Kia
Kia Corporation is a leading global automotive manufacturer, producing a wide range of vehicles including SUVs, sedans, sports cars, hybrids, and electric cars. The company is headquartered in Seoul, South Korea, and operates globally with various manufacturing plants.
Positive signals
Kia completed the installation of 4MW solar power at its domestic AutoLand Hwaseong facility and 2MW at Kia India in 2023, advancing its use of renewable energy in manufacturing.
Fitch Ratings affirmed Kia's long-term foreign-currency issuer default rating at 'A-' with a Stable Outlook in August 2024, reflecting the company's stable financial and governance profile.
Kia was included in the S&P Dow Jones Sustainability Indices ‘World’ Index for two consecutive years and received the CDP Korea Climate Change Carbon Management Sector Honors Award, reflecting third-party recognition of its sustainability performance.
Kia has integrated ESG factors into the performance evaluation of top management and included the ‘Establishment of ESG Framework’ as part of KPI objectives in 2023, expanding ESG accountability to overseas operations.
Kia Corp. received a 'Medium' ESG Risk Rating of 25.4 from Sustainalytics in 2024, ranking 37th out of 85 companies in its industry, indicating average management of material ESG risks compared to peers.
Concerns
Defective vehicles leading to increased theft rates
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Source →Class action lawsuit regarding vehicle theft vulnerabilities
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Source →Sustainalytics rates Kia's management of ESG material risks as 'Average,' indicating there is significant room for improvement in addressing environmental, social, and governance challenges compared to best-in-class peers.
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