HD Hyundai Shipbuilding Affiliates, Daewoo Shipbuilding, Samsung Heavy Industries Join
American Bureau of Shipping and Korean Register
Establish Standard Guidelines for Greenhouse Gas Scope 3 Calculation
HD Hyundai is creating the first-ever "Carbon Footprint One Team" in the shipbuilding industry in collaboration with domestic shipbuilders and classification societies. This joint response comes as market demand for the disclosure of Scope 3 emissions grows. A carbon footprint refers to the total amount of greenhouse gases generated throughout the entire process of activities or the production and consumption of goods by individuals, companies, or nations.
On the 17th, HD Hyundai announced that it will start a project to track and standardize carbon footprints together not only with its group shipbuilders but also with major domestic shipbuilders and domestic and international classification societies.
To this end, the day before, at the Grand Josun Hotel in Haeundae-gu, Busan, HD Hyundai’s shipbuilding affiliates (intermediate holding company Korea Shipbuilding & Offshore Engineering, Hyundai Heavy Industries, Hyundai Mipo Dockyard, Hyundai Samho Heavy Industries), Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries, and domestic and international classification societies (American Bureau of Shipping and Korean Register) signed a joint development project agreement for the standardization of Scope 3 greenhouse gas emissions calculation in the shipbuilding industry.
On the 16th, attendees are taking a commemorative photo at the joint development project agreement ceremony for standardizing Scope 3 greenhouse gas emissions calculation in the shipbuilding industry, held at the Grand Chosun Hotel in Haeundae-gu, Busan. (From left) Darren Leskowski, President of Far East Asia Sales at American Bureau of Shipping (ABS), Woo Je-hyuk, Vice President of Daewoo Shipbuilding & Marine Engineering, Lim Young-ho, Vice President of Hyundai Heavy Industries, Bae Jin-han, Vice President of Samsung Heavy Industries. Photo by HD Hyundai
They will mutually share, compare, and analyze each company’s Scope 3 greenhouse gas emissions calculation methods, and after consulting with classification societies, standardize the calculation methods to establish a global guideline by the end of this year. The derived guidelines will be disclosed in the future to gather feedback from various stakeholders, and the scope of participation will be expanded to include global shipbuilders and international organizations such as the International Maritime Organization (IMO) to establish the standards as a global norm.
Recently, sustainability disclosure guidelines such as the EU Corporate Sustainability Reporting Directive (EU CSRD), the International Sustainability Standards Board (ISSB), and the U.S. Securities and Exchange Commission (SEC) climate disclosure standards have mandated the disclosure of Scope 3 emissions, increasing market demand for Scope 3 emissions disclosure. Unlike Scope 1 and 2, which measure greenhouse gases generated during the shipbuilding process, Scope 3 is a comprehensive concept that includes greenhouse gas emissions from the production of ship raw materials, excluding the product manufacturing process, and emissions from ship operation after delivery until scrapping.
Last year, Korea Shipbuilding & Offshore Engineering became the first in the domestic shipbuilding industry to calculate and disclose Scope 3 emissions. It is recognized as a leader in this field by focusing all efforts on research, development, and commercialization of low-carbon and eco-friendly ships to reduce greenhouse gas emissions.
Darren Leskowski, ABS’s Far East Asia Sales Manager, who attended the agreement ceremony, said, “Although market demand for Scope 3 emissions measurement is increasing, there was no standardized methodology yet. It is meaningful that leading companies in the shipbuilding industry and classification societies are participating together to create a new global standard for meticulously measuring and verifying carbon emissions.”
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