Climate Change Data

Pan Ocean Co., Ltd.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6,408,538 tCO2eq/year (Scope 1, 2, 3)
Scope 1 Emissions:2,669,080 tCO2e/year
Scope 2 Emissions:483 tCO2e/year
Scope 3 Emissions:3,738,975 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:848,790 TOE/year
Water Consumption:5,703 m3/year
Waste Generated:29,695 tons/year
Carbon Intensity:46.831 tCO2eq/KRW 100 million (2022)

ESG Focus Areas

  • Climate Change Response
  • Greenhouse Gas and Energy Management
  • Strengthen OSH Management
  • Air Pollution Control
  • Establishment of Human Rights Management System
  • Ethical and Compliance Management
  • Secure and Foster Talents
  • Enhance Anti-Corruption Activities
  • Establishment of Sustainable Business Governance

Environmental Achievements

  • Total emissions reduced by 88,380 tCO2eq compared to 2021, with a 31% reduction in emissions intensity
  • Issued the first-ever green bond in the domestic shipping industry with a size of 50 billion KRW
  • BWMS installation completed on 105 vessels by June 2023; plan to expand to all vessels by 2025
  • Introduced Rotor Sail System (RTS) to the large bulk carrier, SEA ZHOUSHAN

Social Achievements

  • Established Human Rights Management Policy in June 2023
  • Revamped the education system by role and job duties in December 2022
  • Introduced Self-compliance Program (CP) in June 2022
  • Established ESG Committee within the Board of Directors in February 2023

Governance Achievements

  • Established and disclosed the Corporate Governance Charter in February 2022
  • Established ESG Committee within the Board of Directors in May 2022
  • Introduction of Anti-Corruption Program in March 2023

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero in all business areas by 2050
Medium-term Goals:
  • Achieve 2050 Net Zero
Short-term Goals:
  • Reduce total emissions by 10.4% and emission intensity by 15.2% by 2030 (base year: 2021)

Environmental Challenges

  • Tightening regulations on nitrogen oxides and sulfur oxides emissions in major ports
  • Climate change impacts including rising sea levels, increasing ocean temperatures, and changes in ecosystems
  • Inclusion of the shipping industry in the EU ETS
  • Economic uncertainties
Mitigation Strategies
  • Use of low-sulfur fuel oil, installation of scrubber systems, and implementation of other effective measures
  • Declaration of 'Net Zero by 2050' and unveiling of the '2030 Carbon Reduction Strategy'
  • Active preparation for ISO 45001 certification in 2023
  • Implementation of an ethical management system and establishment of a Risk Management Committee

Supply Chain Management

Supplier Audits: At least twice a year

Responsible Procurement
  • Compliance with Pan Ocean's environmental and ethical management rules and policies

Climate-Related Risks & Opportunities

Physical Risks
  • Acute offshore employees and cargo safety risks from sea temperature and sea level rising due to global warming
  • Impact on vessel navigation patterns due to continued changes in marine environments
Transition Risks
  • Vessel operation suspension if failing to meet EEXI requirements
  • Low-rating in CII
  • Risk from inclusion of shipping in EU ETS
  • Reputational deterioration due to GHG emissions
Opportunities
  • Transition to high-efficiency, low-carbon vessels
  • Greater fleet competitiveness achieved by optimized fleet operations
  • Profits generated from trading carbon reduction credits
  • Portfolio expansion of green vessel and fuel-related businesses

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 14001, ISO 45001 (POS SM)

Third-party Assurance: Korea Management Register (KMR)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Green vessels
  • LNG carriers
  • LNG bunkering vessels

Awards & Recognition

  • 2022 12th AEO Case Sharing Competition (AEO Best Practice Competition)
  • 2022 Good Relationship Sponsorship Category Jongno District Member of National Assembly Award
  • 'One hundred Million Tonnage Shipping' Award