Environmental Report 2017 - Hyundai Merchant Marine - …E)_1.pdf · Environmental Report 2017 ......
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Environmental Report 2017
Environmental Report 2017
We make your cargo valuable and deliver a better tomorrow.
About This Report
Reporting Period and Scope
The period of this report is from January 1 2015 to
December 31 2016, and the data of year 2012, 2013 and
2014 is used to provide information of comparison and
progress with 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 companies and overseas corporates
are included too.
Standard of Composition and Verification
This report is composed in reference to GRI(Global
Reporting Initiative) G3 guideline and Ministry of
Environment‟s Environmental report guideline. Green-house
Gas Emission is in reference to IPCC guideline.
Hyundai Merchant Marine Co., Ltd. practices low carbon
green growth management to contribute to environmental
preservation and happiness through eco-friendly
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-
carbon & green growth management, and to aim at
suggesting the will and vision for green management that we
pursue.
Purpose of Publication Additional Information
Additional information to this report may be obtained from
following individual reports, Hyundai Merchant Marine‟s
homepage or other related websites.
Reports
• Environmental Reports
• Green-house Gas Inventory Report
• Annual Report
Websites
• www.hmm21.com : Homepage
• dart.fss.or.kr : Various public announcements
Contact Information
Maritime Technology Team
63 Jungangdaero, Jung-Gu, Busan 600-711, Korea
Tel : 82-51-461-7060
Fax : 82-51-461-6964
E-Mail : [email protected]
Report Issue Date
• June 2017
MISSION
We make your cargo valuable and deliver a better tomorrow.
Make your cargo valuable
By providing reliable service locating
customer‟s cargo safety to right place at
right timing
Value from right timing
Value from right place
Value from satisfaction/happiness
Deliver a better tomorrow
By providing connection among products
and resources all over the world
Abundance of daily lives
Economic abundance
Abundance of future
VISION
HI 2020 – The Winning & Creating Pioneer
HI 2020 • HMM Innovation 2020 • Global Top 5 ship Operator in rate of operating profits by 2020
Winning Pioneer • Winning Culture • Global Competitiveness • Sustainable Growth • High Potential
Creating Pioneer • Creating Culture • Value Creator • New Business & Future
CEO Message
Company Overview
Green Management Strategy
Green Management Vision and Strategy
Green Management Organization
Long-term Roadmap
Green Environment KPI
Long-term Greenhouse Gas Reduction Targets
Green Management System
Green Environment System
Responding system to Environmental Accidents
Green Environmental Audit
Green Environment Education
Evaluation of Green Environment Performance
Green Activity & Performance
Use of Resources
Use of Water
Use of Energy
Climate Change
Use and Emissions of Ozone Depleting Substance
Emission of Air Pollutants
Greenhouse Gas
Management of Water Pollutants
Waste Material Emission and Recycling
Green Environmental Effects Evaluation
Eco-Friendly Transport
Toxic Chemicals
3
5
11
13
15
16
16
19
22
23
24
25
27
28
28
29
33
34
35
37
39
40
42
44
Hyundai Merchant Marine Co., Ltd. 1
Green Community
Natural Ecosystem Conservation Efforts
Management of Eco-Friendly Supply Chain
Certifications · Awards
Green Communication Activities
Status and Respond to International Environmental
Green Product
Energy Saving Activities
Eco-Friendly Technology
Green Technology Research Activities
Appendix
Reports Index
47
48
49
53
55
61
67
68
73
2017 Environmental Report 2
Core Value
CORE VALUE
5C
Customer Society
Employees
Customer satisfaction
Competitive product
Family-like care
Partnership
HMM achieves more than
customer satisfaction by
competitive product,
family-like care and partnership.
Contribution
to community
to environment
to more ethical society
HMM contributes to
community, environment and
more ethical society.
Competence
Leadership
Expertise
Collaboration
Common goal
Communication
Confidence
Challenge
Passion
HMM employees are to be competent, confident
and collaboration –oriented.
CEO Message
Dear valued customers and stakeholders,
Thank you for your interest and support for Hyundai Merchant Marine Co., Ltd.
Hyundai Merchant Marine Co., Ltd. 3
Welcome to HMM!
Since its founding in 1976, HMM has grown to be
the world‟s leading integrated logistics company with
a modern fleet of 120 vessels, a global multi-modal
network, an integrated IT system and top-class
experts.
Last year, HMM has endeavored to become major
carrier under difficulty with all efforts. We take pride
in the contribution we have made so far towards the
development of international trade..
I would like to take this opportunity to express my
gratitude to your continued support and interest
towards us. Your help and support have been
essential ingredients to our success. This
„Environmental Report‟ is a record of our efforts to
reciprocate what we have received from our
customers and the society, and I am delighted to
share our green management activities and results
with you.
“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.
Furthermore, HMM has declared „Green
Management‟ as one of its most important
management policies. Improvements in safety,
quality, environment, health and greenhouse gas
reduction are the key areas through which we aim to
enhance the quality of human life. Our main
activities include investments in eco-friendly
facilities, efficient resource management, recycling
and operational greenhouse gas reduction.
Our remarkable performance has been achieved
through the continued help and support of related
parties, as well as the dedicated efforts of our
company members. HMM is about to leave all its
difficulties behind and enter into a new era of
prosperity. We will change ourselves. We will stay
the Hyundai Way. And we will overcome our
challenges, armed with creativeness and positive
thinking.
2017 Environmental Report 4
CEO C.K. YOO Hyundai Merchant Marine Co., Ltd.
HMM will take lead future with strong willingness
and innovative status overcoming innovation.
And we will continue to make efforts in social
and environmental responsibility, gaining trust
and love from interested parties.
Your love and support will be of great help on our
journey forward.
Thank you.
Company Overview
We make your cargo valuable and deliver a better tomorrow. Hyundai Merchant
Marine Co., ltd. is an integrated logistics company, operating around 120 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 4 international head-quarters, 22
subsidiaries, 63 branches, 8 operating terminals and 5 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”.
Hyundai Merchant Marine Co., Ltd. 5
Hamburg
Le Harve
Gothenburg
London
Genoa
St. Petersburg
Vienna
Hong Kong Dubai
Mumbai Bangkok
Singapore
Klang Ho Chi Minh
Kaohsiung
Taipei
Shanghai Tokyo
Sydney
Long Beach
Tacoma
Irving
Antwerp
Rotterdam HMM HQ
HMM CHINA
HMM America
HMM Europe
HMM South
East/West Asia
Seoul
Operating Terminals
HMM HQ
Regional HQ
2017 Environmental Report 6
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%
HPC Kaohsiung
Tokyo 1,650,000 TEU 100%
TTI Long Beach,
Seattle 3,600,000 TEU 20%
RWG Rotterdam 4,250,000 TEU 20%
HPNT Busan 2,610,000 TEU 10%
TTIA Algeciras 1,860,000 TEU 100%
Fleet Profile
Hyundai Merchant Marine Co., Ltd. 7
※ Unit : Container 1,000 TEU / Wet Bulk 1,000 DWT / Dry Bulk 1,000 DWT
※ „Chartered‟ include the fleet of over one year charter.
구 분 Owned Chartered Total
No Capacity No Capacity No Capacity
Container
2012 20 120 38 218 58 338
2013 18 107 38 229 56 336
2014 23 173 34 218 57 391
2015 23 173 34 218 57 391
2016 24 179 39 272 63 451
Wet Bulk
2012 16 2,388 22 2,883 38 5,271
2013 15 2,088 16 2,320 31 4,408
2014 8 1,334 13 1,816 21 3,150
2015 7 1,228 13 1,817 20 3,045
2016 5 499 8 1,081 13 1,980
Dry Bulk
2012 15 2,213 66 4,742 81 6,955
2013 14 2,013 57 4,092 71 6,105
2014 13 1,975 47 3,341 60 5,316
2015 11 1,624 42 3,101 53 4,725
2016 4 482 35 2,887 39 3,369
Total
2012 51 126 177
2013 47 111 158
2014 44 94 138
2015 41 89 130
2016 33 82 115
(As of Dec 31, 2016)
Economic Performance
Hyundai Merchant Marine recorded KRW 4,348 trillion of revenue in 2016., which is comprised with container business about 3,734 trillion won and bulk business about 584 trillion won.
2017 Environmental Report 8
Business Portfolio in 2016
Debt, Capital and Debt ratio for last 5 years
(Unit : 100 Million won)
86%
13% 1%
컨테이너 벌크 기타
720%
1186%
960%
2007%
350% 100%
600%
1100%
1600%
2100%
-
25,000
50,000
75,000
100,000
2012 2013 2014 2015 2016
부채 자본 부채비율
CNTR
BULK
Debt Capital Debt ratio
Hyundai Merchant Marine has significantly reduced debt ratio to 350 % in 2016 from 2007% in 2015 by recapitalization e.g. issuing convertible bond, increasing paid-in capital, securing liquidity by selling ships
to tonnage bank amount of 850 trillion won.
Strategy to strengthen competitiveness
Hyundai Merchant Marine strengthens competitiveness to make profit after securing
platform to maintain continuing company status in 2016.
New Building Program
: 2.2 Trillion KRW
Korea Ship Ocean Support
: 1 Trillion KRW
KAMCO Ship Fund : 1.9 Trillion KRW
Global Ocean Fund : 1 Trillion KRW
6.6 Trillion KRW
New Building Program
-Support purchasing of ships -Support purchasing of necessary asset
Korea Ship Ocean
- Sale and lease back - Give priority for ocean going containerships
Global Ocean Fund
-Invest share while purchasing asset -Expand amount of investment with leveraging PE etc.
KAMCO Ship Fund
-Support purchasing containership, bulk and tanker - 500 Billion KRW each year
New Building Program ▶ VLCC fleet expansion: Agreed LOI with DSME in April 2017
Building VLCC 5 ships with 5 ships option Korea Ship Ocean ▶ Expanded capital from Korea Ship Ocean in May 2018
Permanent convertible bond 600 Billion KRW Paid-in capital increase 104.3 Billion KRW ▶ Sale and lease back for 10 containership
6* 4700TEU + 4* 8600 TEU
Strategy of strengthen competitiveness of Korea Government
Hyundai Merchant Marine`s participation in policy of Korea Government
9 Hyundai Merchant Marine Co., Ltd.
Ways forward to strengthen business competitiveness
Hyundai Merchant Marine endeavor to become focused ocean carrier based on Asia-
America market competitiveness, and strives to achieve market share 5% and profit
ratio 5% by 2021.
10
HMM
Global Top 5
2M Alliance Started in April 2017
- Unit cost reduction
- Availability for developing new
service
- Increase service frequency
- Strengthen competitiveness for east-
west trade
K2 Consortium Started in March 2017
- Increase loadability
- Strengthen competitiveness
in Asia trade
Terminal acquisition
- TTI Longbeach in Feb.`17 (share 20%)
- TTI Seattle in Feb. `17 (share 20%)
- HPC Kaohsiung in Feb. `17‘(share 100%)
- TTIA Algeciras in May `17(share100%)
- HPC Tokyo in progress (share 100%)
IT Strategy - Customer satisfaction
- Industry 4.0
(Blockchain, Cloud, Iot, Bigdata)
- Advanced IT infrastructure
- IT Governance management
- Network/security
Maximize profit
- Expand service route between
North America WC-Asia
Global Top 5(’17.4)
- Develop new customer/cargo
- Increase Match-Back performance
- Expand regional business network
- Flexible fleet operation
▶ Diversity service profile and reduce cost by leveraging 2M Alliance, K2 Consortium
▶ Secure profit and reduce cost by acquiring terminal in main route
▶ Increase work process and customer satisfaction by IT renovation
▶ Strengthen business Competitiveness and recover customers` confidence by
maximizing profitability
2017 Environmental Report
■ 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
management system.
GHG emission Reduction
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 60%
greenhouse gas emission reduction by 2020 based on 2008 performance(unit : CO2 g/TEU-KM).
The company promotes operational optimization with the installation of on-board Energy
Efficiency Monitoring System(EEMS)
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
activities by actively participating in green management forums and seminars domestic and
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.
Build green-house gas inventory
Analyze reduction goal and potential
amount
Introduce emissions
trading
Enter into carbon market
Climate change counteracting
strategic roadmap
2017 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.
Hyundai Merchant Marine Co., Ltd. 13
Role of Organization
Organization Main Roles
Green Environment
Safety Committee
• Determine entire company green environment safety policy and strategy
• Study relevant facilities and investment direction to improve green environment
and health & safety quality
• Review appropriateness of green environment and health & safety
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
Working committee
in each ship
management group
• Execute green environment safety committee upon each ship management group‟s feature
• Discuss, determine environment safety main issues
• Share green management excellent cases and pursue sustainable development
• Analyze and respond domestic & overseas environment safety trend
Ship Green
Environment
Safety Committee
• Set practice plan for green environment management and prevention of accidents
• Set safety measure for identified risks
• Set plans for emergency practice, environment protection and safety training
Green
Management
Working Group
• Respond to global environmental issue
• Review new green business
• Study eco-friendly logistics strategy
• Respond to shippers and interested persons
2017 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.
• 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
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.
• Acquire ISO14001
• Waste material
control
• Environment
program
• No oil spill
• SOPEP
• GEEMS
• GMS
• Set medium & long-term
goal
• EEOI / EEDI
• SEEMP
• Verify fuel efficiency
• Green Ship
• Review CDM
• Expand R&D
participation
• Establish reduction
goal
• Emissions trading
• Participate in CDM
• Green growth new
business
• Carbon assets
management
• Prepare SRC
Introduction
1996~2009
Growth
2013~2015
Development
2010~2012
Take Off
2016~
Promotion Direction
Hyundai Merchant Marine Co., Ltd. 15
■ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Green Environment KPI
Ships
Division KPI
Air pollution Green-house gas, SOx, NOx, Ozone depletion material, VOCs, Exhaust gas/soot/dust
Water pollution No oil spill, Use anti-fouling paint, Ballast Water, Gray Water, Sewage
Waste control Waste oil, plastic, garbage, food waste
Resource control
Reduction oil use, synthetic detergent, disposable paper cup, water
Award program Environment excellent ships, Green Ship, Green Flag
Inland (Offices)
Division KPI
Operational
resource Amount of use of oil for vehicles, Paper usage, Greenhouse gas emission
Hyundai Merchant Marine achieved the internal Green Management KPI target and will endeavor to
achieve target in 2017. 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.
Website for the results and goals :
http://www.hmm21.com/cms/company/korn/introduce/ism/plan/index.jsp
Unit : g/Ton·Km
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. However as there are significant difference among
ship type and size, the company has revised GHG emission reduction target for container ships, which
account for 80% of total emission. Consistent efforts will be made to reduce the GHG emission up to
60% based on 2008 record by 2020 in intensity unit, Actually the company has reduced 51.4% till 2016
comparing with 2008 in intensity unit.
2017 Environmental Report 16
Result Plan
YEAR 08Y 09Y 10Y 11Y 12Y 13Y 14Y 15Y 16Y 17Y 18Y 19Y 20Y
CO2 78.0 69.6 68.7 65.4 58.3 49.2 43.7 43.4 37.9 36.2 34.5 32.8 31.2
2017 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.
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, Health & Safety, Quality
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 involvement
Appropriate resource arrangement
Participation of overall employees
Clear definition and documentation of
responsibility, right and mutual relationship
Emergency response plan
Consistent improvement
Hyundai Merchant Marine Co., Ltd. 19
□ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
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.
Green Environment 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
OHSAS
QMS
SMS EMS
GMS
GHG, Energy,
Resources & Social
Responsibility
ISO 50001
ISO 14001
Environmental
Management
System
Occupational
Health & Safety
Management
System
ISM CODE
Safety
Management
System
ISO9001
Quality
Management
System
Integrated Management System
ISO 14001 + ISM CODE + ISO 9001 + OHSAS 18001 + GMS + ISO 50001
Integrated Management System
2017 Environmental Report 20
□ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Hyundai Merchant Marine has announced the green environmental management policy and has
implemented the green environmental plan to reach the goal.
Green Environment Plan
Air Pollution
Marine
Pollution
Resource and Waste Manage
ment
• Reduce CO2 emission • Reduce NOX emission • Reduce SOX emission • Reduce VOCS emission • Reduce ozone depletion
material • Reduce exhaust/soot/dust
emission
• Use fuel oil • Power consumption • Energy use amount • Waste oil • Synthetic detergent • Plastic • Foods • Garbage
• Chemicals control • Ballast control • Heavy water/waste
water/bilge water control
• Prevent oil pollution • Anti-fouling paint
Core Management Factors
Core Management Factors
Hyundai Merchant Marine Co., Ltd. 21
□ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
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
Consultant
On-scene Action Team Emergency
Response team(ERT)
Director of emergency response
team(ERT)
Ships
Responding System to Environmental Accidents
Organization Main Roles
Director of ERT
• 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
plan
• Report handling status and results to management
• Other necessary matters for handling emergency situation
Emergency
Response
Team
• Central communication
• Planning ship‟s seaworthiness and life safety measure
• Close liaison with external salvage institutions
• Work coordination toward government office and authorities
On-scene
Action
Team
• Control the on-scene situation
• Direct ship salvage/cleanup operation on site
• Other necessary matters for site affairs
Role of Each Organization
2017 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.
Hyundai Merchant Marine Co., Ltd. 23
□ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
2017 Environmental Report 24
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
Division
2014 Y 2015 Y 2016 Y
Participation
(person) Hours
Participation
(person) Hours
Participation
(person) Hours
I n t e r n a l
Captain/chief engineer RC - - 61 976 73 584
First Officer RC 15 360 39 312 36 288
Ship administrator(Captain) 3 48 4 64 4 64
Ship administrator(C/engineer) 3 48 5 80 5 80
Ship administrator PDOS 164 1,312 108 864 91 728
First Officer PDOS 136 1,088 102 816 97 776
C o m
m I s s I o n e d
MARPOL I 30 480 30 480 20 160
Contamination prevention Manager
14 288 15 256 14 272
Total 365 3624 364 3848 340 2952
□ Green Management Strategy ■ Green Management System □ Green Activity & Performance □ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 25
Evaluation of Green Environment Performance
Hyundai Merchant Marine continuously improves the green environment activities by applying evaluation
indicators.
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
Evaluation Index
2017 Environmental Report
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 27
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.
In 2016, total cost of MRO products were decreased comparing with 2015. HMM plans to increase
the amount of green product purchase in 2015.
MRO Product
Raw material includes fuel oil consumed by vessels. In 2016, purchase ratio of green product was
8.5%. HMM plans to increase the purchase of green products by using eco-friendly fuel.
Raw Materials
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
MRO product cost 31 27.8 25 14.2 10.4
Green product purchase among MRO product 1.79 1.10 0.3 0.68 0.83
Purchase percentage of MRO green product 5.8 4.0 1.2 4.8 7.9
(Unit : mill. USD)
Year 2012 Y 2013 Y 2014Y 2015 Y 2016 Y
Raw & subsidiary materials purchase 1,717 1,247 934 485 341
Green product purchase among Raw & subsidiary materials
74.9 82.4 62.7 51.4 28.9
Purchase of green product(MT) 98,688 117,271 94,178 101.3 76.4
Purchase percentage green product(%) 4.36 6.6 6.7 10.6 8.5
(Unit : mill. USD)
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Use of Water
2017 Environmental Report 28
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.
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Water supply and evaporation 230 226 156 133 -
Water consumption 228 222 153 133 -
Consumption/(Supply & Evaporation) 99.1 98.2 98.1 100 -
(Unit : 1,000 ton)
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 2016 over
2015. Energy efficiency per ship was also improved to provide transportation services more efficiently.
Division 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Heavy Fuel Oil 101,523 79,703 66,605 62,146 57,820
Marine Diesel Oil 1,259 893 1,042 1,183 713
Total 102,782 80,596 67,646 63,629 58,533
• Based on purchase record.
Ships
Inland
(Unit : TJ)
Division 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Diesel 0.2628 0.3489 0.3327 0.2973 0.2420
Electricity 228 246 245 226 114
Gasoline 0.0242 0.0332 0.0315 0.0284 0.0462
LNG 0.0202 0.0210 0.0208 0.0209 0.0087
Total 227.8 246.7 245.1 226.1 114.3
(Unit : TJ)
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Climate Change
The UNFCCC 21st meeting, taken placed in 2015, is remarked as opening new stage for GHG emission
reduction. To limit the temperature increase up to 2°C comparing with pre-industry era, almost
countries will endeavor to follow agreement, including reporting Intended Nationally
Dedicated Contribution, helping developing countries with fund amount of 100 million USD
annually.
Even though there is no specific duties for shipping industry in agreement, the industry is of
the view that shipping may face various requirements for reducing GHG emission from
ships. In this regard, IMO MEPC 71(July 2017) will initiate drafting GHG reduction strategy.
HMM will take proactive cooperation with member states as advisor to government during MEPC 71.
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
03.2013
Awarded with Prize for Carbon Management Industry Leader Conducted modification of bulbous bow of containerships first in Korea
04.2013 Received verification of GHG Inventory as well as CCWG Environment Performance
Hyundai Merchant Marine Co., Ltd. 29
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
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.
2017 Environmental Report 30
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
05.2015 Received verification of GHG Inventory as well as CCWG Environment Performance
10.2016 Received verification of GHG Inventory as well as CCWG Environment Performance
04.2017 Received verification of GHG Inventory as well as CCWG Environment Performance
□ 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.
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.
• Supply Chain Carbon Calculator „s website address : http://geems.hmm21.com/Calculator/Calculator.aspx
Hyundai Merchant Marine Co., Ltd. 31
□ 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.
2017 Environmental Report 32
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 33
Use and Emissions of Ozone Depleting Substance
Ships use various refrigerants in freezers, air-conditioning units, unit-coolers and refrigerated
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.
Refrigerant Restriction Status
Ozone Depletion
Substance Record
Ozone Layer
Destruction Materials
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Ozone Depleting Substance 1,702 2,132 790 536.7 605.5
(Unit : ㎏)
Refri gerant
Restriction Remarks
IMO EU Others
R-22
• MARPOL Annex VI - Prohibit willful discharge
(allow minimum) - Control available for leakage - Maintain ODS record
• EU Directive 05/2009 - Check leak on EU port call
- Require prior approval upon refrigerant shipping - Ban on use after 2015.1.1
• Montreal Protocol - Limit R22 production
(till2010.1.1) - Limit shipping upon Europe call ship • Each country‟s restriction
Ozone Depletion substance (HCFC)
R-134a R-404a R-417a
• No restriction - Discussion on greenhouse gas restriction is under way, but only CO2 is being discussed
• EU Directive 40/2006 - Car-use refrigerant . Limited in 2011 . Prohibited full in 2017 (replace with R-744a) - Discussing on expansion to other industry
• Climate change convention - Restrict as one of 6 big greenhouse gases(EU-ETS not included) - Acknowledge collection technology CDM • Each country is discussing restriction
Green house gas
(HFC)
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Emission of Air Pollutants
Hyundai Merchant Marine has made efforts to reduce Nox emission by changing fuel-injection valve
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.
2017 Environmental Report 34
Management of NOx Emission
Management of SOx Emission
Hyundai Merchant Marine has installed Vapor Emission Control System(VECS) to avoid volatile air
emission from oil tankers.
Management of Vapor Emission
Management of PM 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.
AMP System
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
NOx emission 216,311 169,630 142,336 133,224 123,186
(Unit : ton)
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
SOx emission 136,135 106,854 89,362 83,428 77,531
(Unit : ton)
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
PM emission 16,887 13,255 11,084 10,347 9,617
(Unit : ton)
• PM : Particulate Matter
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.
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 35
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.
Category 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Scope 1(Direct GHG Emissions) 8,026,113 6,303,853 5,314,633 4,953,675 4,578,274
Scope 2(Direct GHG Emissions) 26,615 27,758 28,449 27,009 11,915
Waste oil recycling 6,483 5,203 4,097 - -
Total GHG emission 8,046,245 6,326,408 5,338,985 4,980,684 4,590,189
(Unit : tCO2-eq)
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
Scope of Verification
KS Q ISO 14064-1:2006
KS Q ISO 14064-3:2006
GHG Protocol(WBCSD/WRI, 2004)
Verification Approach
CO2
CH4
N2O
Greenhouse Gases
GHG emission
2015 Environmental Report 38
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Management of Water Pollutants
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.
Ballast Water Management
Hyundai Merchant Marine has installed bilge oil treatment system for all ships and monitors the oil
contents level down to 15 ppm.
Bilge Management
CASE Ⅰ
CASE Ⅱ
Hyundai Merchant Marine Co., Ltd. 37
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
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.
Management of Gray Water and Sewage
Status of Restriction on Gray Water and Sewage
Division Status of Restriction
Remarks IMO USA
Gray
Water
• No special restriction on Gray
Water
• Minimize emission of EPA 2008
VGP (but, prohibit emission in
Great Lakes)
• Special condition
- New York: Ban on all Gray Water
emission within 3miles after
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
• EPA has strengthened monitoring
of Gray Water for all ships
Sewage
• Ban on emission within
12miles from near inland
• Special condition
- Baltic Sea: Ban on
emission limited to liner
• Ban on untreated sewage emission
within 3miles from coast by U.S
Federal law
• Each state‟s special condition
- California: Ban on all sewage
emission within 3miles from coast
after 2012.3.28
2017 Environmental Report 38
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
Waste Material Emission and Recycling
As plastic incineration is strictly prohibited onboard ship in accordance with 73/38 MARPOL
regulation, Hyundai Merchant Marine has recycled entire plastic waste. For other kinds of
wastes, HMM prohibits using incinerator during coastal navigation or anchoring.
Plastic Waste
Hyundai Merchant Marine reuses drain oil by cleaning again. The company treats the sludge by
landing to certified subcontractor ashore.
Recycling of Waste Oil
Plastic Landing
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.
Plastic Compressor
Hyundai Merchant Marine Co., Ltd. 39
□ 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.
2017 Environmental Report 40
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
• 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.
Hyundai Merchant Marine Co., Ltd. 41
□ 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
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.
Automated Transfer Crane
2017 Environmental Report 42
Photovoltaic System
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.
Tandem Crane
Solar Energy
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.
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
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
Radio Frequency Identification
Optical Character Recognition
Radio Data Transfer
Hyundai Merchant Marine Co., Ltd. 43
AMP(Alternative Marine Power) 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.
AMP System
□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product
2017 Environmental Report 44
Toxic Chemicals
As ship paint prevents marine creatures from attaching, the paint used for the outside of hull has
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 and Chemical
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
Eco-Friendly Paint and Chemical
Eco-Friendly Paint
Division 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Tin Free Paint painting(ship) 21 20 13 2 7
2017 Environmental Report
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 47
Natural Ecosystem Conservation Efforts
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(Collect Waste Mobile Phone)
Afforestation
Afforestation
We have been selected as the best volunteers from Seoul Volunteer Center with the event to
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.
Green Box
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
2017 Environmental Report 48
Year 2012 Y 2013 Y 2014 Y 2015 Y 2016 Y
Green Purchase 76.69 83.5 63.0 52.1 29.7
(Unit : mill. USD)
Management of Eco-Friendly Supply Chain
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.
Green Purchase
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.
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.
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Greenhouse Gas Verification Greenhouse Gas
Verification Statement
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 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.
Clean Shipping Index
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.
Green Ship Certificate
Hyundai Merchant Marine Co., Ltd. 49
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.
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 company receives verification for GHG inventory from 3rd party each year.
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
GMS Certificate Green Management System(GMS) Certification
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 Prize of Minister of Land, Transport and Maritime Affairs
We were awarded with the prize by Ministry of Land, Transport and Maritime
Affairs in recognition of active cooperation with resect to environmental
protection.
Awards
Awarded with Prize for Carbon Management Industry Leader
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.
Carbon Management
Industrial Leader Award
Awarded Samsung Electronics‟ Best Partner Prize
Hyundai Merchant Marine received Best Partner prize, being acknowledged with
green management at logistics forum held by Samsung Electronics.
Best Partner Prize
2017 Environmental Report 50
Eco-Friendly Excellent Ships
Certifications Green Flag at Los Angeles/Long Beach.
Granted a USCG Qualship21.
Designated “Green Ship” by National Maritime Police Agency.
□ 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)
Secured Experts in Carbon Emission Rights Trade System
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.
Hyundai Merchant Marine Co., Ltd. 51
2017 Environmental Report 52
Individual course for bridge, engine, safety and cargo operations using advanced facilities
Oily Water Separator Fire Extinguishing System Safety Equipment Valve Equipment
PID Control Simulator Pne. & Hyd. Control Simulator Steam Turbine Simulator Elevator
ERS MSBD/ESBD Engine Equipment Refrigeration Simulator
SHS (3 Bridge System) ECDIS GMDSS LNGC Simulator
Crew Training Center
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 53
Green Communication Activities
Hyundai Merchant Marine has cooperated with Korean Register to be certified as auditor for EU
MRV, which will be taking place in 2018. By this cooperation, it may convenient for Korean
shipping companies to comply with EU MRV requirement.
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.
Cooperation with KR to be certified as auditor for EU MRV
Carbon Disclosure Project
KORMARINE Conference 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 „ENERGY EFFICIENCY
INDICATOR‟.
Participated in KORMARINE 2015
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.
Published Greenhouse Gas Emission Booklet Published a Book
KORMARINE 2015
EU MRV MONITORING PLAN
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
2017 Environmental Report 54
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 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
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.
Participate in World Shipping Council World Shipping Council
Clean Shipping Project
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.
Communication with customers
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
Hyundai Merchant Marine Co., Ltd. 55
Status and Respond to International Environmental Regulation
Ozone Depleting Substances
HCFCs banned
NOx
Tier 2
2020
2011
Tier 1
2014 2016
Tier 3(ECA)
Tier 4 US EPA (Cat 1 & 2)
MARPOL US EPA Cat 3
SOx
0.5 % S
2012
4.5% S
2015
0.1% S
0.1 % S EU Ports
MARPOL ECA
2010 2020/2025
3.5 % S
1 Aug 2012(USA/Canada)
1.0% S
1 Jul 2010
MARPOL Global
1.5% S
0.1 % S
CARB
1 Jul 2010
ODS Record Book has been required since 1 July 2010
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.
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
2017 Environmental Report 56
EEDI, SEEMP
~ became mandatory since January 1, 2013
EU GHG Monitoring, Reporting and Verification
Start GHG Monitoring since January 1, 2018
GHG Data Collection System
Start GHG data collection since January 1, 2019
Ship Recycling Convention
Entry into force is now expected over 2020
VOC Management Plan
2020 1 Jul 2010
VOC Management Plans have been required since 1 July 2010
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 will be
lowered to 0.5% from 3.5% since 2020 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.
0
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
Entry into force since September 8, 2017
EU Ship Recycling Regulation
Entered into force since December 30, 2013
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
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 by 2022.
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.
Hyundai Merchant Marine Co., Ltd. 57
□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product
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.
Institution Laws Contents Adoption Taking effect
Remarks
UNEP
Basel Convention Ban on harmful material move
1989 1992 • Korea
ratification
Basel convention‟s ban amendment
Mandatory disposal of harmful materials before scraping
1997
-
• Korea not ratified
• Europe only ratification
ILO ILO Guideline
Guidance for ship scraping laborers‟ safety
2004 -
IMO Ship recycling
convention
Define liability and duty of related persons upo
n ship scraping
2009 -
• No ratified country
EU
EU Regulation
1257/2013
Inventory of Harzadous Material, Use of ship scrapping facility approved by EU
2013 2013
Legal Regulations
2017 Environmental Report 58
2017 Environmental Report
Division Items A B C Reduction
Potential (%)
Hull tolerance reduction
improving facility
Hull Cleaning/Blasting ● ● ● 1~3
Propeller polishing ● ● ● 1~3
Bulbous Modification ● 4~7
Fuel saving paint ● ○ ● 3~5
Propeller efficiency
improving facility
PBCF installation ● ● ● 3~5
Twisted leading edge rudder ● 1~3
Propeller Silicon Painting ● 1~3
Mewis Duct ○ ● 5
Engine efficiency
improving facility
Main engine slide valve ● ● ● 1.5
Electronic Engine ● 2
Fuel Oil Additive ● 1~3
Main Engine De-rating ● 4
Sludge/fuel reduction facility Homogenizer ● 1
Operating facility
Energy consumption
Optimizer system ● 5
Super slow steaming ● ● ● 25~40
Provide energy save operation/skill
guidance ● ● ● -
LO consumption
ALPHA lubricator ● ● ● 10~30
Cylinder oil FROP ● 1~5
Facility change M/E T/C
Cut-off
Blind type ● 2~3
Slow steaming kit ● 1~5
Hyundai Merchant Marine Co., Ltd. 61
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
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.
A: Container B:Tanker C:Bulk ●: Applied, ○: Reviewed
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Hull tolerance reduction improving
Engine efficiency improving
Operation efficiency improving
① Hull optimization
② Bow modification
③ Hull/Propeller cleaning
④ Hull coating
⑤ Micro bubble
① Weather routing
② Trim optimization
③ Performance monitoring
④ Slow steaming
Others
① WHRS
② Shaft generator
③ LNG fuel engine
④ Homogenizer
⑤ Energy Saving System(ESS)
⑥ Alpha lubricator
⑦ LED lamp
⑧ Mass flowmeter
⑨ Fuel Oil Additive
① M/E De-rating
② Electronic Engine
③ T/C Cut off
Propeller efficiency improving
① Pre-Swirl Stator
② Mewis duct
③ Propeller Boss Cap Fin
④ Rudder fins
2017 Environmental Report 62
Hyundai Merchant Marine Co., Ltd. 63
□ 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
A
fter
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
2017 Environmental Report 64
Propeller Polishing
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
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‟.
Hyundai Merchant Marine Co., Ltd. 65
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Propeller Boss Cap Fin
Trim Optimization
Slow Steaming
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 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
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.
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
2017 Environmental Report 66
Anti-fouling Paint
Mewis Duct
AMP System
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
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.
Improvement Propelling Efficiency
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.
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.
Alternative Maritime Power 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.
□ 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 was installed to minimize CO2 emission and maximizes fuel
efficiency.
PSS
Becker Rudder
ESS
Fuel Saving Paint
BWTS
Required EEDI : 16.0 Attained EEDI : 8.5
Hyundai Merchant Marine Co., Ltd. 67
Hyundai Merchant Marine reviews eco friendly technology to curve air pollution including particular
matter. In this regard the company considers to adopt technology e.g. clean energy, exhaust gas
cleaning system for both new building and existing ships, which may help preserve and protect ocean
environment. And as regulatory certainty shall be established before adopting eco friendly technology,
the company encourage interested parties to ensure the regulatory perspectives by joining various
seminar, meeting etc.
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
Green Technology Research Activities
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.
Built Green Ships TCS 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.
Development of Ship Life Cycle Management System
2017 Environmental Report 68
Energy efficiency increasing
technology
Greenhouse gas emission reducing
technology
New recycling energy grafting
technology
Design evaluation and functional
evaluation Certification
Green ship TCS system
Test/Verification Standard Certification
• Identify green ship TCS object
technology
• Build test facility for technical
verification
• Effect analysis and verifying
actual ship
• Develop design evaluation
standard
• Develop functional evaluation and
standard
• Verify safety
• Develop certifying technology
• Build int‟l certification system
• Develop certifying technology post
management system
• Global Standard [IMO acvitity]
Interface with key
systems
Life cycle combined information
management system
History
management
Life cycle management
applying
Shipyard A
Shipyard B
Shipyard C
Production
• Drawings
• 3D model
• Function
interpreting
material
• Paint
• Thickness
• Welding status
• Recycling
Ship & ocean
combined
information
model
2~3 years Over 25 years
Operation
• Sailing
• Maintenance
• Test
• Repair
• Damage
• Recycling
• PSC
• System status
monitoring
• Remained life
prediction
• Maintenance plan
• Test plan
• Accidents responding
technology
• Decision-making support
Ship/ocean data
combining platform
•Large amount data
processing technology
Shipyard
•Management /AS after
delivery
•Create new business
Shipping company
•Efficiency of navigating
•Save maintenance costs
Ship classification
•Increase test quality
•Secure safety
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
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.
Hyundai Merchant Marine Co., Ltd. 69
Greenship Technology Collaboration
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
Co-development Scope
□ Green Management Strategy □ Green Management System □ Green Activity & Performance □ Green Community ■ Green Product
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.
Development of Energy Efficiency Monitoring System
2017 Environmental Report 70
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
2017 Environmental Report
Report Index
Ministry of Environment‟s guideline of environmental report Applied
level Contents
1. Summary
1.1 CEO‟s declaration ● 3~4
1.2 Company overview ● 5~10
1.3 Summary of environmental report ● Summary of report
1.4 Sketch ▲ Summary, 3~4
2. Environment vision and strategy
2.1 Environment policy ● 12, 15
2.2 Medium & long term environmental goal ● 15
2.3 Environment goal achieving results of the year ● 16, 27~44, website
2.4 Next year‟s environmental goal ● 16, website
3. Environment management system
3.1 Environment management system ● 19~21
3.2 Environmental accidents responding system ● 22
3.3 Environmental audit ● 23
3.4 Environmental education ● 24
3.5 Environmental results evaluation (EPE) ● 25
3.6 Environmental accounting ▲
3.7 Outside environmental investment ▲
4. Environmental effects and
results
4.1 Resource use ● 27
4.2 Water use ● 28
4.3 Energy use ● 28
4.4 Response to climate change ● 29~32, 35
4.5 Use and emission of ozone depletion substance ● 33
4.6 Emission of air pollutants ● 34
4.7 Emission water contaminants ● 37~38
4.8 Discharge and recycling waste ● 39
4.9 Soil pollution control ▲
4.10 Environmental effects evaluation ● 40~41
4.11 Eco-friendly products ● 42, 61~68
4.12 Eco-friendly package ● 42, 61~68
4.13 Eco-friendly transport ● 42~43
4.14 Health•Safety ▲
4.15 Noise•Vibration ▲
4.16 Toxic chemicals management ● 44
5. Partnership of interested person
5.1 Natural ecosystem preservation efforts ● 47
5.2 Eco-friendly supply chain control ● 48
5.3 Law observation ● Nothing
5.4 Certifications•Awards ● 49~51
5.5 Environmental communication activities ● 53~54
5.6 Response to int‟l environmental restriction ● 55~58
6. Appendix
6.1 Report Index ● 73
6.2 3rd party verification opinions ▲
6.3 Definition of term ● 75~76
Hyundai Merchant Marine Co., Ltd. 73
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2017 Environmental Report 74
Term Explanation
CCWG(Clean Cargo Working Group)
As an affiliated organization of BSR(Business for Social
Responsibility), non-profit group composed with
shipping companies and shippers who voluntarily acts
to analyze social and environmental aspects and to
protect global environment in relation to transport
CDM(Clean Development Mechanism)
Greenhouse gas reduction business system jointly
promoted by advanced and developing countries for
alleviation of global warming status according to
restriction of article 12 of Kyoto Protocol adopted at
general meeting of Climate Change Convention
CDP(Carbon Disclosure Project)
A global project performing research analysis based on
companies management strategy in medium & long
term view of carbon emission(or greenhouse gas
emission) related exact information and relevant issue,
a main factor of „Climate Change‟, from world‟s main
listed companies, on behalf of finance/investment
institutions including fund investment institutions in the
world.
EEDI(Energy Efficiency Design Index)
Reflect on factors like main feature of ship design,
engine performance and trial operation result, as an
engine efficiency index upon ship design.
EEOI(Energy Efficiency Operational Indicator)
As an fuel efficiency index of actual navigation, the
standard of fuel consumption used to transport unit
cargo to as much as specific distance.
GEEMS
As an abbreviation of Green Energy Efficiency Management
System, Hyundai Merchant Marine‟s greenhouse gas
general management system that can in real time monitor
and analyze greenhouse gas emission discharged through
business activities.
GMS(Green Management System)
Management system that fulfills social, ethical responsibility
while minimizing greenhouse gas emission and
environmental pollution, saving and effectively using
resources and energy in company‟s management activity
GRI(Global Reporting Initiative)
An international institution who suggests guideline of
sustainable reports. Sustainable reports means the report
that contains responsibility for company to take for
environmental and social problems.
IPCC(Intergovernmental Panel on Climate Change)
A panel between governments for climate change.
Organized in 1988 with experts of each country under UN to
review general countermeasure especially for greenhouse
among global environment. This ultimately aims at entering
global greenhouse preventing convention, while reviewing 3
working groups of greenhouse‟s scientific evaluation,
influence on environment and society and its response.
IMO(International Maritime Organization)
UN‟s specialized institution installed to globally unifying
ship‟s navigational route, traffic and harbor facilities.
Hyundai Merchant Marine Co., Ltd. 75
MRO Product
Various office equipment and consumables used in
maintenance, repair and operation.
MARPOL
International Convention for the prevention of marine
pollution from ships. Also called MARPOL 73/78 and an
international convention and its related 1978 Protocol
for prevention of pollution by ships adopted by
international maritime organization
MEPC
As an abbreviation of Marine Environment Protection
Committee, one of 5 committees installed inside IMO in
UN. This committee performs function of deliberation of
issued to prevent and restrict marine contamination by
ships and adopting and amendment of international
convention
NOx (Nitrogen Oxide)
As a compound of nitrogen and oxygen, happens when
nitrogen in air gets oxidized in high temperature in
combustion. 7 kinds are known and the most important
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.
SOx(Sulfur Oxides)
It means sulfur oxide mainly SO2 and SO3 consist of it.
Generally there are much of SO2 in emission gas, though
both of SO2 and SO3 happen when sulfur or fuel that
contains sulfur burns.
VOCs(Volatile Organic Compounds)
This volatizes in air causing odor and ozone, and means
hydrocarbon compound, a carcinogen which cause disorder
in nervous system through skin contact or inhale. Commonly
call benzene, formaldehyde, toluene, ethylene, styrene and
acetaldehyde
Greenhouse Gas
Gas which cause greenhouse effect among several gases
which form air. The representing gases are CO2, CH4, N2O,
HFCs, PFCs, SFs
GHG Inventory
Operational system that systematically controls greenhouse
gas emission source with listing in each facility, process,
business place so as to statistically control company‟s
greenhouse gas emission.
2017 Environmental Report 76
Hyundai Merchant Marine Co., Ltd. 77
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)
2017 Environmental Report 78
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” Opened a Container Terminal at the Port of Rotterdam 2016 Starts a Korea-Cambodia Direct Service Launch a new joint loop that connects China, Korea and Russia with FESCO and CMA CGM Secured 6 Vessels of 10,000TEU Form „Mini alliance‟ with other Korean carriers Mr. Yoo Chang-Keun was appointed as new CEO Opens Direct Sea Line to Vietnam Preferred Bidder for Algeciras Terminal in Spain HMM, Maersk Line and MSC create a new strategic cooperation 2017 Form „HMM + K2 consortium‟
Hyundai Merchant Marine Co., Ltd. 79
Overseas Organizations
HMM Europe
HMM [Europe], Ltd.
London
Southampton
Birmingham
Manchester
HMM [Deutschland] GMBH
Frankfurt
Bremen
Duesseldort
Muenchen
Poland
HMM [Netherlands] B.V
HMM [Belgium] N.V
HMM [France] S.A
Paris
Marseille
Lyon
Strasbourg
HMM [Scandinavia] AB
Sweden [Gothenburg]
Denmark [Copenhagen]
Norway [Oslo]
Finland [Helsinki]
HMM [Italy] S.R.L
Milan
HMM [CIS] LLC
HMM [Austria] GMBH
Czech [Prague]
Hungary [Budapest]
HMM South-East/West Asia
HMM [Singapore] Pte. Ltd.
Singapore
HMM [Thailand] Co., Ltd.
Laem Chabang
Songkhla
HMM [Malaysia] Sdn. Bhd.
Penang
Johor Bahru
HMM [India] Pvt. Ltd.
New Delhi
Chennai
HMM [Vietnam] CO., Ltd.
Ha Noi
Hai Phong
HMM [Chittagong]
HMM [Australia] Pty., Ltd.
Melbourne
Brisbane
Adelaide
HMM [Japan] CO., Ltd.
Osaka
HMM [Hong Kong] Ltd.
Shenzhen
Guangzhou
Xiamen
Hyundai Ocean Pioneer Shipping Agency CO., Ltd.
HMM [Taiwan] CO., Ltd.
HMM [U.A.E] LLC
HMM [Jakarta]
HMM China
HMM [China], CO., Ltd.
Shanghai
Qingdao
Tianjin
Dalian
Ningbo
Nanjing
Chengdu Global DOC Center
HMM America
HMM [America], lnc.
Hyundai America Shipping Agency. lnc
HASA lrving
HASA L.A
HASA San Francisco
HASA Houston
HASA Dallas
HASA Seattle
HASA Portland
HASA Vancouver
HASA Toronto
HASA Chicago
HASA Cleveland
HASA Cincinnati
HASA Kansas City
HASA St. Louis
HASA Minneapolis
HASA New Jersey
HASA Boston
HASA Atlanta
HASA Memphis
HASA Charlotte
HASA Phoenix RCSC
HASA Chicago RCSC
HASA Charlotte RCSC
Hyundai Intermodal, lnc.
California United Terminals, lnc.
Washington United Terminals, lnc.
HMM [Sau Paulo]
Emissions Calculation For greenhouse gases and other air pollutants
Performance Reporting Annual Environmental Performance Survey (EPS)
Performance Improvements Promote environmentally responsible practices and continual improvement
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