Hyundai joins RE100 as Porsche urges suppliers to source 100% renewable electricity
Hyundai Motor Group's five largest affiliate brands are applying to the Climate Group's RE100 scheme this month, the business has revealed, shortly after Porsche unveiled new measures to help suppliers procure renewable electricity.
Hyundai Motor Group’s commitment will see applications sent to the Korea RE100 Committee this month by its namesake Hyundai Motor, as well as Kia, Hyundai Mobis, Hyundai Wia and Hyundai Transys. All applications will entail a commitment to procure 100% renewable energy by 2050 at the latest, with an ambition to reach the milestone by 2040 where possible.
The company said in a statement that some brands will be able to meet the target sooner than others depending on “energy supply and demand conditions” in their areas of operation.
Notably, according to the IEA, Korea had the lowest share of renewables in the energy mix of any nation, as of 2018. This is set to change, with a national net-zero target for 2050 now enshrined in law, but challenges with infrastructure and pricing support remain. Aside from Korea, Hyundai Motor Group has sites in locations including Slovakia and Sweden.
For sites where two or more brands operate, joint response plans will be developed. Hyundai Motor Group has stated that it will explore a mix of onsite solar generation, power purchase agreements (PPAs) and green tariffs, with priority given to the former two options, as these ensure additional generation capacity. Solar panel generating 25,500MWh of electricity each year are already in place across Hyundai Motor’s Asan and Ulsan plants.
Commenting on the new commitment to RE100, Hyundai Motor Group’s chairman Euisun Chung said: “The most important thing to respond to climate change is action.”
The Climate Group recently released its annual report on the RE100. It revealed that more than 310 companies, with combined revenue of more than $6.6trn and accounting for more than 7% of global GDP, are participating in the scheme.
Spotlight on Porsche
In related news, Porsche has announced an ambition for all 1,300 of is suppliers to procure 100% renewable energy for the manufacturing of parts.
The company will begin engaging with suppliers this month to better understand their challenges in making the switch and to promote the opportunities of sourcing green energy.
Given that Porsche has a 2030 target to deliver a carbon-neutral value chain, it has said that it will no longer consider suppliers that either do not use 100% renewable energy, or are unwilling to transition, for long-term contracts. Porsche estimates that its supply chain is currently responsible for around one-fifth of its annual emissions footprint in absolute terms, with this proportion set to double by 2030 as it electrifies its vehicle portfolio.
“Our battery cell suppliers have already had to use green energy since 2020, and now we are taking the next important step,” Porsche’s member of the executive board for procurement Uwe-Karsten Stadter said.
“By using only renewable energy sources, our suppliers are following our example in our efforts to reach CO2-neutrality. We plan to have even more intensive talks with our partners in order to drive forward improvements in our sustainability. It is only by working together that we will be able to combat ongoing climate change.”
To Stadter’s point around suppliers following the company’s example, its Zuffenhausen plant in Stuttgart has been carbon-neutral in operation since it opened two years ago. The company’s headquarters subsequently achieved carbon-neutral status since last year followed by the Weissach development centre and Leipzig manufacturing plant earlier this year.
Join the conversation at edie’s Clean Energy & Transport Forum
On Thursday, July 15, edie is hosting its first Clean Energy and Transport Forum.
Linking to the two key COP26 themes of Clean Energy and Clean Transport, this brand new virtual conference will explore what it will take to deliver the net-zero transition in these key sectors.
The Department for Transport’s Parliamentary Under-Secretary of State Rachel Maclean has been confirmed as one of the keynote speakers, alongside Energy Institute chief executive Nick Wayth; The Climate Group chief executive Helen Clarkson and Innovate UK senior Innovation lead Harsh Pershad.