Climate Action

In this modern world where all business is combined together, reducing greenhouse gases necessitates cooperation throughout the whole industry and the value chain.

HD HYUNDAI's shipbuilding business promotes the standardization of Scope 3 emission calculation methods with major domestic shipbuilders and classification society, as a follow-up action of Scope 3 calculation and disclosure in 2022. The goal is to create one standardized global guideline after comparing and analyzing each shipbuilder’s Scope 3 calculation methods and consulting with the ship classification society. Under the belief that “saving the environment is not a monopoly," we wish to set a good precedent for the industry to join forces.

Our construction equipment business also discloses Scope 3 emissions in the Integrated report or TCFD report to actively communicate with stakeholders. In the process, we noticed that the product use stage accounts for large proportion in Scope 3, and set a specific carbon reduction goal based on the SBTi 2℃ goal while renewing the business portfolio to electric or hydrogen-based construction equipment. We will continuously advance the management of Scope 3 emissions to reduce greenhouse gases throughout the value chain.

Just as a man is what he eats, we believe that clean energy makes good products.

In 2023, HD HYUNDAI’s construction equipment business joined the global RE100 initiative, committing to use 100% renewable electricity in business operation. Aiming to achieve RE100 by 2040, we established specific transition plans suitable to our business sites and reviewed various options such as self-generation, PPA, and long-term REC contracts. Furthermore, we are optimizing energy use and productivity, checking the electricity usage patterns and energy management systems.

In the overseas corporations, Hyundai Jiangsu Construction Machinery is self-procuring 3,800 MWh of electricity (50% of annual usage) using the rooftop solar power generation, while HD Hyundai Construction Equipment India procures 4,700 MWh (70% of annual usage) from solar power facilities on idle land. Meanwhile, HD Hyundai Infracore’s Gunsan Factory plans to supply renewable energy with a total of 10.5MWp (85% of annual power consumption) by 2024, and expand the application to Incheon Factory and global business sites. HD Hyundai Infracore’s articulated dump truck factory in Norway successfully sourced 100% of its electricity from renewable energy, and more plans are under review to achieve RE100 targets through various methods.

Quantifying the environmental impacts throughout a product’s life cycle is crucial for a systematic and sustainable management, starting from raw material to the end of product use and retrieval.

Among the shipbuilding subsidiaries, HD Hyundai Heavy Industries conducted a life cycle assessment (LCA) on one of its products to track down the carbon emissions in the whole process of raw material collection to the ship scrapping after use. This project measures the amount of carbon emissions over the entire life cycle of a 174,000㎥ sized LNG-powered carrier, and holds significance as the first trial of LCA on ships using empirical data. Starting from this, we plan to expand LCA to cover all our key flagship products, so that we may communicate the environmental impacts of our products with the stakeholders more transparently.

A subsidiary of HD Hyundai Oilbank conducted LCA on polymer products (PP, HDPE, LDPE, EVA, etc.) to proactively respond to the EU Batteries Regulation on carbon footprint. We calculated the amount of greenhouse gas emissions from major substances at each manufacturing stage, and by identifying specific emission status on each stage, we plan to build effective reduction measures. HD Hyundai Oilbank is also on progress with LCA on all products to systematically manage the environmental impacts.

HD HYUNDAI believes that valuing resources is the first step we can take to protect the environment.

Our shipbuilding business consistently monitors resource waste factors to save energy and water. In particular, we aim to maximize facility efficiency by incorporating digital technology into the management system, as well as visualize and manage various energy consumption data including electricity, gas, water and compressed air.

Our construction equipment business conducts energy saving at business sites with streamlined manufacturing process and energy management systems. We continuously search for improvement measures via the Energy Management Council to discover new energy-saving agendas or items, along with state-of-the-art energy projects.

HD Hyundai Oilbank in the oil refining business is on progress with the energy optimization of production plant to improve energy efficiency, and regularly reviews energy saving items. We gather innovative ideas for energy efficiency through various methods and apply them to the manufacturing process step by step. In addition, we check the efficiency of process utility and improve its performance to reduce greenhouse gas emissions.