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Climate Action

HD HYUNDAI will create
a greener future that originated from the ocean.We pursue sustainable growth that gives hope to future generation, starting from the ocean, our business foundation.

Shipbuilding Business 2050 Carbon Neutrality Roadmap HD HYUNDAI’s shipbuilding subsidiaries declared the Roadmap for 2050 Carbon Neutrality and won the approval of the board,
setting HD Korea Shipbuilding & Offshore Engineering as an intermediate holding company.
Shipbuilding Business Carbon Neutrality Roadmap Shipbuilding Business Carbon Neutrality Roadmap
Base Year FY 2018
FY 2030
Reduce 28% compared to 2018
FY 2040
Reduce 60% compared to 2018
FY 2050
Carbon Neutrality

HD Korea Shipbuilding & Offshore Engineering and its shipbuilding subsidiaries1 will boost energy efficiency and adopt low carbon fuels and renewable energy to achieve carbon neutrality.

We also plan to expand our renewable energy use up to 100% by 2050, using both purchased and self-generated electricity.

1) HD Hyundai Heavy Industries, HD Hyundai Mipo, HD Hyundai Samho

Carbon Neutrality Diagram Carbon Neutrality Diagram
Carbon Neutrality
Energy Efficiency
Low carbon Fuels
Renewable Energy
Construction Equipment Business 2050 Carbon Neutrality Roadmap HD HYUNDAI’s construction equipment business declared carbon neutrality in all business sites by 2050
and the strategy is in line with the 1.5℃ scenario of SBTi to meet the Paris Agreement.
Construction Equipment Business 2050 Carbon Neutrality Construction Equipment Business 2050 Carbon Neutrality
Base Year FY 2021
FY 2030
Reduce 42% compared to 2021
FY 2040
Reduce 71% compared to 2021 / RE100 in all business sites
FY 2050
Achieve 100% carbon neutrality

The construction equipment business plans to utilize renewable energy, fuel transition, and energy efficiency along with carbon offsets to achieve carbon neutrality by 2050.

We are introducing self-generation to domestic business sites and searching for optimal options to achieve renewable energy transition in both domestic and foreign sites by 2040.

2050 Carbon Neutrality Graph 2050 Carbon Neutrality Graph
Renewable energy transition 70%
Renewable energy transition (PPA, REC , Green Premium system, etc.)
Self-generation using roofs in business sites
Flexible adoption of renewable energy at overseas affiliates considering respective national policy and infrastructure
Fuel Transition 10%
Reduce diesel use by renewing product portfolio with hydrogen and electrification
Reduce GHG by transitioning heat source from LNG to electricity
Efficiency improvement, K-EV100, etc. 20%
Improve energy efficiency through production facility modernization and investment
Use carbon offset programs such as HVO fuel transition for large and mid-sized equipment
HD Hyundai Oilbank Carbon Reduction Strategy HD Hyundai Oilbank focuses on carbon reduction in business operation, CCUS, eco-friendly energy, resource recycling
and other reduction projects. We are reviewing the roadmap for mid- to long-term GHG reduction to achieve carbon neutrality by 2050.
Focus Areas for Carbon Reduction
Energy Efficiency
Optimize fuel and utility use
Assess energy use periodically
Introduce efficient equipment
CCUS Business
Attain CO2 transition technology
Develop CCS project
Expand carbonic acid gas sales
Eco-friendly Energy
Introduce low-carbon fuels
Introduce hydrogen and ammonia
Expand renewable energy use
Resource Recycling
Expand pyrolosis oil from plastic waste
Develop non-edible oil business
Recycle waste lubricating oil
Other Projects
Develop other carbon reduction projects
HD Hyundai Electric 2050 Carbon Neutrality Roadmap HD Hyundai Electric declared 2050 carbon neutrality
and set specific reduction plans targeted for 2030 and 2040.
HD Hyundai Electric 2050 Carbon Neutrality Roadmap HD Hyundai Electric 2050 Carbon Neutrality Roadmap
Base Year FY 2022
FY 2030
Reduce 30% compared to 2021
FY 2040
Reduce 70% compared to 2021
FY 2050
Achieve 100% carbon neutrality

HD Hyundai Electric’s major plan is to increase the sales of low-carbon products, enhance facility efficiency and utilize carbon offsetting.

We will first switch to renewable energy in overseas business sites by 2030, followed by transition in domestic business sites to achieve RE100 goal by 2040.

Carbon Emission Graph Carbon Emission Graph
Carbon Emission
2022 : 100%
RE100 Implementation + SF6Free Product Sales
2030 : 20% Reduction, 70%, 10% Offset
Facility Replacement
2040 : 50% Reduction, 30%, CCUS, forestation, etc. : 20% Offset
NET Zero
2050 : 70% Reduction, 30% Offset

Scope 3 Calculation & DisclosureThe chain is only as strong as its weakest link

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.

Renewable Energy TransitionGood energy makes good products

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.

Product Life Cycle AssessmentFrom Cradle to Grave

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.

Minimizing Environmental ImpactsA penny saved is a penny earned

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.