbook

Financial Data	111	GHG Assurance Statement	134
ESG Data	112	Third-party Assurance Statement	138
GRI / ESRS / SASB / WEF Index	125	About Move	140

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

3

CEO Message

Sustainable Movement

We are deeply grateful to our stakeholders for your encouragement

and support in our transformation into a Sustainable Mobility Solutions Provider.

for an Inspiring Future for All

In 2023, Kia achieved its best results in history.

Sales increased year-over-year, with solid growth in our key regions of Korea, the United States, and Europe. Our dedicated electric vehicles, EV6 and EV9, were recognized for their excellence in global markets, including being named North American Utility Car of the Year in 2023 and 2024.

Even with these remarkable achievements, Kia has never stopped thinking about sustainability. In 2023, we established a new ESG Management Framework to further establish a concrete plan for sustainability that has been consistently emphasized through our corporate vision, philosophy, and brand strategy.

We set "Sustainable Movement for an Inspiring Future" as our ESG vision, which envisages our determination to continuously move toward an inspiring future with various stakeholders. We are practicing ESG management that includes eco-friendliness, circular economy of resources, safety, stakeholder satisfaction, sound governance, and ethical management under the three core values of "Cleaner and Circular," "Safe and Satisfying," and "Transparent and Trustworthy."

In the Environmental aspect, to mitigate the global climate crisis, we are reducing carbon in all stages of supply, production, logistics, disposal, and use with the goal of achieving carbon neutrality by 2045. Moreover, to accomplish RE100 by 2040, we generate our own solar power at AutoLand India and AutoLand Hwaseong, and have signed the largest power purchase agreement in Korea to secure renewable energy.

We have also been collaborating with Ocean Cleanup, a global environmental NGO, and began removing waste from the sea and recycling the collected waste plastic into resources.

In the Social aspect, by improving product quality for customer safety and satisfaction, we were recognized for our competitive power for quality. In the J.D. Power U.S. Automotive Performance, Execution and Layout (APEAL) Study, seven of Kia's vehicles ranked first in their respective classes. In addition, we provided support for electrification R&D and equipping carbon-neutral facilities to secure the future competitiveness of our suppliers. For local communities, in Korea, we expanded Green Trip a CSR program that supports travel for people with disabilities, and globally, Green Light Project (GLP), a CSR program that supports self-reliance in underdeveloped countries.

In the Governance aspect, Kia strengthened our board accountability. The majority of the board consists of independent directors who have expertise in various fields, such as industry, technology, finance, and accounting. Additionally, we have reinforced our shareholder-friendly policies by constantly increasing dividends and repurchasing and retiring treasury shares to enhance corporate value.

In acknowledgment of these efforts, Kia was included in the Dow Jones Sustainability World Index (DJSI) in 2023 for the second consecutive year.

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

4

Sustainable Movement for an Inspiring Future

Cleaner & Circular

Safe & Satisfying

Transparent & Trustworthy

Kia aims to continue our growth as a bettter company that resonates authentically by addressing global environmental and social issues.

Cleaner & Circular

To mitigate climate change, Kia will reduce greenhouse gas emissions by accelerating our RE100 implementation, which involves expanding the self-generation of power to our maximum capacity and signing agreements to introduce renewable energy to AutoLands in Korea and abroad. Additionally, through our partnership with Ocean Cleanup, we will strengthen our resource circulation system by reprocessing marine plastic waste into new vehicle accessories for the EV3, to be released within the year. Furthermore, to expand the use of recycled plastic in our vehicles to over 20% by 2030, we will develop specific action plans, including material development and the establishment of a waste resource supply chain.

Safe & Satisfying

Kia aims to internalize a corporate culture centered around customers and people in its corporate values and actions. Additionally, we will conduct ESG assessments in accordance with our sustainable supply chain management strategy, establish and support dedicated organizations for secondary and tertiary suppliers, and enhance their ESG management systems based on the assessment results. To create a happy society for everyone, we plan to launch corporate social responsibility efforts for multicultural families and people with disabilities who suffer from a lack of social support and acceptance.

Transparent & Trustworthy

To internalize the culture of ESG management across the company, we will emphasize the sustainability elements in management's KPI performance evaluation.

In addition to ensuring diversity by increasing the proportion of diverse independent directors, we will constantly enhance the standards for review and decision-making on important matters to be implemented based on the varied expertise of our board members.

We will further practice transparent management by raising employees' awareness of compliance through actively deploying fair trade compliance activities and expand shareholder value by continuing repurchase and retirement of treasury shares.

Dear valued stakeholders,

In these times of uncertainty, Kia seeks to continue our transformation for unwavering growth. We will persist in our efforts for EV transformation to respond to the market environment, consolidate our position as a Tier 1 EV brand, and strengthen our PBV competitiveness to meet the needs of diverse customers.

To exercise our global corporate citizenship, we vow to remain steadfast in our commitment toward sustainability for all. Through our sincere determination to address climate change, achieve shared growth with stakeholders, and conduct transparent and ethical management activities, we will pursue our ESG vision of "Sustainable Movement for an Inspiring Future." We respectfully request your continued interest and support for Kia in our endeavors.

Thank you.

June 2024

Ho-sungSong, CEO/President, Kia

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

5

Company Overview

Since its foundation in 1944, Kia has evolved into a global automobile brand over the past 78 years. In 2021, we changed our company name and logo from 'Kia Motors' to 'Kia' and announced a new brand direction and vision, transforming from an automobile manufacturer to a mobility brand. Along our journey of transformation into a 'sustainable mobility solution provider' we will continue to strengthen our business capabilities, focus on sustainable growth, and we will remain committed to moving toward a future that inspires everyone.

Major Financial Performance

No. of vehicles sold	(in retail)	Revenue			(Unit: KRW billion)	Operating profit &	(Unit: KRW billion, %)	Net income	(Unit: KRW billion)
												operating margin
3,015thousand units		KRW 99,808.4billion		KRW 11,607.9billion / 11.6%	KRW 8,777.8billion
2022				2,897,255	2022					86,559.0	2022					7,233.1(8.4%)	2022					5,409.0
2023				3,015,762	2023					99,808.4	2023					11,607.9(11.6%)	2023					8,777.8
No. of eco-friendly vehicles sold			(in retail)	EV	HEV			PHEV		Revenue from eco-friendly vehicles1	(Unit: KRW billion)
575,773units														KRW 26,666.8billion
2022					487,159			units	305,585units	88,254units	2022							21,377.4
2023						575,773			2023							26,666.8
							181,934

Line-up of Kia

1. Based on the management accounting standards

(as of June, 2024)

Sedan

RV (Recreational Vehicle)

EV & PBV (Platform Beyond Vehicle)

Commercial Vehicle & Bus

Morning | Ray | K3 | K5 | K8 | K9	Niro | Stonic | Seltos | Sportage | Sorento | Mohave	EV	Niro | Niro Plus | EV5 | EV6 | EV9	Bongo3 | Granbird
Pegas | Ceed	Carnival | Soul | Carens | KX1 | Sonet		Bongo3 | Soul | Ray
	Zhìpǎo | XCeed | Telluride	HEV	K5 | K8 | Niro | Sorento | Sportage | Carnival
		PHEV	Niro | Sorento | Sportage | Ceed | Xceed

* "Eco-friendly vehicles" include EVs (Electric Vehicles), HEVs (Hybrids), and PHEVs (Plug-in Hybrids), while "electrification" includes only EVs (Electric Vehicles). ** PBV: Niro Plus

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

6

About Kia

Since its brand relaunch in 2021, Kia has been transforming its entire business and has established a corporate vision system to drive its business more systematically. Kia believes in the power and value of movements that inspire new ideas and value of movements that inspire new ideas, and we exist to create spaces and times that enrich them. Based on this belief and brand purpose, Kia has established "Sustainable Mobility Solutions Provider" as its corporate vision.

Corporate Vision

We established Plan S as a mid- to long-term strategy to achieve our corporate vision, realized through three pillars: Planet, People, and Profit. Planet focuses on leading environmental and social responsibility. People aims to deliver the highest customer value. Profit enhances future revenue by becoming an EV Tier 1 Brand, a PBV 1st Mover, and strengthening business fundamentals. Our goal is to foster a "customer-oriented and people-oriented" corporate culture.

Brand Strategy

As a 'Sustainable Mobility Solutions Provider', Kia promises to always create new movements to make life better for our customers. for a better life. As a responsible mobility company, Kia is committed to providing Kia aims to be a brand that contributes to customers, communities, and the global society and environment by providing sustainable mobility solutions customers, communities, and the global society/environment.

		Movement Inspires Ideas
Brand
Purpose	We create space and time inspiring new ideas
Company	Sustainable Mobility Solutions Provider
Vision
		Create a new movement for a better life
		Plan S
Corporate
Strategy

PLANET	PEOPLE	PROFIT
Shift Our	Shift Our	Shift Our
Sustainability	Mindset	Business

Corporate	Customer-oriented,people-oriented culture
Culture

Prologue Consistent New Kia Brand

Total Transformation

• Comprehensive changes based on the new CI and design philosophy
• Strengthening global brand presence through innovation in customer experience at touchpoints

Chapter 1 Desirable EV Brand

EV Tier 1 Brand

• Expanding EV lineup and securing competitiveness to become a EV Tier 1 Brand
• Enhancing customer convenience through advanced battery strategy and expanded charging infrastructure

Chapter 2 Personalized Mobility Brand

PBV 1st Mover

• Pioneering the PBV market through the development of customized vehicles and solutions
• Providing customized mobility experiences to meet diverse customer needs

Chapter 3 Aspirational Solutions Brand

Generating values by interconnecting future business

• Developing autonomous driving technology based on SDV1
• Creating synergies with future businesses, including building a sustainable mobility ecosystem

1. Software Defined Vehicle

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

7

Global Network

Kia operates production bases, R&D centers, and design centers in major regions at Korea and overseas, strives to provide customized products and services through its global sales and service network.

			39
			34	22
			11
					4
		12	3
			20
		23		18
	10		19	29
33	21		16
		14	15		17		27
9
						1
38		13				36	35
2
30					28

	5		8
		37
		6
31		32
			26
			7

24

25

Head Office	Regional Headquarters
Head Office		North America (Irvine, USA)	2
(Heolleung-ro,Seocho-gu, Seoul) 1		Europe (Frankfurt, Germany) 3
		Russia (Moscow) 4
		Latin America (Miami, USA)	5

Middle East & Africa (Dubai, UAE) 6

Asia Pacific (Kuala Lumpur, Malaysia) 7

India (Gurgaon, India) 8

Sales and Services

Korea

Sales sector 15 headquarters, 283 direct sales branches, 353 agencies, 8 delivery centers

Service sector 18 direct service centers,

761 comprehensive/ specialized Auto Q

Overseas

Sales sector 23 sales corporations, 165 agencies, 4,537 dealerships

Sales Corporation

USA 9 /Canada 10 /Germany 11 /UK 12 / Spain 13 /France 14 /Italy 15 /Austria 16 /Hungary 17 /Czech Republic 18 /Slovakia 19 Poland 20 / Belgium 21 /Sweden 22 Netherlands 23 /Australia 24 /New Zealand 25 Thailand 26

Production

Korea

AutoLand Gwabgmyeong (330,000 units) 27 AutoLand Hwaseong (530,000 units) AutoLand Gwangju (490,000 units)

Overseas

China Yeomseong Plant (Yancheng, 750,000 units) 28

Slovakia (Zilina, 330,000 units) 29 Georgia, USA (Georgia, 340,000 units) 30 Mexico (Pesqueria, 400,000 units) 31 India (Andhra Pradesh, 350,000 units) 32

R&D

Korea

Hyundai Motor Group Technology Research

Center (Hwaseong, Gyeonggi-do)27

Environment Technology Research Center

(Yongin, Gyeonggi-do)

Uiwang Technology Research Center (Uiwang,

Gyeonggi-do)

Overseas

R&D Center and Design Center

R&D Center USA Detroit, Chino, Irvine, CPG 33 Europe Ruesselsheim, Nurburgring 34 Japan Yokohama 35 China Yantai 36

India Hyderabad 37

Design Center

USA Irvine 38

Europe Frankfurt 39

(as of June., 2024)

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

8

ESG Major Achievements

Kia has established an ESG vision titled "Sustainable Movement for an Inspiring Future," emphasizing the importance of sustainable growth more than ever. We are strengthening our response to key ESG issues that are crucial for our sustainable growth and impactful to our stakeholders, solidifying the foundation of our ESG management system.

ESG Evaluation · Awards

S&P Dow Jones

Sustainability Indices

'World' Index for

2 consecutive years

GSMA

Sustainability category for 6 consecutive years · Hall of Fame induction

Chosun Biz 2023 THE ESG

THE ESG AWARDS

Grand Prize

CDP Korea Climate Change

Won Carbon

Management Sector

Honors Award

Major Achievements in Various Areas

Environmental

Driving solar power at domestic and overseas

AutoLand Hwaseong(4MW), and Kia India(2MW) completed in 2023

Promotion of securing renewable energy

Signing Korea's Largest PPA Agreement(Introduction of a total of 219MW PPA by 2031)

Expanding the use of Recycled Plastic

Establishing enterprise governance for over 20% application in 2030 (Plastic Recycling Council)

Eco-friendly materials in EV9

Recycled plastic and bio-basedeco-friendly materials, weigh about 34kg.

(Based on EV9)

Social

Supporting future competitiveness of suppliers

Funding including R&D investment, Established an organization to support 2nd/3rd tier suppliers

Improving supplier ESG management

Conducting diagnostics for All 1st-tier suppliers and prioritized 2nd-tier suppliers, Establishing ESG compliance provisions

in contracts

Reinforced safety and health at workplace

Secured ISO 45001 certification at all business sites, Expanding adoption of new safety technologies

Expanding Kia's representative social contribution

Green Light Project in 3 new countries, established Green Trip Jeonju base, Confirmed site for restoration of tidal flats

Governance

Incorporating ESG into CEO performance evaluations

Organizing sustainability elements beyond business and finance (safety, culture, etc.)

Expanded diversity and independence of the Board of Directors (BoD)

Over 50% independent directors, 60% female independent directors

(As of 2024)

Enhanced shareholder-friendly policies

Dividend: 5,600 won per share (+60% YoY),

Buyback: 500 billion won, 50% retired

• Additional 50% buyback planned upon Q3

'24 financial target achievement.

Evaluation of the effectiveness of the compliance control standard

Conducting an evaluation of the effectiveness of the compliance control standard through external experts once a year

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

9

Sustainable & Future Focus

CONTENTS

Sustainable Future Mobility	10
Social Contribution for a Better	13
Society
Strengthening Sustainability in	16
Production Sites

Kia Sustainability Report 2024

Introduction

Sustainable&Future Focus

Our Priorities

Material Topics

Sustainability Progess

ESG Factbook

10

Sustainable Future Mobility

PBV, the Key Momentum for Customer-Oriented Kia

Kia's customizable PBV integrates software and future technologies that will facilitate business operations and customers' daily lives and differentiate their mobility experience. In this regard, Kia redefined PBV from "Purpose-Built Vehicle" to "Platform Beyond Vehicle." As a "Platform Beyond Vehicle," PBV will usher in a new era of business and lifestyle by providing extended experiential value. Through PBV, Kia will expand its B2B business and drive B2C demand, getting a foothold as the first mover in the global PBV market.

PBV Optimized for Customers' Business and Lifestyle

Platform Beyond Vehicle(PBV) is the future of personalized mobility. Its interior can be flexibly modified to meet the user's purpose, whether it's for passenger transportation, logistics, or leisure. If the traditional car is ready-to-wear, PBV can be likened to a tailored suit. With the recent boom in e-commerce, we expect to see steep growth in the B2B market mainly for transportation and delivery services. As a result, the B2B companies' vehicle needs, including electrification, are expected to increase dramatically. Kia's PBV products will help B2B customers improve the challenges they face in operating their existing fleet, contributing to their business efficiency and the environmental value of B2B companies.

A Dedicated Platform for Skateboard-type PBVs to Reflect Different Needs

Kia PBV has a specialized customer-oriented process where customers are directly involved from the product configuration stage to propose specifications, which are then incorporated into the development process. To effectively reflect various needs, we designed and applied a highly scalable, dedicated skateboard platform for PBVs, enabling excellent interior space utilization while maximizing customers' vehicle utilization through interchangeable upper body modules.

Kia PBV will also offer optimized options for body types, as well as interior and exterior layouts, door types, batteries, and more to accommodate customers' needs and purposes. PBV solutions that will be available through an open platform are also underway to enhance customer convenience. Customers can choose from PBV-specific solutions, as well as their own business solutions and third-party solutions to best fit their business objectives. The solutions will be optimized for customers' business journey, including fleet operations, vehicle maintenance, and fuel efficiency management. We have a mid-tolong-term plan to apply next-generation autonomous driving technologies to transform our customers' businesses together. We also aim to complete Kia's PBV-specific ecosystem by securing capabilities and infrastructure for solutions such as various financing programs applicable at each stage of vehicle use, including purchase, use, and disposal, as well as charging and specialized after- sales support.

IVI Solution		FMS Solution		EV Charging Consulting Solution
(In-Vehicle Infotainment)		(Fleet Management System)

• Use AI to deliver useful information tailored to users' travel goals
• Offer the IVI App Market where users can enjoy smartphone-like experience inside the vehicle

• Collect and manage vehicle data of multiple PBVs through the API system for integrated vehicle management
• Maximize efficiency in business opera- tions through preventive maintenance based on vehicle condition, etc.

• Provide information on optimal charging schedules and charging stations considering customers' PBV operational conditions