South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the shipbuilding holding company of HD Hyundai Co., is the first in domestic shipbuilding to declare carbon neutrality.
HD KSOE on Wednesday said it finalized its roadmap for achieving carbon neutrality featuring plans for energy efficiency, conversion to eco-friendly fuels, adoption of renewable energy and setup of a climate change response system.
The roadmap also includes the gradual annual reduction of CO2 emissions generated by HD Hyundai’s shipbuilding affiliates HD KSOE, HD Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries.
The goal is to achieve carbon neutrality by 2050 through a 28% drop in emissions in 2030 and a 60% reduction in 2040 compared to 2018 levels.
HD KSOE’s plan is based on the global Science-Based Reduction Targets initiative (SBTi) centered on Scope 1 and 2.
The scope refers to the range of a company’s emissions set by the GHG (Greenhouse Gas) Protocol.
To manage the volume of direct emissions under Scope 1, HD KSOE will replace fuel used in sea trial ships and transportation vehicles with low-carbon alternatives such as hydrogen, methanol and ammonia.
Supervision of indirect emissions at workplaces classified Scope 2 will be done by replacing key components such as cranes to cut power consumption and installing LED lights at shipyards.
In addition, self-sufficiency in power generation through solar and wind and purchase contracts will help achieve 100% renewable energy by 2050 under the global initiative RE100.
Another measure is a preemptive response to Scope 3, which recently raised demands for emissions disclosure. Scope 3 refers to external emissions from supply chains and product consumption.
Since March, HD KSOE, which prepared Scope 3 calculation criteria for the first time in domestic shipbuilding, has worked on setting international standards for Scope 3 jointly with domestic shipbuilders and classification societies.
HD Hyundai also recently launched a carbon neutrality organization within the group.
“We will achieve a sustainable future for the oceans and humanity by leading a new paradigm in the shipbuilding and maritime sector,” said HD Hyundai Vice Chairman Ka Sam-hyun, who is also CEO of the group’s environmental, social and governance management.
Write to Hyung-Kyu Kim at [email protected]