Environmental Report 2017 - Hyundai Merchant Marine - …E)_1.pdf · Environmental Report 2017 ... Hyundai Merchant Marine Co., ... Strategy of strengthen competitiveness of Korea

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.


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.


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”.


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


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


※ 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.


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



Green Management Organization

Hyundai Merchant Marine has „Green Environment Safety Committee‟ headed by CEO to set

medium & long-term goals for green management, and periodically evaluates the performance.

Green Environment Safety Committee has sub committees composed of newbuilding, operation,

IT and environment experts. In addition to the Committee, Green Management Working Group

is working on technical issues which need inter-departmental collaboration.


Role of Organization

Organization Main Roles

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



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



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.


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


□ 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‟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



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 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



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.




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



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


□ Green Management Strategy □ Green Management System ■ Green Activity & Performance □ Green Community □ Green Product


Use of Resources

Hyundai Merchant Marine consumes significant amount of MRO products and raw materials in

relation to its fleet operation. To reduce the negative impact on environment, HMM controls the use

of resources, and gradually increase the use of certified green product.

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)


Use of Water


It is unavoidable that Hyundai Merchant Marine consumes significant amount of water for the purpose of

machinery cooling and human consumption. HMM strives to reduce environmental impact by restraining

supplying water from shore and using distilled water onboard ship.

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)


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



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.


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


10.2014 Awarded prize for Carbon Management Industry Leader from CDP Korea 4 years in a row





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



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.




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)


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.


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.



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




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 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



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



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.



• 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.



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


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.


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


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



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


□ Green Management Strategy □ Green Management System □ Green Activity & Performance ■ Green Community □ Green Product


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



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.


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


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.


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


Eco-Friendly Excellent Ships

Certifications Green Flag at Los Angeles/Long Beach.

Granted a USCG Qualship21.

Designated “Green Ship” by National Maritime Police Agency.


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.



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 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



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



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.



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


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.



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



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


□ 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


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




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



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‟.

http://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=YewrXgXPclk8JM&tbnid=0Kw-tNIe0IXtgM:&ved=0CAUQjRw&url=http://gcaptain.com/technology-solutions-hull-clean/&ei=GnliUYT4H9CRiQe254DwAQ&psig=AFQjCNGcYpDt8a2d9COTuB14nhirnNUXTA&ust=1365494383287170



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.

http://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cx7IOYuMhPG1WM&tbnid=f_Em73uz-y_YgM:&ved=0CAUQjRw&url=http://gcaptain.com/dirty-ship-expensive-ship-operate/&ei=IUtjUbaICIeziQfIloDwAg&psig=AFQjCNHa8FCsT-BMGfH_in-ZjkQBZRMQ9A&ust=1365548188307595



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.

http://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FVPgbn7TKqCgTM&tbnid=DCY9VDVEtp6zqM:&ved=0CAUQjRw&url=http://www.paintsquare.com/news/?fuseaction=view&id=6507&ei=73liUeTcApCZiQfLv4CYAw&psig=AFQjCNHQIyNk1GGzi2UD1JUd4LdUuPm6xg&ust=1365494630057483

http://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0oHoPhGE4_vJwM&tbnid=_IDNplZdsbXXzM:&ved=0CAUQjRw&url=http://www.skipsrevyen.no/artikler/artiklr-5-2010/135558.html&ei=-UpjUZP0MIaCiQe_74HICQ&psig=AFQjCNHIh1qpep9ktob7EE8_HqwxbBXfXg&ust=1365548143536670


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 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 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


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


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.


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


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


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


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


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Please write following matters if you want to receive next report.

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□Staffs & executives □Shareholder □Financial institute □Customer □Cooperative company

□NGO □Academy circle □Government □Press □Other

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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.


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.



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)


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‟


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

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