ABS and leading Korean players take aim at Scope 3 emissions methodologies

Key Korean shipyards include HD Hyundai Group, KSOE, HHI, HMD, HSHI, SHI, and DSME

ABS is leading a unique approach to advance the shipbuilding industry’s decarbonization efforts with a joint development project (JDP) involving all the leading Korean shipyards plus the classification group Korean Register to address a growing need in the calculation of greenhouse gas (GHG) Scope 3 emissions, the classification society said.

With key Korean shipyards HD Hyundai Group, Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Heavy Industries (HHI), Hyundai Mipo Dockyard (HMD), Hyundai Samho Heavy Industries (HSHI), Samsung Heavy Industries (SHI), and Daewoo Shipbuilding & Marine Engineering (DSME), the comprehensive JDP aims to create a standardized approach that could potentially apply across the whole industry.

Scope 3 in the shipbuilding industry includes GHG-generated emissions at all stages of the process from procurement of raw materials to ship operations and final disposal – in addition to GHG (Scopes 1 and 2) directly and indirectly emitted during the shipbuilding process.

“Market demand for measuring Scope 3 emissions is growing, but there is no standardized methodology yet,” said Panos Koutsourakis, ABS Vice President, Global Sustainability. “ABS is at the forefront of maritime decarbonization research projects and verification studies. We are the ideal partner for this group of industry-leading organizations to create a new global standard for Scope 3 – measuring, qualifying and mitigating the data to understand a company’s carbon footprint in greater detail.”

“Our collaboration to standardize Scope 3 emissions in the shipbuilding industry is a vital step towards a sustainable future. By working together, we not only benefit our individual companies but also contribute to reducing our environmental impact and creating a more sustainable world in the whole shipbuilding industry,” said YoungHo Lim, Senior Executive Vice President and Chief Operating Officer, Hyundai Heavy Industries.

“Samsung Heavy Industries decided that it was necessary to develop a credible Scope 3 methodology, so it has already developed and calculated GHG emissions with ABS last year. In this JDP, we expect to develop a more advanced standard-methodology for the shipbuilding industry and contribute greatly to the decarbonization of the value chain,” said JinHan Bae, Senior Executive Vice President and Chief Financial Officer, SHI.

“To attain the carbon neutrality that we all aspire to, it is imperative that not only individual companies, but also supply chains and customers, participate in this effort. It is our hope that the established guidelines will be broadly embraced as a global industry standard for all shipyards, thereby assisting the shipbuilding and related industries in their journey towards carbon neutrality,” said JeHyouk Woo, Senior Executive Vice President and Shipyard General Manager, DSME.