Daedong Sets 30% Greenhouse Gas Reduction Target by 2030

Advancing Responses to Environmental and Climate Change Risks
Reviewing the Introduction of Factory Energy Management Systems

Future agriculture company Daedong has announced its commitment to reduce greenhouse gas emissions by 30% by 2030 compared to 2021 levels. To achieve this, the company is preparing mid- to long-term greenhouse gas reduction strategies, including considering the introduction of FEMS (Factory Energy Management System) at Daedong Metal and other affiliates with the highest emissions within the group.

According to the "2025 Daedong Group ESG (Environmental, Social, and Governance) Report" published by Daedong on July 2, the company has set its 2030 greenhouse gas emissions target at 11,616.26 tCO₂eq (tonnes of CO₂ equivalent). This represents a 30% reduction from the 2021 emissions level of 16,594.66 tCO₂eq. Since 2021, Daedong has been quantitatively managing its greenhouse gas emissions, and this carbon reduction target was established by quantitatively analyzing risks and opportunities related to climate change, in line with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).

One of the greenhouse gas reduction strategies prepared by Daedong is the introduction of FEMS at affiliates such as Daedong Gear and Daedong Metal. FEMS enables real-time monitoring of energy consumption by major equipment and processes at business sites and analyzes abnormal usage patterns. This allows the company to identify potential sources of energy waste in advance. Daedong explained that it is moving away from the traditional equipment unit management method and is transitioning to a data-driven energy management strategy. In the future, based on FEMS data, the company will also be able to manage key energy performance indicators (KPIs), precisely calculate greenhouse gas emissions, and analyze the feasibility of introducing additional renewable energy sources.

Strategies to maximize energy use efficiency?such as power peak management, equipment operation optimization, and expanding the application of high-efficiency equipment?are already being realized as tangible greenhouse gas reduction results at Daedong. Last year, the company achieved a reduction of approximately 12.6% compared to the previous year. Daedong explained that this result exceeded the targeted reduction amount by about 11.1%.

Daedong Metal, which operates in a high carbon-emitting industry, also succeeded in reducing its greenhouse gas emissions by 20.1% last year compared to the previous year by actively utilizing solar power generation facilities. Daedong plans to secure environmental impact data for its entire product lineup and establish a foundation for strategic improvements by 2030, gradually expanding the range of items subject to evaluation. Through these efforts, the company aims to provide transparent data to customers and stakeholders and strengthen its competitiveness in eco-friendly products.

Meanwhile, this report covers the ESG management performance and goals of Daedong and its group affiliates, including Daedong Mobility, Daedong Gear, and Daedong Metal. It is the second ESG report published by the company, following the first-ever report released last year since its founding. Kwon Kijae, Head of Group Management at Daedong, stated, "This ESG report is the result of the group’s ESG management activities over the past year, reflecting global standards and incorporating more advanced ESG strategies and achievements. We will continue to strengthen ESG management and lead the way in sustainable future agriculture by establishing a product life cycle assessment (LCA) system and more."