Environmental Report 2015
We make your cargo valuable and deliver a better tomorrow.
Environmental Report 2015 About This Report
Purpose of Publication Additional Information
Hyundai Merchant Marine Co., Ltd. practices low carbon Additional information to this report may be obtained from green growth management to contribute to environmental following individual reports, Hyundai Merchant Marine’s preservation and happiness through eco-friendly homepage or other related websites. management. As an environmental report published by Hyundai Merchant Marine, this report is composed to share efforts and results for Hyundai Merchant Marine’s low- Reports carbon & green growth management, and to aim at • Environmental Reports suggesting the will and vision for green management that we • Green-house Gas Inventory Report pursue. • Annual Report
Reporting Period and Scope
The period of this report is from January 1 2014 to Websites December 31 2014, and the data of year 2012 and 2013 is • www.hmm21.com : Homepage used to provide information of comparison and progress with • dart.fss.or.kr : Various public announcements past result. The range of report is activities and results from the places of business in Seoul, Busan, ships and individual terminals and, if necessary, the activities of subsidiary Report Issue Date companies and overseas corporates are included too. • July 2015
Standard of Composition and Verification
This report is composed in reference to GRI(Global Contact Information Reporting Initiative) G3 guideline and Ministry of Maritime Technology Team Environment’s Environmental report guideline. Green-house 63 Jungangdaero, Jung-Gu, Busan 600-711, Korea Gas Emission is in reference to IPCC guideline. Tel : 82-51-461-7060 Fax : 82-51-461-6964 E-Mail : [email protected] Assurance
This report has been reviewed by external environmental management expert for credibility of contents. MISSION
We make your cargo valuable and deliver a better tomorrow.
Make your cargo valuable Deliver a better tomorrow
By providing reliable service locating By providing connection among products customer’s cargo safety to right place at and resources all over the world right timing
Value from right timing Abundance of daily lives Value from right place Economic abundance Value from satisfaction/happiness Abundance of future
VISION
HI 2020 – The Winning & Creating Pioneer
HI 2020 Winning Pioneer Creating Pioneer
• HMM Innovation 2020 • Winning Culture • Creating Culture • Global Top 5 ship Operator in • Global Competitiveness • Value Creator rate of operating profits by 2020 • Sustainable Growth • New Business & Future • High Potential CEO Message 3 Company Overview 5
Green Management Strategy Green Community Green Management Vision and Strategy 11 Natural Ecosystem Conservation Efforts 49 Green Management Organization 13 Management of Eco-Friendly Supply Chain 50 Long-term Roadmap 15 Certifications · Awards 51 Green Environment KPI 16 Green Communication Activities 55 Long-term Greenhouse Gas Reduction Targets 16 Status and Respond to International Environmental 57 Regulation
Green Management System Green Environment System 19 Green Product Responding system to Environmental Accidents 22 Energy Saving Activities 63 Green Environmental Audit 23 Eco-Friendly Technology 69 Green Environment Education 24 Green Technology Research Activities 70 Evaluation of Green Environment Performance 25 External Communication 26 Appendix Reports Index 75
Green Activity & Performance Use of Resources 29 Use of Water 30 Use of Energy 30 Climate Change 31 Use and Emissions of Ozone Depleting Substance 35 Emission of Air Pollutants 36 Greenhouse Gas 37 Management of Water Pollutants 39 Waste Material Emission and Recycling 41 Green Environmental Effects Evaluation 42 Eco-Friendly Transport 44 Toxic Chemicals 46
1 Hyundai Merchant Marine Co., Ltd. Core Value
HMM employees are to be competent, confident and collaboration –oriented.
Confidence
Challenge Passion
Competence Collaboration Employees Leadership Common goal Expertise Communication
CORE VALUE 5C
Customer Society
Customer satisfaction Contribution
Competitive product to community Family-like care to environment Partnership to more ethical society
HMM achieves more than HMM contributes to customer satisfaction by community, environment and competitive product, more ethical society. family-like care and partnership.
2015 Environmental Report 2 CEO Message
Dear valued customers and stakeholders, Thank you for your interest and support for Hyundai Merchant Marine Co., Ltd.
Welcome to HMM!
Since its founding in 1976, HMM has grown to be Furthermore, HMM has declared ‘Green the world’s leading integrated logistics company with Management’ as one of its most important a modern fleet of 130 vessels, a global multi-modal management policies. Improvements in safety, network, an integrated IT system and top-class quality, environment, health and greenhouse gas experts. reduction are the key areas through which we aim to enhance the quality of human life. Our main We take pride in the contribution we have made so activities include investments in eco-friendly far towards the development of international trade, facilities, efficient resource management, recycling as well as towards an export-driven Korean and operational greenhouse gas reduction. economy. I would like to take this opportunity to express my gratitude to your continued support and Our remarkable performance has been achieved interest towards us. Your help and support have through the continued help and support of related been essential ingredients to our success. parties, as well as the dedicated efforts of our company members. HMM is about to leave all its This ‘Environmental Report’ is a record of our efforts difficulties behind and enter into a new era of to reciprocate what we have received from our prosperity. We will change ourselves. We will stay customers and the society, and I am delighted to the Hyundai Way. And we will overcome our share our green management activities and results challenges, armed with creativeness and positive with you. thinking.
“Hyundai Merchant Marine – with the vision statement of ‘HI 2020 – The Winning & Creating Pioneer’ – seeks to perform 5 core values to hold competent, confident and collaborating organization, to provide customer satisfaction and to contribute to community, environment and a more ethical society.
3 Hyundai Merchant Marine Co., Ltd. We know that we cannot earn our customers’ love and trust without taking responsibility as a global citizen, and we know that environmental protection is a crucial part of this responsibility. We will continue to make efforts and grow to become a true leader in integrated logistics. Your love and support will be of great help on our journey forward.
Thank you.
CEO Lee Paik-Hoon Hyundai Merchant Marine Co., Ltd.
2015 Environmental Report 4 Company Overview
We make your cargo valuable and deliver a better tomorrow. Hyundai Merchant Marine Co., ltd. is an integrated logistics company, operating around 130 state-of-the- art vessels. HMM worldwide global service networks, Diverse logistics facilities, leading IT shipping related systems, a professional highly trained staff, and continual effort to provide premiere transportation services.
Diverse transportation services. Beginning with three VLCCs in 1976, HMM has strengthened its competiveness to advance new services such as bulk carrier, tramper, container carrier, and special product carrier. As a result, HMM has a stable business structure that can withstand sector fluctuations by operating diversified businesses.
Top global competitor HMM has formed a global business network with four international head-quarters, 26 subsidiaries, 74 branches, 5 operating terminals and 3 liaison offices. It is highly regarded as one of the world’s top integrated-logistics companies with its targeted market prospects, efficient organization, top personnel, and advanced internet systems.
Main commercial artery and advanced guide point. HMM transports nationally strategic materials such as crude oil, iron ore/coal and diverse special products as well as import/export goods. Earnings are five trillion Korean won per year, clearly playing a major role in Korea as a vital economic artery
Becoming the world`s top integrated logistics company. HMM invests to continuously expand vessel fleet, acquires container terminals in the worldwide primary location and inland logistics facilities, and develops premiere customer oriented IT system. As a result of these endeavors, HMM will become a word top integrated logistics company giving “Hope to shareholders, satisfaction to customers and pride to employees”.
5 Hyundai Merchant Marine Co., Ltd. HMM Europe
St. Petersburg Gothenburg HMM HQ HMM America Rotterdam Hamburg London Tacoma Antwerp Vienna HMM CHINA Le Harve Seoul Irving Genoa Long Beach Shanghai Tokyo
Dubai Hong Kong Taipei Kaohsiung Mumbai Bangkok Ho Chi Minh Klang
Singapore HMM HQ
Regional HQ HMM South East/West Asia Operating Terminals Sydney
Operating Terminals Location Capacity Owned Share Remarks
CUT California 1,200,000 TEU 100%
WUT Washington 1,100,000 TEU 100%
KHT Kaohsiung 800,000 TEU 100%
HPNT Pusan 2,000,000 TEU 50%
RWG Rotterdam 4,250,000 TEU 20% Open in 2015
2015 Environmental Report 6 Fleet Profile
(As of April 30, 2015)
Owned Chartered Total 구 분 No Capacity No Capacity No Capacity
2012 20 120 38 218 58 338
2013 18 107 38 229 56 336 Container 2014 23 173 34 218 57 391
2015(Current) 23 173 34 218 57 391
2012 16 2,388 22 2,883 38 5,271
2013 15 2,088 16 2,320 31 4,408 Wet Bulk 2014 8 1,334 13 1,816 21 3,150
2015(Current) 7 1,228 13 1,817 20 3,045
2012 15 2,213 66 4,742 81 6,955
2013 14 2,013 57 4,092 71 6,105 Dry Bulk 2014 13 1,975 47 3,341 60 5,316
2015(Current) 11 1,624 42 3,101 53 4,725
2012 51 126 177
2013 47 111 158 Total 2014 44 94 138
2015(Current) 41 89 130
※ Unit : Container 1,000 TEU / Wet Bulk 1,000 DWT / Dry Bulk 1,000 DWT ※ ‘Chartered’ include the fleet of over one year charter.
7 Hyundai Merchant Marine Co., Ltd. Economic Performance
Hyundai Merchant Marine recorded KRW 6.272 trillion of revenue in 2014. We will try to create more sustainable growth withstanding market volatility.
Historical Revenue
Historical Operating Income
2015 Environmental Report 8
2015 Environmental Report ■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Management Vision and Strategy
Vision of Hyundai Merchant Marine is ‘HI 2020-The Winning and Creating Pioneer’. Based on this vision, Hyundai Merchant Marine systematically manages the performances by establishing big strategic tasks of responding to climate change, the improvement of energy efficiency, responding to interested parties and the development of green ship technology. Hyundai Merchant Marine develops and runs various programs to improve the employees’ awareness of eco-friendliness. This effort will result in the improvement of fuel efficiency and the realization of ‘green company’ which ultimately enhances global community’s happiness.
Vision and Strategic system Green Management Strategy
Actively participate in Mission We make your cargo valuable and delivery a better tomorrow. setting of global policy direction Vision “HI 2020 – The Winning & Creating Pioneer” Communication and share for common interest and cooperation
Contribute to Environmental value aimed by vision greenhouse gas Continuous development of logistics solutions that minimize the impact on global Eco System through reduction through green technology innovation eco-friendly management activities “Green Doings Bring Green Rewards”
Strategic tasks
Responding Improvement Responding Development of Secure green leadership Image to climate of energy to interested green ship in overall industry improvement change efficiency persons technology
Medium & long Participate in Intensify foreign Participate in term greenhouse Build new value initiative policy activities R&D creation basis gas reduction
•Respond to environment/GHG •Energy management system •Stakeholder response •Green ship technology •IMO Conference •Energy efficiency •Publish GRI report •Results utilizing/ •Submit international agenda improvement facility •Publish Environmental Report commercialization •Corresponding emissions •Develop analysis tools •GHG inventory report •Expand research facility, trading •Certify new shipbuilding EEDI •Participate in CDP manpower· •Participate in goal •Reduce Green-house gas •Technical consulting •Expand participation in R & D management system 17% compared with 2008 until •ESI, CSI, CCWG •Build eco-friendly ship •Prepare ship recycling 2015 •GHG Forum, Seminars •Develop green growth convention •GRI report business •Carbon asset management •Green company certification •Green certification system
11 Hyundai Merchant Marine Co., Ltd. ■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Proactive Participation in Policy making Hyundai Merchant Marine participates in domestic and overseas meetings in relation to shipping industry’s reaction to climate change and environmental protection. We promote various activities like establishing greenhouse gas management system, green office and educational courses. Furthermore, we are currently working on emission trading system, energy management system(government-led), green company certification and green technology certification system. These trend will eventually lead us to the development of carbon assets Climate change management system. counteracting strategic roadmap
GHG emission Reduction Build green-house gas inventory Hyundai Merchant Marine analyzes greenhouse gas emission from business activities by utilizing real-time Greenhouse Gas Management System(GEEMS). We try to improve ship’s energy efficiency by applying various improving technology to all ships. We set the goal of 30% Analyze reduction greenhouse gas emission reduction by 2020 based on 2008 performance. The company goal and potential amount promotes operational optimization with the installation of on-board Energy Efficiency Monitoring System(EEMS)
Introduce emissions trading External Activities Hyundai Merchant Marine tries to care general public by publishing environmental reports, greenhouse gas inventory reports and booklets on environmental protection. We will expand our Enter into carbon activities by actively participating in green management forums and seminars domestic and market overseas. The programs include CDP, ESI, CSI and CCWG.
Participation in R&D We jointly conduct R&D with government, equipment suppliers, academic institutions and research centers on green ship technology development. Remarkable progress has been made in retro-fit technologies such as bulbous bow modification and EEMS. We are going to meet government’s low-carbon green growth guideline by reducing greenhouse gas emission.
2015 Environmental Report 12 ■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Management Organization
Hyundai Merchant Marine has ‘Green Environment Safety Committee’ headed by CEO to set medium & long-term goals for green management, and periodically evaluates the performance. Green Environment Safety Committee has sub committees composed of newbuilding, operation, IT and environment experts. In addition to the Committee, Green Management Working Group is working on technical issues which need inter-departmental collaboration.
Role of Organization
Organization Main Roles
• Determine entire company green environment safety policy and strategy • Study relevant facilities and investment direction to improve green environment and health & safety quality
Green Environment • Review appropriateness of green environment and health & safety Safety Committee quality management system • Set approval and result analysis/measure of green environment plan/health safety plan/quality plan • Set comprehensive measure for ship’s safe sailing and prevention of accidents • Develop policy to prevent accidents • Determine excellent ships • Deliberate bills introduced by each ship group’s working committee
• Respond to global environmental issue Green • Review new green business Management • Study eco-friendly logistics strategy Working Group • Respond to shippers and interested persons
• Execute green environment safety committee upon each ship management group’s feature Working committee • Discuss, determine environment safety main issues in each ship • Share green management excellent cases and pursue sustainable development management group • Analyze and respond domestic & overseas environment safety trend
Ship Green • Set practice plan for green environment management and prevention of accidents Environment • Set safety measure for identified risks Safety Committee • Set plans for emergency practice, environment protection and safety training
13 Hyundai Merchant Marine Co., Ltd. 2015 Environmental Report 14 ■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Long-term Roadmap
Hyundai Merchant Marine established green management policy to become front runner in global green management area, and tries to grow as eco friendly company by executing medium & long-term green environment strategy and detailed promotion tasks according to this policy.
Green Management Policy
HMM acknowledges the company’s own risks and opportunities in regard to the climate change, and tries to eliminate the risks by implementing green management.
• Disclose the transparent GHG report and help customer`s sustainability • Strictly follow the domestic and/or overseas regulations and keep improving performances • Response against the climate change by Environmental-friendly investment • Create the Environmentally sound and sustainable green growth • Strengthen the partnership to improve green management acknowledgement and ability
Promotion Direction
Introduction Development Growth Maturity 1996~2009 2010~2012 2013~2015 2016~
• Acquire ISO14001 • GEEMS • Green Ship • Emissions trading • Waste material • GMS • Review CDM • Participate in CDM control • Set medium & long-term • Expand R&D • Green growth new • Environment goal participation business program • EEOI / EEDI • Establish reduction • Carbon assets • No oil spill • SEEMP goal management • SOPEP • Verify fuel efficiency • Prepare SRC
15 Hyundai Merchant Marine Co., Ltd. ■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment KPI
Hyundai Merchant Marine achieved the internal Green Management KPI target which is more improved than in 2014. The KPI is measuring the reduction of pollutants, recycling rate and so on. We believe the KPI is quite effective in promoting the execution of green management policy.
Ships
Division KPI
Green-house gas, SOx, NOx, Ozone depletion material, VOCs, Exhaust Air pollution gas/soot/dust
Water No oil spill, Use anti-fouling paint, Ballast Water, Gray Water, Sewage pollution
Waste Waste oil, plastic, garbage, food waste control
Resource Reduction oil use, synthetic detergent, disposable paper cup, water control
Award Environment excellent ships, Green Ship, Green Flag program
Inland (Offices)
Division KPI
Operational Amount of use of oil for vehicles, Paper usage, Greenhouse gas emission resource
Long-term Greenhouse Gas Reduction Targets
Hyundai Merchant Marine has been calculating base emission factor by each type of vessel. We set the medium & long-term greenhouse gas reduction target, considering the past emission results for existing ships and IMO EEDI Reference for newly built ships. Consistent efforts will be made to reduce the GHG emission up to 30% based on 2008 record by 2020.
Unit : g/Ton·Km
Result Plan
Year 08Y 09Y 10Y 11Y 12Y 13Y 14Y 15Y 16Y 17Y 18Y 19Y 2020Y
Emission/ship 5.0 4.6 4.3 4.6 4.4 4.3 4.2 4.1 4.0 3.9 3.8 3.7 3.5
Website for the results and goals :
http://www.hmm21.com/cms/company/korn/introduce/ism/plan/index.jsp
2015 Environmental Report 16
2015 Environmental Report □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environmental System
Hyundai Merchant Marine participates in global environmental protection activities to achieve customer satisfaction through increasing the level of green environment, health safety and transportation service quality.
Green Environment, Health & Safety, Quality
Hyundai Merchant Marine aims at world’s top-class logistics company by improving employees’ working condition, promoting activities to preserve natural environment, and minimizing the negative impact to environment.
Green Environment • Apply eco-friendly policy, and environmentally sound and sustainable development principle • Observe laws and prevent pollution • 3R Campaign: Reduce, Reuse, Recycle
Safety / Health • Secure safety practice and safe working condition for ships • Prevent accidents by risk management • Consistent improvement of health & safety condition
Quality • Realize customer satisfaction • Improvement of service and operational efficiency
Top management`s Appropriate resource Participation of overall involvement arrangement employees
Clear definition and documentation of Emergency response Consistent improvement responsibility, right and plan mutual relationship
19 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment System
Hyundai Merchant Marine’s ESQS(HMM-ESQS) is green environment and safety quality management system. This system has been made by integrating ISO 14001(EMS), ISM CODE(SMS), ISO 9001(QMS) OHSAS 1800Q, GMS, ISO 50001 to secure the environment protection and high quality service. These systemic approach will enhance the level of green environment, safety/health and quality management.
Integrated Management System
ISO 14001 + ISM CODE + ISO 9001 + OHSAS 18001 + GMS + ISO 50001
Occupational GHG, Energy, Health & Safety Resources & Social OHSAS Management Responsibility System ISO9001 ISO 50001 Quality Management GMS QMS System Integrated Management System
ISO 14001 ISM CODE Environmental Safety Management EMS SMS Management System System
• EMS : ISO 14001, Environmental Management System • SMS : ISM Code, Safety Management System • QMS : ISO 9001, Quality Management System • OHSAS : Occupational Health & Safety Management System • GMS : GHG, Energy, Resources & Social Responsibility
2015 Environmental Report 20 □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment Plan
Hyundai Merchant Marine has announced the green environmental management policy and has implemented the green environmental plan to reach the goal.
Core Management Factors
• Reduce CO2 emission • Reduce NOX emission • Reduce SOX emission • Reduce VOCS emission • Reduce ozone depletion material • Reduce exhaust/soot/dust Air Pollution emission
• Use fuel oil • Chemicals control • Power consumption • Ballast control • Energy use amount • Heavy water/waste • Waste oil water/bilge water • Synthetic detergent Core Management control • Plastic Factors • Prevent oil pollution • Foods • Anti-fouling paint • Garbage Resource and Marine Waste Manage ment Pollution
21 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Responding System to Environmental Accidents
Hyundai Merchant Marine focuses on avoiding accidents by analyzing potential risks of all environmental accidents and maintains 24-hours monitoring system. Prompt reporting, quick response, ship-shore collaboration will minimize the resulting losses from unwanted accidents. Members of emergency response team is composed of experts in various special fields and utilizes a full scale professional skills.
Emergency Counteracting Organization
CEO
Director Consultant of emergency response team(ERT)
Emergency On-scene Action Team Response team(ERT)
Ships
Role of Each Organization
Organization Main Roles
• Direct emergency response team and operate on scene action team • Set/perform emergency responding measure • Set/execute life/ships/cargo’s damage and environmental pollution minimizing Director of ERT plan • Report handling status and results to management • Other necessary matters for handling emergency situation
• Central communication Emergency • Planning ship’s seaworthiness and life safety measure Response • Close liaison with external salvage institutions Team • Work coordination toward government office and authorities
On-scene • Control the on-scene situation Action • Direct ship salvage/cleanup operation on site Team • Other necessary matters for site affairs
2015 Environmental Report 22 □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment Audit
Hyundai Merchant Marine performs regular internal audit at least once a year to ensure effective implementation of green environment·safety·health management system. A temporary audit is arranged as the situation requires.
Qualified auditors are selected according to company rules, and they are regularly re-trained for upgrade through self and commissioned programs.
And green environment·safety·health internal audit is performed to both offices and ships to verify whether the procedures are duly abided by from both sides. The problems observed by auditors are immediately corrected to guarantee environmentally-friendly management.
23 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment Education
Hyundai Merchant Marine makes sure the compliance to the environmental laws through continuous education, checking and monitoring of the green environment laws, and provide employees with education & training programs to improve awareness of the green management.
Curriculum and Completion Status
2013 2014 2015 (Plan) Category Participation Participation Participation Hours Hours Hours (person) (person) (person)
Green-house gas - - 865 1,730 890 1,780
Environmental issue self-Study - - 865 1,730 890 1,780
Captain/chief engineer RC 62 992 - - 70 1,120
First Officer RC 46 368 15 360 15 360
Onboard Training 692 8,304 431 5,172 431 5,172
I I e r n t n a l Ship administrator(Captain) 4 64 3 48 3 48
Ship administrator(C/engineer) 4 64 3 48 3 48
Ship administrator PDOS 187 1,496 164 1,312 164 1,312
First Officer PDOS 182 1,456 136 1,088 136 1,088
IMDG CODE 27 432 29 464 29 464
Electronic engine 8 64 48 1,288 48 1,288
MARPOL I 30 480 30 480 30 480
C C o m MARPOL II 0 0 - - 10 160 m
18 344 14 288 14 288
I I s Contamination prevention Manager
s
I I o n e d CDP training 0 0 - - 2 16
Shipping industry & green growth - - - - 1 16
GMS internal examiner training - - 3 30 3 30
Total 1,260 14,064 2606 14038 2,739 15,450
Total number of members 1,556 1,296 1,300
Performance Indicators 9.0 10.8 11.8
. Performance Indicators = (Annual training hours)/(Total number of members) . 2015Y : Plan
2015 Environmental Report 24 □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Evaluation of Green Environment Performance
Hyundai Merchant Marine continuously improves the green environment activities by applying evaluation indicators.
Evaluation Index
Management Performance Indicator Operational Performance Indicator
Green Management Goal establishment Energy Consumption
Green Management Goal achievement Energy Consumption unit(ship)(unit: MJ/ton·miles)
Green Purchase % for MRO product Energy Consumption unit(inland)(unit: MJ/person)
Green Purchase % for raw & subsidiary material Direct green-house gas emission(unit: tCO2 eq)
Green Product investment % Direct green-house gas emission unit(ship)(unit: g/ton·miles)
Green Product % Direct green-house gas emission(inland) (unit: t/person)
Green Product Sales % Indirect green-house gas emission(unit: tCO2 eq)
Training Time Indirect green-house gas emission(unit: t/person)
Opinion and Objection Water consumption amount
Business place law violation Water consumption amount unit
Product supply law violation Raw & subsidiary material use amount unit improve %
Green Management results disclosure cycle Waste material accrual unit (waste oil)
Green Process Investment % Waste material accrual unit (plastic)
Waste material recycling rate
Air contaminant emission unit (SOx) (unit: g/ton·miles)
Air contaminant emission unit (NOx) (unit: g/ton·miles)
Air contaminant emission unit (PM) (unit: g/ton·mile
Toxic chemicals use amount unit
25 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
External Communication
Carbon Disclosure Project
Hyundai Merchant Marine has participated in carbon information disclosure project(CDP) to recognize responsibility for climate change and to lead in protecting global environment by reporting transparent states since 2009. CDP is a project with which global financial institutions examine climate change related opportunities and risks and reflect in customer evaluation. In 2014, 767 global financial institutions with assets of 92 trillion dollars has signed the agreement. As a result of active participation, Hyundai Merchant Marine was awarded with Carbon Management Industry Leader Prize from CDP Korea committee in 2014, 4 years in a row.
CDP 2014 Korea 250 Report website address : http://www.kosif.org/board/bbs/board.php?bo_table=cdp_05&wr_id=126
Carbon Management Industry Leaders
Industry Companies
Hyundai Engineering & Construction Industrial goods Samsung C&T Corp.
Transportation Hyundai Merchant Marine
Finance(banks) IBK, Shinhan Financing Holdings
Samsung Fire Insurance Finance(non-banks) Hyundai Marine & Fire Insurance
Raw materials POSCO, Hyundai Steel, Hankook Tire
Optional consumables LG Electronics, Coway, Hyundai Motors
Amore Pacific Group, LG Household & Health Essential consumables Care
Samsung SDI, Samsung Electricity, Samsung IT industry Electronics
Communication LG U+, KT
Energy·Utility Korea District Heating Corp., S-Oil
Pharmaceutical health LG Life Sciences
2015 Environmental Report 26
2015 Environmental Report □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Use of Resources
Hyundai Merchant Marine consumes significant amount of MRO products and raw materials in relation to its fleet operation. To reduce the negative impact on environment, HMM controls the use of resources, and gradually increase the use of certified green product.
MRO Product
In 2014, total cost of MRO products were decreased by 10% comparing with 2013. HMM plans to increase the amount of green product purchase in 2015.
(Unit : mill. USD)
Year 2010 2011 2012 2013 2014 MRO product cost 18 24 31 27.8 25 Green product purchase among MRO product 0.95 0.48 1.79 1.10 0.3 Purchase percentage of MRO green product 5.2 2.0 5.8 4.0 1.2
Raw Materials
Raw material includes fuel oil consumed by vessels. In 2014, purchase ratio of green product was increased by 6.7%. HMM plans to increase the purchase of green products by using eco-friendly fuel.
(Unit : mill. USD)
Year 2010 2011 2012 2013 2014 Raw & subsidiary materials purchase 1,337 1,599 1,717 1,247 934
Green product purchase among Raw & 22.1 26.3 74.9 82.4 62.7 subsidiary materials Purchase of green product(MT) 43,513 37,295 98,688 117,271 94,178 Purchase percentage green product(%) 1.65 1.64 4.36 6.6 6.7
29 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Use of Water
It is unavoidable that Hyundai Merchant Marine consumes significant amount of water for the purpose of machinery cooling and human consumption. HMM strives to reduce environmental impact by restraining supplying water from shore and using distilled water onboard ship.
(Unit : 1,000 ton)
Year 2010 2011 2012 2013 2014 Water supply and evaporation 215 222 230 226 156 Water consumption 210 221 228 222 153 Consumption/(Supply & Evaporation) 97.6 99.5 99.1 98.2 98.1
Use of Energy
Ninety nine percent of energy consumed by Hyundai Merchant Marine is borne by ships. Considering the magnitude of cost and environmental impact, HMM has conducted several campaign to enhance fuel efficiency for several years. HMM recorded further reduction of energy consumption in 2014 over 2013. Energy efficiency per ship was also improved to provide transportation services more efficiently.
Ships (Unit : TJ) Division 2010 2011 2012 2013 2014 Heavy Fuel Oil 99,969 93,629 101,523 79,703 66,605 Marine Diesel Oil 1,345 1,081 1,259 893 1,042 Total 101,314 94,710 102,782 80,596 67,646
Inland (Unit : TJ)
Division 2010 2011 2012 2013 2014 Diesel 0.2005 0.2077 0.2628 0.3489 0.3327 Electricity 158 198 228 246 245 Gasoline 0.0198 0.0146 0.0242 0.0332 0.0315 LNG 0.0158 0.0210 0.0202 0.0210 0.0208 Total 158.6 197.8 227.8 246.7 245.1
• Employees in 2010 : 930 / Employees in 2011 : 936 / Employees in 2012 : 927 / Employees in 2013 : 864 / Employees in 2014 : 865
2015 Environmental Report 30 □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Climate Change
In November 2014, UNFCCC 20th meeting was held in Lima, Peru. Even though the conference was recorded as one of the most difficult meetings ever, all the world recognizes that we must do something more to slow down climate change. In this regard, Hyundai Merchant Marine, meeting global standard, have been working on reducing greenhouse gas emission from ships, terminals and entire business place. Though many people conceive that Climate Change Convention imposes significant risk to company operation, Hyundai Merchant Marine believes that the change would make more opportunities if the company carry out eco-friendly business in advance.
Activities to Counteract Climate Change
Date Details
09.2010 Climate change policy advisory group activities
10.2010 Established greenhouse gas inventory
10.2010 Invented supply chain carbon calculator
12.2010 Published Ship Energy Efficiency Management Plan
03.2011 Published greenhouse gas emission booklet
06.2011 Incorporated Green Management System first in shipping companies
06.2011 Participated in ship lifecycle management system development in Ministry of Knowledge & Economy
09.2011 Cooperative companies’ greenhouse gas management system building consulting
10.2011 Participated in building of green ship TCS system in Ministry of Land, Transport and Maritime Affairs.
10.2011 Awarded ‘Carbon Management Industry leader prize’ in CDP industrial goods transport
11.2011 Green ship presentation at ‘SIMS 2011’
12.2011 Awarded prize of minister of Land, Transport and Maritime Affairs
05.2012 CSI and CCWG Environment Performance Verification
08.2012 M/V Pacific Pride Certified as Green Ship by KR
10.2012 Awarded with Prize for Carbon Management Industry Leader
03.2013 Conducted modification of bulbous bow of containerships first in Korea
04.2013 Received verification of GHG Inventory as well as CCWG Environment Performance
31 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Date Details
07.2013 Developed Energy Efficiency Monitoring System
10.2013 Launched GHG emission tracking service for cargoes as well as customer basis
10.2013 Awarded prize for Carbon Management Industry Leader from CDP Korea 3 years in a row
05.2014 Received verification of GHG Inventory as well as CCWG Environment Performance
10.2014 Awarded prize for Carbon Management Industry Leader from CDP Korea 4 years in a row
Greenhouse Gas Management System
To respond to climate change, Hyundai Merchant Marine performs various activities. With long track record of controlling greenhouse gas emission from ships, HMM setup green management task force team to take proactive actions in 2010. The task force team is composed of experts in ships, terminals and logistics. They developed Green Energy Efficiency Management System(GEEMS) which contains GHG Inventory, Supply Chain Carbon Calculator, EEOI/EEDI Calculator and SEEMP modules.
GHG Inventory
With the establishment of GHG Inventory, Hyundai Merchant Marine monitors all sources of direct greenhouse gas emitted from the engine combustion, terminals and company buildings as well as indirect emission from electricity use. Furthermore HMM monitors air pollutants emission e.g. NOx, SOx and particulate matter. As real time monitoring is available, HMM executes GHG reduction activities to reach the reduction target. The GHG Inventory is verified by 3rd parties each year for its appropriate calculation with international standard e.g. ISO 14064, IPCC 2006 Guideline, and for transparent communication with internal/external stakeholders.
2015 Environmental Report 32 □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Supply Chain Carbon Calculator
Supply Chain Carbon Calculator is developed to provide carbon footprint for customers from door to door. It is easy to count the emission by inputting departure, destination and cargo quantity on company’s homepage. Supply Chain Carbon Calculator is developed applying CCWG methodology, but credibility is improved by using HMM’s own emission factor.
• Supply Chain Carbon Calculator ‘s website address : http://geems.hmm21.com/Calculator/Calculator.aspx
EEDI Calculator
Energy Efficiency Design Index is the index which shows fuel efficiency for new ships. As it has become mandatory since 2013, after hard negotiation at IMO MEPC 62, EEDI will determine the value of ship from delivery to ship recycling phase. Considering the importance of EEDI, Hyundai Merchant Marine developed the system which is able to calculate existing ship’s EEDI for reference. HMM understands that EEDI calculator is useful in analyzing the ship’s operating efficiency compared with design efficiency.
33 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
EEOI Calculator
Energy Efficiency Operational Indicator is the index of ship`s energy efficiency for existing ships. It was recommended by IMO MEPC. Hyundai Merchant Marine has invented its own EEOI Calculation System to evaluate the energy efficiency for HMM fleet.
SEEMP
SEEMP is management guidance for ship operating parties to increase ship’s energy efficiency, as it contains various energy saving practices. As a front runner in innovative shipping, Hyundai Merchant Marine has already developed SEEMP, which includes various greenhouse reduction methods and techniques. The company continuously performs activities to reduce greenhouse through so-called PDCA(Plan-Do-Check-Action) cycle that sets each ship’s reduction goal, measures the performances and adjust the control values.
2015 Environmental Report 34 □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Use and Emissions of Ozone Depleting Substance
Ozone Layer Ships use various refrigerants in freezers, air-conditioning units, unit-coolers and refrigerated Destruction Materials containers. As it has been known that refrigerant can cause ozone depletion, Hyundai Merchant Marine has enlisted them since 2010 and reduced consumption. For some ships, the company has made efforts to recycle the refrigerant by collecting refrigerant and to use alternative ones by retrofitting.
(Unit : ㎏)
Year 2010 2011 2012 2013 2014 Ozone Depleting Substance 2,622 2,846 1,702 2,132 790
Refrigerant Restriction Status
Ozone Depletion Refri Restriction Substance Record Remarks gerant IMO EU Others
• MARPOL Annex VI • EU Directive 05/2009 • Montreal Protocol - Prohibit willful - Check leak on EU port - Limit R22 discharge call production Ozone (allow minimum) - Require prior approval (till2010.1.1) Depletion R-22 - Control available upon refrigerant shipping - Limit shipping upon substance for leakage - Ban on use after 2015.1.1 Europe call ship (HCFC) - Maintain ODS record • Each country’s restriction
• No restriction • EU Directive 40/2006 • Climate change - Discussion on - Car-use refrigerant convention greenhouse gas . Limited in 2011 - Restrict as one of restriction is . Prohibited full in 6 big greenhouse R-134a under way, but 2017 gases(EU-ETS not Green R-404a only CO2 is (replace with R-744a) included) house gas R-417a being discussed - Discussing on expansion - Acknowledge (HFC) to other industry collection technology CDM
• Each country is discussing restriction
35 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Emission of Air Pollutants
Management of NOx Emission
Hyundai Merchant Marine has made efforts to reduce Nox emission by changing fuel-injection valve AMP System to Sliding Type and by installing engine control device to increase fuel efficiency. The company has devised Alternative Maritime Power system for US calling ships to restrain in-port fuel oil consumption. (Unit : ton) Year 2010 2011 2012 2013 2014 NOx emission 213,206 199,332 216,311 169,630 142,336
Management of SOx Emission
Hyundai Merchant Marine has more strict policy for fuel oil quality in accordance with IMO, EU and US regulations. The company keeps compliance to sulfur contents regulations.
(Unit : ton)
Year 2010 2011 2012 2013 2014 SOx emission 134,075 125,531 136,135 106,854 89,362
Management of PM Emission
The International Maritime Organization is making progress in legalizing PM emissions from the vessel. Even though it isn’t adopted yet, HMM manages the PM emission as well.
(Unit : ton)
Year 2010 2011 2012 2013 2014 PM emission 16,631 15,572 16,887 13,255 11,084
• PM : Particulate Matter
Management of Vapor Emission
Hyundai Merchant Marine has installed Vapor Emission Control System(VECS) to avoid volatile air emission from oil tankers.
2015 Environmental Report 36 □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Greenhouse gas
Hyundai Merchant Marine has proactively prepared for the system of GHG emission reduction to respond to climate change as it has been continuously requested by international society. To this purpose, GEEMS(Green Energy Efficiency Management System) was devised in 2010 and verified by 3rd parties, which shows that HMM’s progress towards green environment is getting more complete.
Scope of Verification
. Organizational Boundaries : Hyundai Merchant marine CO., Ltd . Operational Boundaries : Scope 1(Direct GHG Emissions) – Stationary combustion of the building, terminal and mobile combustion of ships and vehicles. Scope 2(Indirect GHG Emissions)) – Electricity usage of the building and terminal
Verification Approach
. KS Q ISO 14064-1:2006 . KS Q ISO 14064-3:2006 . GHG Protocol(WBCSD/WRI, 2004)
Greenhouse Gases
. CO2
. CH4
. N2O
GHG emission
(Unit : tCO2-eq) Category 2010 2011 2012 2013 2014
Scope 1(Direct GHG Emissions) 7,906,897 7,393,184 8,026,113 6,303,853 5,314,633
Scope 2(Direct GHG Emissions) 18,702 24,162 26,615 27,758 28,449
Waste oil recycling 0 6,751 6,483 5,203 4,097 Total GHG emission 7,925,599 7,410,595 8,046,245 6,326,408 5,338,985
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2015 Environmental Report 38 □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Management of Water Pollutants
Ballast Water Management
While ballast water is essential for safe and efficient shipping operation, it may pose serious ecological, economic and health threat due to a multitude of marine species carried in ships’ ballast tank. To prevent this marine eco-system disturbance Hyundai Merchant Marine exchanges ballast water thoroughly in deep ocean, or uses ballast water treatment system in port with ballast water management plan. The ballast water treatment system becomes important equipment for ships’ operation, and the company has allowed equipment manufacturers several container ships as test- bed to test them fully before commercialization.
CASE Ⅰ
CASE Ⅱ
Bilge Management
Hyundai Merchant Marine has installed bilge oil treatment system for all ships and monitors the oil contents level down to 15 ppm.
39 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Management of Gray Water and Sewage
Hyundai Merchant Marine treats ships’ sewage by disposal device and puts in holding tanks. HMM strictly comply to grey water regulation of U.S Vessel General Permit by installing dedicated holding tanks.
Status of Restriction on Gray Water and Sewage
Status of Restriction Division Remarks IMO USA
• No special restriction on Gray • Minimize emission of EPA 2008 Water VGP (but, prohibit emission in Great Lakes)
• Special condition • EPA has strengthened monitoring - New York: Ban on all Gray Water of Gray Water for all ships
Gray emission within 3miles after Water 2012.1.1(grace period available) - Connecticut: Ban on untreated Gray Water emission after 2012.1.1(grace period available) - Massachusetts: Ban on untreated Gray Water emission - Michigan: Ban on emission
• Ban on emission within • Ban on untreated sewage emission 12miles from near inland within 3miles from coast by U.S Federal law
Sewage • Special condition • Each state’s special condition - Baltic Sea: Ban on - California: Ban on all sewage emission limited to liner emission within 3miles from coast after 2012.3.28
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Waste Material Emission and Recycling
Plastic Waste
Plastic Landing As plastic incineration is strictly prohibited onboard ship in accordance with 73/38 MARPOL regulation, Hyundai Merchant Marine had recycled entire plastic waste in 2014. For other kinds of wastes, HMM prohibits using incinerator during coastal navigation or anchoring.
Plastic Compressor
Plastic Compressor To minimize plastic waste Hyundai Merchant Marine strives to reduce plastic packing upon supply of food and parts. The company has distributed plastic compressor for easy storage.
Recycling of Waste Oil
Hyundai Merchant Marine reuses drain oil by cleaning again. The company treats the sludge by landing to certified subcontractor ashore.
Division 2011 2012 2013 2014
Waste oil landing Total amount(CBM) 11,569 12,630 12,449 10,256
Waste oil landing domestic amount(CBM) 7,818 7,381 6750 6,166
Waste water amount(CBM) 1,458 1,291 1,614 1,617
Waste material landing amount(CBM) 301 323 550 496
Recycling oil amount(CBM) 2,525 2,423 1,946 1,526
Recycling percent(%) 32.3 32.8 32.2 29.5
41 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Green Environment Effects Evaluation
Hyundai Merchant Marine has set ‘Green environment goal, sub objectives and detailed programs’ and has tried to execute green environment policy minimizing the environmental impact from the company`s activities and services.
Evaluation Method
HMM performs evaluation according to the Standard of Green Environment Effect. In case more than 2 areas of green environment effect is identified, HMM evaluates green environment effects for each area.
Evaluation Cycle
HMM performs regular evaluation for green environment effect early December each year. And if each of the followings is identified, the company executes irregular evaluation.
• New installation or change of domestic & overseas environment-related laws’ restriction • Change of Group and Company’s environmental policy • Emergency situation • Main complaints of interested parties like customers, country, ship classification and other maritime affairs related groups • Facility investment, ship alteration, used ship’s introduction (anti-pollution facility)
Green Environment Effect Area
HMM identifies following areas which influence on environment.
• Waste materials(limited to solid waste materials) Sludge and solid which may pollute environment in process of disposal, useless, unnecessary or surplus cargo, repair, sailing and garbage(except sewage).
• Air emission Air emission from ships’ sailing, cargo transport, container-transport use equipment, vehicles and office air-conditioning/heating.
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• Discharge to water Discharge of waste water to sea or neighboring waters under control/non-control by sea water ballast, boiler water, gray water, dish water, oil water below 15ppm, sewage treatment upon ship sailing and office operation.
• Noise/vibration Over standard noise due to use of noisy equipment, vehicles and other objects.
• Consumption of resources Direct/Indirect resource consumption e.g. fuel oil, cleaning water, natural gas, ship-use supplies/parts, cargo fixing materials, equipment and parts.
• Energy consumption Power consumption
• Others Factors which may affect environment e.g. working condition, health & safety such as lighting, odor, dust, mote, toxic gas, hazardous material leak.
43 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Eco-Friendly Transport Hyundai Merchant Marine promotes harbor-side green management. It achieved outstanding reduction of terminals’ fuel oil use by converting it from engine-drive type which utilizes fossil fuel to electricity-drive type upon the introduction of Yard Automated Transfer Crane(ATC) We save about 5% of electricity bills by installing photovoltaic system on roofs of terminal gates.
Eco-Friendly Terminals
Hyundai Merchant Marine runs 4 self-supporting terminals in Korea, Taiwan, U.S, and is about to open Europe Terminal in 2015. Terminals operated by Hyundai Merchant Marine try not only for operation efficiency and costs saving but also reduction of greenhouse gas, being equipped with best road feeder service facilities.
Automated Transfer Crane Automated Transfer Crane
The existing container-transport crane was operated manually. But, Automated Transfer Crane automatically controls several cranes at central control room. This greatly contributes to saving energy while raising operation efficiency and preventing human errors.
Tandem Crane Tandem Crane Existing container unloading cranes could operate only one container respectively. Tandem cranes not only increase operation efficiency but also reduce energy use amount in half by lifting 2 40ft containers at once.
Solar Energy Photovoltaic System Solar battery modules are installed in every corner of terminals. In case of Pusan New harbor, 5% of entire electricity use is based on eco-friendly energy like photovoltaic system.
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Container automatic identifying device
OCR(Optical Character Recognition), RFID(Radio Frequency Identification), RDT(Radio Data Transfer) are all automatic container identifying devices. They automatically chase location of container, moving path in container yard and transmit this to central control room. This increases operational efficiency and save energy as it can minimize container’s moving.
Radio Frequency Identification Optical Character Recognition
Radio Frequency Identification Radio Data Transfer
AMP(Alternative Marine Power) System
AMP System Electricity is produced by ship’s generator when the ship comes alongside the pier. Ship’s generator consumes fossil fuel, discharging large amount of SOx, NOx and greenhouse gas, becoming many social problems. Hyundai Merchant Marine has plan of medium & long-term AMP installation. AMP is facility to reduce air pollution with supplying electricity to ships in port without operating ship’s generator. Besides, various unloading equipment which being operated by diesel engine in terminals also are replaced with LNG engine or electricity-driven facilities. And it sharply reduces greenhouse gas emission by transporting large amount through railroad into inside terminals.
45 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Toxic Chemicals
Eco-Friendly Paint and Chemical
As ship paint prevents marine creatures from attaching, the paint used for the outside of hull has Eco-Friendly Paint and Chemical a harmful influence not only on attached creatures but also other creatures in ocean. Thus, Hyundai Merchant Marine applies eco-friendly anti-fouling paints to the vessel. And for chemicals used when removing various scales and carbonized oil on ship’s equipment, we use eco-friendly chemicals.
Eco-Friendly Paint Division 2010 2011 2012 2013 2014
Tin Free Paint painting(ship) 18 13 21 20 13
Eco-Friendly Chemicals
Enviromate 2000 ST-100L RR-PTL Drewclean 2000 RR-101A WSR-FW SNC 2000 ST-400P WSR-MU Drewfresh 2000 Gamazyme WSR-SW Envirocare VTC Carpet Cleaner Enviroclean Drew Electric 2000 OCSR-SOL Disclean
Use amount of Hazardous Chemical (Unit : unit/vessel)
Product Unit 2010 2011 2012 2013 2014
Oxygen Control Can 2.03 0.05 0.17 0.24 0.09 Amerzine Drum 0.50 0.12 0 0.06 0 AGK-100 Can 17.93 5.90 14.74 5.26 7.36 Liquitreat Liter 9.53 6.02 4.43 2.28 5.56 Amerzine Can 4.23 2.88 3.67 3.59 4.67 SLCC-A Can 0.25 0.19 0.12 0.07 0.44 Adjunct B Can 0.18 0.14 0.74 0.06 0.09 Phosphate Ampoule Kit EA 7.98 6.74 4.60 2.43 1.73 Condensate Control Can 0.28 0.24 0.31 0.17 0.33 GC Can 0.55 0.69 3.07 0.11 0.20 Autotreat Can 0.78 1.24 1.62 2.20 3.36 Oxygen Scavenger Plus Liter 10.73 27.0 12.81 28.63 40.60
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2015 Environmental Report □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Natural Ecosystem Conservation Efforts
Afforestation
Afforestation Thinking that small actions of individuals can save our planet, we drew employees’ attention to the issues of climate change through various education and publishing. The education is a good basis for environmental leadership to think of planet. By this we promote company-wise eco- friendliness campaign, and raise interest in the forest. Thus, Hyundai Merchant Marine actively leads Seoul afforestation which is resting place for the citizens. Five hundred employees are involved in various activities like removing weeds, fertilizing, planting seeds in Seoul forest. Acknowledged by this service, we received Participation Prize in afforestation at the event of ‘Forest Love Sharing’ held by Seoul City. Staff members in Pusan participated in cleaning and removing weeds each Friday at UN Memorial Park keeping pace with Seoul afforestation.
Green Box
Green Box(Collect Waste We have been selected as the best volunteers from Seoul Volunteer Center with the event to Mobile Phone) collect waste mobile phones after installing green boxes for resource utilization and environment protection. Green Box Campaign is to practice environmental conservation and donate the profits from collecting waste mobile phones to neighbors in need. Hyundai Merchant Marine actively promotes recycling of other wastes beside used mobile phones. We donate things collected from employees by holding ‘ANABADA(conserve, share, change, re-use)’ fair.
49 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Management of Eco-Friendly Supply Chain
Green Purchase
Green Purchase means to minimize environmental effects from purchase stage by purchasing eco-friendly material like low chemicals material, energy saving materials, recycling materials. Hyundai Merchant Marine intends to practice green purchase with the establishment of eco- friendly product purchase policy to raise company’s value through eco-friendly management.
Though Green Purchase is defined as purchasing parts and products which do not have harmful substance for environment, gradual lowering of harmful substance’s use rate and purchasing products of good energy efficiency is called green purchase. Systemizing green purchase, Hyundai Merchant Marine actively practices and discloses the result of green purchase promotion each year for it to be continuously expanded.
(Unit : mill. USD) Year 2010 2011 2012 2013 2014
Green Purchase 23.05 26.78 76.69 83.5 63.0
Promotion Activities
Hyundai Merchant Marine is making an effort to expand the green purchase continuously by way of building the purchase system for eco-friendly materials and ‘Eco-friendly’ marks through making green purchase process. As a part of it, we purchase environmentally certified products, products with recycling marks and energy-saving-certified products and increase items through discovering of eco-friendly materials.
2015 Environmental Report 50 □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Certifications · Awards
Hyundai Merchant Marine continuously makes efforts for green growth through saving energy in response to climate change convention and to the demand of interested people locally and globally.
Greenhouse Gas Verification Statement Greenhouse Gas Verification
HMM has established the foundation for positive response to climate change and international demand by building carbon foot print calculation system and investigating the source of GHG emissions. The system is proven to be ‘excellent’ when verified by Korean Register of Shipping.
CCWG EPMA Verification CCWG EPMA Verification
Environmental Performance Metrics Assessment as required by Clean Cargo Working Group i.e. the gathering of container companies and shippers is verified by Korean Register of Shipping.
Clean Shipping Index Clean Shipping Index Verification
We provide shippers with each ship’s environmental results to Clean Shipping Project, a meeting of Sweden shippers. HMM is providing shippers with exact information through verification in order to meet evaluation type changed in 2012.
Green Ship Certificate Green Ship Certificate
'M / V Pacific Pride' was issued a certificate of eco-friendly ship. This certificate is the first time in Korea. This is to certify the excellence of three aspects such as vessel management, operation and the compliance to conventions regulated by International Maritime Organization(IMO) HMM has received certificates of eco-friendly ship for 7 vessels in total.
51 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Green Management System(GMS) Certification GMS Certificate
Hyundai Merchant Marine incorporated Green Management systems, which incorporated the essential part of energy, greenhouse gas control and social responsibility management system based on existing environmental management system. HMM received the certificate of the GMS for the first time in domestic shipping industry.
Awarded with Prize for Carbon Management Industry Leader Carbon Management Industrial Leader Award Carbon Disclosure Project is a part of climate change project recognized by 60 countries in the world. Hyundai Merchant Marine joined the project in 2009. In 2014 we were awarded a prize for Carbon Management Industry Leader out of 250 companies 4 years in a row.
Awarded Prize of Minister of Land, Transport and Maritime Affairs Awards We were awarded with the prize by Ministry of Land, Transport and Maritime Affairs in recognition of active cooperation with resect to environmental protection.
Awarded Samsung Electronics’ Best Partner Prize Best Partner Prize Hyundai Merchant Marine received Best Partner prize, being acknowledged with green management at logistics forum held by Samsung Electronics.
Eco-Friendly Excellent Ships
Certifications Green Flag at Los Angeles/Long Beach. Granted a USCG Qualship21. Designated “Green Ship” by National Maritime Police Agency.
2015 Environmental Report 52 □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Shipping Companies’ Environmental Evaluation
• 4th rank in CCWG Shipping companies environmental evaluation(2013) • 3rd rank in Clean Shipping Project(2012) • Corporate Governance Service’s environmental evaluation (14th rank among 500 companies, 1st rank in environmental evaluation among shipping companies)
Agent for Carbon Secured Experts in Carbon Emission Rights Trade System Emission Trade
Shipping industry is discussing the restriction on greenhouse gas emission aiming at the enforcement in 2017 by International Maritime Organization. Korea needs to prepare for that as a bill for emission right trade system is submitted for execution in 2015. Thus, Hyundai Merchant Marine secures experts in carbon emission rights trading to respond to the changes.
53 Hyundai Merchant Marine Co., Ltd. Crew Training Center
Individual course for bridge, engine, safety and cargo operations using advanced facilities
SHS (3 Bridge System) ECDIS GMDSS LNGC Simulator
Oily Water Separator Fire Extinguishing System Safety Equipment Valve Equipment
ERS MSBD/ESBD Engine Equipment Refrigeration Simulator
PID Control Simulator Pne. & Hyd. Control Simulator Steam Turbine Simulator Elevator
2015 Environmental Report 54 □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Green Communication Activities
Carbon Disclosure Project Participate in Carbon Information Disclosure Project(CDP)
This project is a part of climate change project being under way in 60 countries across the world. Hyundai Merchant Marine has voluntarily participated in CDP since 2009 and so far we have clearly disclosed strategy, plan and results of greenhouse gas reduction.
Greenhouse Gas Control System Built Customer’s Greenhouse Gas Management System
Hyundai Merchant Marine has built greenhouse gas management system for EUKOR Car Carries with Hyundai U&I in 2011. By this, the excellence of our greenhouse gas control system and the leading position in future greenhouse gas field is proven.
Participated in SIMS 2011 Participated in SIMS Conference
SIMS held by KRS(Korean Registry of Shipping) is top-class maritime affairs conference where maritime affairs industry gathers. Representing domestic shipping companies, Hyundai Merchant Marine explained international trend and our efforts and results with subject of ‘Green shipping and Korea shipping companies’.
Published a Book Published Greenhouse Gas Emission Booklet
Hyundai Merchant Marine published a book ‘Greenhouse Gas Emission’ to help employees to understand and participate. This book covers main issues of greenhouse gas and Hyundai Merchant Marine’s activities and performances.
55 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Participate in Clean Cargo Working Group
In a meeting that container shipping companies and large shipper companies voluntarily participate for eco-friendly maritime transport, the evaluation results of shipping companies’ environmental performance are shared with shippers each year. This meeting strengthens environmental management for entire logistics sectors through cooperation with related institutions. Hyundai Merchant Marine makes efforts for the enhancement of continuous environmental results after joining in 2005.
Clean Shipping Project Clean Shipping Project
We provide shippers with each ship’s environmental results from Clean Shipping Project, a meeting of Sweden shippers. The environmental results will be provided for shippers after 3rd party verification..
Participate in World Shipping Council World Shipping Council
Hyundai Merchant Marine practices eco-friendly green management ahead of others by sharing information about environmental issues and positively responding to it through WSC which is established in order to cope with problems in relation to container transport.
Communication with customers
Many customers and the interested parties of Hyundai Merchant Marine demand the disclosure of information about green management. We clearly disclose information about green management upon request of individual customers and interested persons in addition to the regular reports.
2015 Environmental Report 56 □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Status and Respond to International Environmental Regulation
Hyundai Merchant Marine establishes responding strategy to each of international environmental
regulation. Please refer to Green Activity & Performance for ODS, CO2, NOx, SOx, VOCs, EEDI, SEEMP, Ballast Water Management Convention. As international environmental regulations are getting stricter, we will take every measures required to respond to these regulations.
Ozone Depleting Substances
ODS Record Book has been required since 1 July 2010
HCFCs banned
1 Jul 2010 2020
NOx
Tier 4 US EPA (Cat 1 & 2) Tier 3(ECA) Tier 1 Tier 2 MARPOL US EPA Cat 3
2011 2014 2016
SOx
0.1 % S CARB 0.1 % S EU Ports
1.5% S 1.0% S 0.1% S MARPOL ECA 1 Jul 2010 1 Aug 2012(USA/Canada) 4.5% S 3.5 % S 0.5 % S MARPOL Global
2010 2012 2015 2020/2025
57 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
VOC Management Plan
VOC Management Plans have been required since 1 July 2010
1 Jul 2010 2020
EEDI, SEEMP ~ became mandatory since January 1, 2013 0
EEOI
EEOI guidelines may already be used on a voluntary basis
GHG market-based measures
Discussions ongoing at the International Maritime Organization
Ship Recycling Convention
Entry into force is now expected between 2014 and 2016
Anti-Fouling Systems Convention
Entered into force September 2008
Bio-fouling Guidelines
Entry into force is now expected between 2014 and 2016
Ballast Water Management Convention
Possible entry into force 2016
Air Pollution Prevention
Restriction on air pollution materials discharged from ships are gradually expanding globally. Especially, restriction on SOx, NOx gets more intensified. The regulations of IMO Global Sulfur content got lowered to 3.5% from 4.5% and each harbor adds additional restriction to regulate their country’s air pollution. Hyundai Merchant Marine will create new opportunities in responding to these restrictions in advance.
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Ballast Water Management Convention
Various maritime creatures included in ballast water move to the coasts of other countries, disturbing and destroying ecosystem. IMO, in response to this, adopted ‘Ballast Water Control Agreement’ and requires that all existing ships must equip with it when the terms of ratification are accepted. Hyundai Merchant Marine is now operating Ballast Water Treatment System in container ships and will expand installing the system to all fleet.
Anti-Fouling Management
The accumulated organisms like animals, plants or micro organisms attached on the surface and the structure of the hull exposed to sea cause movement of invasive aquatic life. IMO has drawn up guild line to reduce risks about this invasive aquatic life’s move and inflow, and California in U.S promotes mandatory Bio Fouling Management Plan and Record Book. Hyundai Merchant Marine applies anti-fouling paint to seawater piping system and use appropriate Marine Growth Prevention System.
Garbage Disposal Restriction
Despite that Caribbean water was designated as special waters, restriction on waste material disposal was not in effect as there is no notice to accommodation facility. But, from May 1st in 2011 this water is controlled according to related regulation upon taking effect.
Navigational Safety
With raising interest in navigational devices to reduce the possibility of collision and stranding, Hyundai Merchant Marine responds to the regulation through the installation of Electronic Chart Display and Information System and Bridge Navigational Watch Alarm System.
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Ship Recycling Convention
Since 1990s ship recycling was mainly done in India, Pakistan and Bangladesh. However, in these countries many accidents and environmental pollution became a big social problem because of incomplete measure for laborers’ safety and environment. IMO adopted ship recycling convention last 2009 for safe and eco-friendly ship scraping, but it did not take effect until now. Though mandatory laws did not take effect, Hyundai Merchant Marine has clear, safe and eco-friendly ship scraping procedures.
First, we make a list of harmful materials by identifying asbestos, PCBs, ozone depletion substance etc.. This list makes ship scraping companies able to grasp information of harmful materials and cope with securing of laborers’ safety and environmental preservation. When scraping ships we select safest and most eco-friendly ship scraping place through prior investigation. At this place we supervise entire process by dispatching qualified supervisor through contract with ship scraping company or its agency.
Legal Regulations
Ado Taking Institution Laws Contents Remarks ption effect Basel Ban on harmful material move • Korea ratification 1989 1992 Convention
Basel Mandatory disposal of harmful • Korea not ratified UNEP 1997 convention’s materials before scraping • Europe only ban - ratification amendment Guidance for ship scraping l ILO Guideline 2004 ILO aborers’ safety -
Define liability and duty of re • No ratified country Ship recycling 2009 IMO lated persons upon ship scr - convention aping Mandatory disposal of harmf EU Regulation 2006 2007 ul materials before scraping EU 1013/2006
STCW – Manila Convention
The STCW was amended in Manila in 2010 due to the ship becoming larger and specialized. The related regulations took effect on January 1 2012. Hyundai Merchant Marine makes efforts to enhance crew welfare by granting education and minimum rest hour and education through Training Center.
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Energy Saving Activities
Hyundai Merchant Marine invests on various kinds of facilities for the improvement of energy efficiency. Taking the characteristics of ship into account, we apply several kinds of energy-saving facilities, open its analysis results and continuously expand investment. Also we have many facilities being tested to verify effectiveness of such facilities.
Reduction Division Items A B C Potential (%)
Hull Cleaning/Blasting ● ● ● 1~3
Hull tolerance reduction Propeller polishing ● ● ● 1~3
improving facility Bulbous Modification ● 4~7
Fuel saving paint ● ○ ● 3~5
PBCF installation ● ● ● 3~5
Propeller efficiency Twisted leading edge rudder ● 1~3
improving facility Propeller Silicon Painting ● 1~3
Mewis Duct ○ ● 5
Main engine slide valve ● ● ● 1.5
Engine efficiency Electronic Engine ● 2
improving facility Fuel Oil Additive ● 1~3
Main Engine De-rating ● 4
Sludge/fuel reduction facility Homogenizer ● 1
Energy consumption ● 5 Optimizer system
Operating facility Super slow steaming ● ● ● 25~40
Provide energy save operation/skill ● ● ● - guidance
ALPHA lubricator ● ● ● 10~30 LO consumption Cylinder oil FROP ● 1~5
M/E T/C Blind type ● 2~3 Facility change Cut-off Slow steaming kit ● 1~5
A: Container B:Tanker C:Bulk ●: Applied, ○: Reviewed
63 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Operation efficiency improving Hull tolerance reduction improving ① Hull optimization ① Weather routing ② Bow modification ② Trim optimization ③ Hull/Propeller cleaning ③ Performance monitoring ④ Hull coating ④ Slow steaming ⑤ Micro bubble
Engine efficiency improving Others ① WHRS ① M/E De-rating ② Shaft generator ② Electronic Engine ③ LNG fuel engine ③ T/C Cut off ④ Homogenizer ⑤ Energy Saving System(ESS) ⑥ Alpha lubricator Propeller efficiency improving ⑦ LED lamp ⑧ Mass flowmeter ① Pre-Swirl Stator ⑨ Fuel Oil Additive ② Mewis duct ③ Propeller Boss Cap Fin ④ Rudder fins
2015 Environmental Report 64 □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Bulbous Modification
HMM has recently completed the modification of bulbous bow on eight 8,600TEU containership for the first time in Korea. This means the job was executed for the second time in the world following Maersk line. The original bulbous bow was designed for navigating at high speed (27kts), but the company has decided to make bulbous bow modification in line with the slow steaming to 18 Kts. As a result, the company achieved around 3% of fuel saving, equivalent to 1,040M/T(600,000 USD) per year.
Optimizing Point CFD Simulation
• Past Operation Profile • Future Business Plan • Market Trend • Multi Optimizing
New Bulbous
Before
After
65 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Hull Cleaning/Blasting
Years after Dry Dock, the effect of anti-fouling coating gets weak and aquatic life attaches on the hull. The vessel requires spare horse power to maintain the same speed. This means additional fuel consumption and we need to clean the bottom of the hull and save the fuel consumption. This increases the hull tolerance that; • 1~3% fuel reduction • 0.2~0.5knot speed improving • Effects continued for 3~5 months after cleaning
Propeller Polishing Propeller Polishing Regular propeller polishing is effective in increasing energy efficiency. From hull control and observation system’ point of view, it has a merit to check other part of the hull during regular polishing.
• 1% fuel saving • Effects continued for 3 months after polishing
Constant Speed Sailing
We realize fuel saving through the increase or decrease of speed with optimum course/speed setting reflecting remaining course/time. When making passage plan, we assume constant speed considering navigational information received from shore. In the case of container ship, we maintain ±0.3 knot of target speed.
Minimize Ballast Water
We try to save energy by maintaining ballast water at minimum, if possible, to reduce propelling resistance . Generally, ship’s propelling resistance is proportional to 2/3 of discharged water amount. IMO Minimum Ballast Condition is mentioned on ‘Loading Manual’.
2015 Environmental Report 66 □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Trim Optimization
Trim Optimization Hull resistance is normally minimized under Even Keel condition in case of full load. Optimum trim is determined depending on how much of propeller is submerged, but it changes according to the type of Bulbous bow, hull, draft and speed. The amount of ballast water shall be adjusted counting on speed, sea status, depth etc. We operate vessel to determine the proper discharge water and trim in normal navigation because these affect fuel consumption tremendously.
Slow Steaming Slow Steaming
Slow steaming is the most effective way to save fuel consumption because it is proportional to 3rd power of speed. If not urgent on schedule, we set speed as low as possible and adjust ETA and speed so as not to arrive too early at the next port of call.
Propeller Boss Cap Fin Propeller Boss Cap Fin
We install additional propeller blades (called Boss Cap Fin) to reduce Hub Vortex to improve energy efficiency.
Rudder Thrust Fin
By installing Thrust Fin on rudder, technology of lift power of airplane, we try to improve energy efficiency.
Twisted Leading Edge Rudder
As Rudder Cavitation erosion damage is frequent due to increase of ship speed and engine power upon large and high speed of container ship, we apply twisted leading edge rudder to new-building container ship for minimizing cavitation and improving its function.
67 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Homogenizer
We apply homogenizer that increases energy efficiency by improving combustibility and reducing sludge by means of pulverizing particles of fuel oil with use of mechanic frictional force and ultrasonic waves.
Energy Saving Type Paint Anti-fouling Paint
We reduce marine contamination with the use of eco-friendly paint for outer plate of hull and gain 3~5% of fuel saving by reducing hull resistance with use of the paint that naturally removes foreign materials.
Fuel Oil Additive
We gain 3~5% of fuel saving with additive that breaks sludge up and increases combustibility. And we also aim to operate vessel eco-friendly together with reduction of NOx, SOx, Soot and other floating particles in exhaust gas using the additive that makes fuel oil minute and homogeneous.
Improvement Propelling Efficiency Mewis Duct With installation at front of propeller, we apply Mewis Duct to Bulk Carrier that can reduce fuel with Wake Field optimization and reduction of rudder.
Alternative Maritime Power System
AMP System Supplying power from shore to vessel has an effect on not only saving fuel during berth but also reducing pollutants into air. The trend is that harbors with mandatory AMP use are increased due to increased concern on air pollution. Hyundai Merchant Marine plans to install AMP facility in ships and self-supporting terminals.
2015 Environmental Report 68 □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Eco-Friendly Technology
Hyundai Merchant Marine is raising efficiency and reducing greenhouse gas with continuous facility investments for eco-friendly ships. We improve engine efficiency by installing various fuel-saving, applying fuel-save type paint and attaching propeller boss cap fin. Variable catch-fire distributor, engine turbo supercharger cut-off device and fuel homogeneous device are the examples of our improvements. We also reduce fuel oil consumption by sailing at economic speed. For 5 container ships of 13,100TEU, eco-friendly engine will be installed to minimize CO2 emission and maximizes fuel efficiency.
WHRS
EGR/SCR
PSS
Required EEDI : 16.0 Attained EEDI : 8.5
Becker Rudder ESS Fuel Saving Paint BWTS
69 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Green Technology Research Activities
Built Green Ships TCS System
Hyundai Merchant Marine participates in a national project for green ship TCS(Testing, Certification and Standard) organized by Ministry of Land, Transport and Maritime Affairs. And this project is aiming at establishing international standards by developing procedure and technical standards to verify the green ships technology. We built green ship certification system to support commercialization based on applying various green ship technologies.
Green ship TCS system Energy efficiency increasing technology Design evaluation and functional Greenhouse gas emission reducing Certification technology evaluation New recycling energy grafting technology
Test/Verification Standard Certification
• Identify green ship TCS object • Develop design evaluation • Develop certifying technology technology standard • Build int’l certification system • Build test facility for technical • Develop functional evaluation and • Develop certifying technology post verification standard management system • Effect analysis and verifying • Verify safety • Global Standard [IMO acvitity] actual ship
Development of Ship Life Cycle Management System
Hyundai Merchant Marine participates in a national task for operation-stage life cycle management technology development organised by the Ministry of Knowledge and Economy. This aims at supporting decision-making by acquiring & controlling life cycle information required for operation in design/ship building stages and utilizing information of operation, test, maintenance and recycling.
Interface with key Life cycle combined information History Life cycle management systems management system management applying
Production Operation
• Drawings • System status Shipyard A • 3D model • Sailing monitoring • Function • Maintenance • Remained life Ship & ocean interpreting • Test prediction combined material • Repair • Maintenance plan Shipyard B information • Paint • Damage • Test plan model • Thickness • Recycling • Accidents responding • Welding status • PSC technology • Decision-making support Shipyard C • Recycling 2~3 years Over 25 years
Ship/ocean data Shipyard Shipping company Ship classification combining platform •Management /AS after •Efficiency of navigating •Increase test quality •Large amount data delivery •Save maintenance costs •Secure safety processing technology •Create new business
2015 Environmental Report 70 □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Greenship Technology Collaboration
Hyundai Ocean Service, a subsidiary of HMM held the MOU signing ceremony with KR, subsidiary of Korean Register of Shipping on May 11, 2015 and agreed to jointly develop the greenship technology. We will present our ability for saving fuel consumption and reducing GHG emission by utilizing the accumulated technology with the co-development. It is true that we have depended on foreign technology mainly from Europe. We expect, however, that the green ship concept can be developed only with domestic technology. It will also help improving mid/small size companies’ competitiveness by giving them opportunities to develop the related technologies and products.
Co-development Scope
. Operation Optimization . Bow Shape Optimization . Fixed-hull fittings development . Propeller Optimization . Monitoring, Recording & Verification System Development . Vessel Energy Efficiency Monitoring System . Waste Heat Recovery System . Fuel Oil Additive . Hull Paint . New concept power source . Alternative Fuel Technologies Development . Air Pollutants(NOx, SOx, PM) apart from Greenhouse gas . Volatile Organic Compounds reduction equipment . Energy Saving Technology – Marginal Abatement Cost . LNG Fuelled Ship Feasibility
71 Hyundai Merchant Marine Co., Ltd. □ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Development of Energy Efficiency Monitoring System
HMM has developed the energy efficiency monitoring system and has applied it to 29 containerships. This system is an intelligent IT solution to save fuel consumption by monitoring and analyzing the energy efficiency on a real time basis. It can save fuel costs by finding optimized operational condition with on-going measurement of fuel consumption and engine performance. The company plans to expand the application of the IT solution to more ships.
. Operation Optimization . Optimal Route(Weather Routing) . Optimal Speed . Optimal Trim . Recommend RPM and Speed . Bunker, Ballast Water and Sludge Monitoring . Performance Monitoring . Estimating Hull & Propeller Cleaning Cycle . Energy Balance . Fuel Consumption Monitoring(SFOC, DFOC, ton/n.mile) . Analysis Tools for Fuel Oil Consumption in various condition . EEOI & SEEMP . Engine Parameter Real Time Monitoring (about 800 Points) . Other
2015 Environmental Report 72
2015 Environmental Report Report Index
Applied Ministry of Environment’s guideline of environmental report Contents level 1.1 CEO’s declaration ● 3~4 1.2 Company overview ● 5~8 1. Summary 1.3 Summary of environmental report ● Summary of report 1.4 Sketch ▲ Summary, 3~4 2.1 Environment policy ● 11, 15 2. Environment vision and 2.2 Medium & long term environmental goal ● 15 strategy 2.3 Environment goal achieving results of the year ● 16, 29~45, website 2.4 Next year’s environmental goal ● 16, website 3.1 Environment management system ● 19~21 3.2 Environmental accidents responding system ● 22 3.3 Environmental audit ● 23 3. Environment management 3.4 Environmental education ● 24 system 3.5 Environmental results evaluation (EPE) ● 25 3.6 Environmental accounting ▲ 3.7 Outside environmental investment ● 26 4.1 Resource use ● 29 4.2 Water use ● 30 4.3 Energy use ● 30 4.4 Response to climate change ● 31~34 4.5 Use and emission of ozone depletion substance ● 35 4.6 Emission of air pollutants ● 36 4.7 Emission water contaminants ● 39~40 4. Environmental effects and 4.8 Discharge and recycling waste ● 41 results 4.9 Soil pollution control ▲ 4.10 Environmental effects evaluation ● 42~43 4.11 Eco-friendly products ● 42, 65~72 4.12 Eco-friendly package ● 42, 65~72 4.13 Eco-friendly transport ● 44~45 4.14 Health•Safety ▲ 42~43 4.15 Noise•Vibration ▲ 42~43 4.16 Toxic chemicals management ● 46 5.1 Natural ecosystem preservation efforts ● 49 5.2 Eco-friendly supply chain control ● 50 5. Partnership of interested 5.3 Law observation ● Nothing person 5.4 Certifications•Awards ● 51~53 5.5 Environmental communication activities ● 55~56 5.6 Response to int’l environmental restriction ● 57~60 6.1 Report Index ● 75 6. Appendix 6.2 3rd party verification opinions ▲ 6.3 Definition of term ● 77~78
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2015 Environmental Report 76 Term Explanation
CCWG(Clean Cargo Working Group) GEEMS As an affiliated organization of BSR(Business for Social As an abbreviation of Green Energy Efficiency Management Responsibility), non-profit group composed with System, Hyundai Merchant Marine’s greenhouse gas shipping companies and shippers who voluntarily acts general management system that can in real time monitor to analyze social and environmental aspects and to and analyze greenhouse gas emission discharged through protect global environment in relation to transport business activities.
CDM(Clean Development Mechanism) GMS(Green Management System) Greenhouse gas reduction business system jointly Management system that fulfills social, ethical responsibility promoted by advanced and developing countries for while minimizing greenhouse gas emission and alleviation of global warming status according to environmental pollution, saving and effectively using restriction of article 12 of Kyoto Protocol adopted at resources and energy in company’s management activity general meeting of Climate Change Convention GRI(Global Reporting Initiative) CDP(Carbon Disclosure Project) An international institution who suggests guideline of A global project performing research analysis based on sustainable reports. Sustainable reports means the report companies management strategy in medium & long that contains responsibility for company to take for term view of carbon emission(or greenhouse gas environmental and social problems. emission) related exact information and relevant issue, a main factor of ‘Climate Change’, from world’s main IPCC(Intergovernmental Panel on Climate Change) listed companies, on behalf of finance/investment A panel between governments for climate change. institutions including fund investment institutions in the Organized in 1988 with experts of each country under UN to world. review general countermeasure especially for greenhouse among global environment. This ultimately aims at entering EEDI(Energy Efficiency Design Index) global greenhouse preventing convention, while reviewing 3 Reflect on factors like main feature of ship design, working groups of greenhouse’s scientific evaluation, engine performance and trial operation result, as an influence on environment and society and its response. engine efficiency index upon ship design. IMO(International Maritime Organization) EEOI(Energy Efficiency Operational Indicator) UN’s specialized institution installed to globally unifying As an fuel efficiency index of actual navigation, the ship’s navigational route, traffic and harbor facilities. standard of fuel consumption used to transport unit cargo to as much as specific distance.
77 Hyundai Merchant Marine Co., Ltd. MRO Product SOx(Sulfur Oxides) Various office equipment and consumables used in It means sulfur oxide mainly SO2 and SO3 consist of it. maintenance, repair and operation. Generally there are much of SO2 in emission gas, though both of SO2 and SO3 happen when sulfur or fuel that MARPOL contains sulfur burns. International Convention for the prevention of marine pollution from ships. Also called MARPOL 73/78 and an VOCs(Volatile Organic Compounds) international convention and its related 1978 Protocol This volatizes in air causing odor and ozone, and means for prevention of pollution by ships adopted by hydrocarbon compound, a carcinogen which cause disorder international maritime organization in nervous system through skin contact or inhale. Commonly call benzene, formaldehyde, toluene, ethylene, styrene and MEPC acetaldehyde As an abbreviation of Marine Environment Protection Committee, one of 5 committees installed inside IMO in Greenhouse Gas UN. This committee performs function of deliberation of Gas which cause greenhouse effect among several gases issued to prevent and restrict marine contamination by which form air. The representing gases are CO2, CH4, N2O, ships and adopting and amendment of international HFCs, PFCs, SFs convention GHG Inventory NOx (Nitrogen Oxide) Operational system that systematically controls greenhouse As a compound of nitrogen and oxygen, happens when gas emission source with listing in each facility, process, nitrogen in air gets oxidized in high temperature in business place so as to statistically control company’s combustion. 7 kinds are known and the most important greenhouse gas emission. one as pollution issue is NO, nitrogen dioxide. Representing nitrogen dioxide emission sources are car, airplane, ship, industrial boiler, incinerator.
SEEMP As an abbreviation of Ship Energy Efficiency Management Plan, it means ship energy efficiency control plan.
2015 Environmental Report 78 HMM’S Development
1976 Company established as Asia Merchant Marine on March 25. Transportation service opened with a fleet of three VLCCs. 1977 Bulk cargo tramper service and deep-sea tug service began. 1978 Conventional liner service opened between the Far East and the Middle East. 1980 Specialized car carrier service established. 1981 Specialized ore and coal transportation service began. 1982 U.S. subsidiary, Asia Merchant Marine America (AMM America) founded. 1983 Company name changed to Hyundai Merchant Marine Co., Ltd. on August 9. 1985 Full container service opened between the Far East and the Western U.S. Acquisition of Dong Hae Merchant Marine and Shin Han Shipping completed. 1988 Double stack train (DST) rail service established between Long Beach, Chicago and the Eastern U.S. 1989 Japanese subsidiary incorporated.
1990 Hyundai Intermodal, Inc. (HII) established as a subsidiary to provide a full-service intermodal transport service within the U.S. 1992 Subsidiaries incorporated in Europe and Hong Kong. 1993 U.S. subsidiaries Hyundai America Shipping Agency, Inc. (HASA) established. Established 4 offices in North China(Shanghai, Qingdao, Dalian, Tianjin). 1994 Korea's first LNG transport service began with the launching of the Hyundai Utopia. 1996 Exclusive container terminal opened in Kaohsiung, Taiwan. ISO14001 certification acquired – the first among the world's multimodal transportation companies. 1998 The New World Alliance service began with APL and MOL. 1999 100% management rights for California United Terminals in Long Beach acquired.
2000 Hyundai Merchant Marine (France) S.A. opened. 2001 ‘Cyber Customer Service Center’ opened. 6,500 TEU container vessels on the PSW (Pacific-Southwest service) route deployed. 2003 South-East/West Asia Headquarters and China Headquarters established. 2004 All of HMM’s vessels and port facilities approved as in accordance with the ISPS Code. 2005 Established an Indian subsidiary. 2006 Opened a branch office in Warsaw, Poland. Held the 30th anniversary ceremony. Selected as the terminal operator for 2-2 container terminal of Busan New Port. 2007 Launched three 6,800 TEU and three 4,700 TEU container ships. Selected to develop Rotterdam Container Terminal. Established HMM Italy SRL. and HMM Vietnam Co., Ltd. Established a dedicated express rail service between Hamburg and Mlawa. 2008 Launched new 8,600 TEU container ship ‘Hyundai Brave’. Established subsidiaries in Russia, U.A.E., Australia, and Austria. 2009 Established direct services from Vietnam to the US West Coast. Held 10th anniversary ceremony of Washington United Terminals, Tacoma, WA, USA. Opened the Danube Express service (a rail service between Budapest and Hamburg)
79 Hyundai Merchant Marine Co., Ltd. 2010 Certified as Korea AEO(Authorized Economic Operator) 'AA' level. Moved into new head office in Yeonji-dong, Seoul. Hyundai Pusan New-Port Terminal opened. 2011 Opened CUT(California United Terminal) at L.A., USA. Ordered five 13,100 TEU container ships. Proclamation of new vision and mission as, ‘The Pumping Heart of the Global Supply Chain.’ Formed world's largest shipping alliance ‘G6’ with APL, MOL, Hapag-Lloyd, NYK, OOCL. 2012 Asia-Europe service launched by G6 Alliance. Established ship management company, Hyundai Ocean Service Co., Ltd. M/V Pacific Pride received ‘eco-friendly vessel’ certification, the first vessel to do so in Korea. 2013 Launched customer service application for smartphone and tablet users. Signed an 18-year coal delivery contract with KEPCO(Korea Electric Power Corporation) subsidiaries. HPNT wins ‘Terminal of the Year’ award for the 2nd consecutive year. WUT(Washington United Terminals) received the Port of Tacoma’s Business Magnet Award. 2014 Held naming ceremony for 'Hyundai Dream', the 13,100TEU container vessel Opened Global Documentation Center in Mumbai, India Received TARGET’s ‘2013 Outstanding Partnership Award’ Select as Climate Performance Leader for Fourth Consecutive Year 2015 Proclamation of new mission as “We make your cargo valuable and deliver a better tomorrow” and new vision as “HI 2020-The Winning & Creating Pioneer” Entered into Eco-ship Project Fund with Kexim. Launched a new FE-Latin America service. HPNT honored as a Busan Newport “Excellent Productivity Terminal”.
2015 Environmental Report 80 Overseas Organizations
HMM Europe HMM South-East/West Asia HMM China HMM America HMM [Europe], Ltd. HMM [Singapore] Pte. Ltd. HMM [China], CO., Ltd. HMM [America], lnc. London Singapore Shanghai Hyundai America Shipping Agency. lnc Southampton HMM [Thailand] Co., Ltd. Qingdao HASA lrving Birmingham Laem Chabang Tianjin HASA L.A Manchester Songkhla Dalian HASA San Francisco HMM [Deutschland] GMBH HMM [Malaysia] Sdn. Bhd. Ningbo HASA Houston Frankfurt Penang Nanjing HASA Dallas Bremen Johor Bahru Chengdu Global DOC Center HASA Seattle Duesseldort HMM [India] Pvt. Ltd. HASA Portland Muenchen New Delhi HASA Vancouver Poland Chennai HASA Toronto HMM [Netherlands] B.V HMM [Vietnam] CO., Ltd. HASA Chicago HMM [Belgium] N.V Ha Noi HASA Cleveland HMM [France] S.A Hai Phong HASA Cincinnati Paris HMM [Chittagong] HASA Kansas City Marseille HMM [Australia] Pty., Ltd. HASA St. Louis Lyon Melbourne HASA Minneapolis Strasbourg Brisbane HASA New Jersey HMM [Scandinavia] AB Adelaide HASA Boston Sweden [Gothenburg] HMM [Japan] CO., Ltd. HASA Atlanta Denmark [Copenhagen] Osaka HASA Memphis Norway [Oslo] HMM [Hong Kong] Ltd. HASA Charlotte Finland [Helsinki] Shenzhen HASA Phoenix RCSC HMM [Italy] S.R.L Guangzhou HASA Chicago RCSC Milan Xiamen HASA Charlotte RCSC HMM [CIS] LLC Hyundai Ocean Pioneer Shipping Agency CO., Ltd. Hyundai Intermodal, lnc. HMM [Austria] GMBH HMM [Taiwan] CO., Ltd. California United Terminals, lnc. Czech [Prague] HMM [U.A.E] LLC Washington United Terminals, lnc. Hungary [Budapest] HMM [Jakarta] HMM [Sau Paulo]
81 Hyundai Merchant Marine Co., Ltd. Emissions Calculation For greenhouse gases and other air pollutants
Performance Improvements Promote environmentally Performance Reporting responsible practices and Annual Environmental continual improvement Performance Survey (EPS)
2015 Environmental Report 82 Hyundai Merchant Marine Co., Ltd. Hyundai Group Building, 1-7 Yeonji-Dong, Jongno-Gu, Seoul 110-754, Korea TEL. 02-3706-5114 FAX. 02-734-8496 www.hmm21.com