Annual Greenhouse Gas Reduction of 2,300 Tons
Transition to 100% Renewable Energy at All Business Sites by 2040
Hyundai Glovis announced on July 3 that it has signed a long-term renewable energy supply contract totaling 127 GWh with Hyundai Engineering & Construction, a power brokerage company. This amount of electricity is equivalent to the annual usage of approximately 35,000 households, based on the average annual consumption of a family of four (3,600 kWh).
The contract is structured as a Virtual Power Purchase Agreement (VPPA). A VPPA is one of the implementation measures for "RE100," which aims to use 100% renewable energy for electricity consumption. It is an indirect investment method for expanding renewable energy infrastructure and is widely used in the United States and Europe.
Under this agreement, Hyundai Glovis commissions Hyundai Engineering & Construction, the intermediary, to produce renewable energy. Hyundai Engineering & Construction then encourages power generation companies to produce electricity. The electricity generated by these companies through solar power is recognized as Hyundai Glovis's renewable energy usage under the supervision of regulatory authorities.
Through the renewable energy certificates obtained from this contract, Hyundai Glovis will be able to convert the electricity used at its business sites to renewable energy. The company plans to sequentially apply the secured renewable energy to its business sites nationwide.
When converted to carbon dioxide equivalent (CO2eq), the renewable energy secured by Hyundai Glovis is expected to reduce greenhouse gas emissions by 2,300 tons annually.
In 2023, Hyundai Glovis released its "Net Zero Special Report," unveiling a roadmap to achieve carbon neutrality by 2045. The plan includes a phased reduction of greenhouse gas emissions and the implementation of carbon neutrality by expanding its eco-friendly portfolio, such as transitioning to renewable energy, improving the energy efficiency of vessels, and introducing zero-carbon vessels and electric and hydrogen trucks. In particular, the company aims to switch 100% of the electricity used at all domestic and overseas business sites to renewable energy by 2040.
A Hyundai Glovis representative stated, "Our overseas subsidiaries in the Americas and Asia are targeting a transition to renewable energy by 2030, while our European and domestic headquarters have set a goal of achieving this by 2040," adding, "All employees share a commitment to environmental responsibility and will sincerely work towards achieving carbon neutrality."
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