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HDKSOE Becomes First to Declare Carbon Neutrality in Korean Shipbuilding Industry

HD Korea Shipbuilding & Offshore Engineering (HDKSOE), a sub-holding company of HD HYUNDAI, recently declared 'carbon neutrality' for the first time in Korean shipbuilding industry.

On May 3rd, the company announced that it has completed its carbon neutrality implementation roadmap, which includes detailed plans for energy efficiency, eco-friendly fuel conversion, renewable energy adoption, and climate change response system construction. 

The key goal is to achieve carbon neutrality by 2050 by gradually reducing the annual carbon emissions generated by HDKSOE and its shipbuilding subsidiaries. Intermediate goals are 28% reduction by 2030 and 60% reduction by 2040, compared to carbon emission in 2018. 

HDKSOE's carbon neutrality plan is based on the 'Science Based Targets Initiative (SBTi) 1.5°C Scenario' and focuses on Scope 1 and 2. 'Scope' refers to the carbon emissions range of a company, as defined by the 'GHG Protocol' (Greenhouse Gas Protocol), one of the most popular global standards. 

First, the company plans to minimize the environmental impact from ship commissioning and transportation vehicles by using low-carbon and zero-carbon fuels such as hydrogen, methanol, and ammonia, managing the amount of carbon emissions directly released (Scope 1). 

Secondly, the emissions indirectly released within the workplace (Scope 2) are managed by replacing key components such as cranes to reduce power consumption and installing LED lighting within the shipyards. The company also plans to achieve RE100 by utilizing self-generation through solar and wind power as well as power purchase agreements. 

HDKSOE also strives to take preemptive measures to respond to the increasing demand for Scope 3 emission disclosures. After establishing the company’s Scope 3 methodology in 2022, HDKSOE has been leading efforts to standardize the industry’s Scope 3 disclosure with domestic shipbuilders and ship classification societies. 

Additionally, HD HYUNDAI recently formed a dedicated organization to achieve carbon neutrality plan within the group. The team manages the group’s carbon neutrality plan as a whole and works on developing renewable energy sources.