Environmental Report 2012 - hmm21.com

Environmental Report 2012

Environmental Report 2012

‘I AM POSITIVE’

About This Report

Reporting Period and Scope

The period of this report is from January 1 2011 to

December 31 2011 and the data in 2009, 2011 is used to

provide information of comparison and progress with past

result. The range of report is activities and result from place

of business in Seoul, Pusan, ships and individual terminals

and, if necessary, the activities of subsidiary companies and

overseas corporate are included.

Standard of Composition and Verification

This report is composed in reference of GRI(Global

Reporting Initiative) G3 guideline and 2007 Ministry of

Environment’s Environmental report guideline. Green-house

Gas Emission is in reference of 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 aims at suggesting

the will and vision for green management that we pursue

through this.

Purpose of Publication

Assurance

This report has been reviewed by outside environmental

management expert for credibility of contents.

Additional Information

Additional information of this report can be obtained by

following individual reports and Hyundai Merchant Marine’s

homepage or other related websites.

Reports

• Environmental Reports : Information about green

environmental management

• Green-house Gas Inventory Report : Information of

green-house gas

• Annual Report

Websites

• www.hmm21.com : Homepage

• dart.fss.or.kr : Various public announcement materials

Contact Information

Maritime Planning Team

5F Pusan Postal Office, Jungang-dong 3ga-1, Jung-gu, Pusan

Tel : 82-51-461-7060

Fax : 82-51-463-0711

email : [email protected]

Report Created

• May. 2012

CEO Message

Company Overview

Green Management Strategy

Green Management Vision and Strategy

Green Management Promotion Organization

Long-term Roadmap

Green Environment KPI

Long-term Greenhouse Gas Reduction Targets

Green Management System

Green Environment System

Environmental Accident Counteracting System

Green Environmental Deliberation

Green Environmental Education

Green Environmental Result Evaluation

Investment in the External Environment

Green Activity & Performance

Use of Resource

Use of Water

Use of Energy

Responding to Climate Change

Use and Emissions of Ozone Depleting Substance

Emission of Air Pollutants

Management of Water Pollutants

Waste Material Emission and Recycling

Green Environmental Effects Evaluation

Eco-Friendly Transport

Toxic Chemicals Management

3

5

11

13

15

16

16

19

22

23

24

25

26

29

30

30

31

35

36

37

39

40

42

45

Hyundai Merchant Marine Co., Ltd. 1

Green Community

Natural Ecosystem Preservation Efforts

Management of Eco-Friendly Supply Chain

Certifications · Awards

Green Communication Activities

Status and Respond of International Environmental

Restriction

Green Product

Energy Saving Activities

Eco-Friendly Technology

Green Technology Research Activities

Appendix

Reports Index

Readers’ Opinion Questionnaire

Term Explanation

HMM Emission per Vessel

49

50

51

53

55

61

65

66

69

70

71

73

CEO Message

Dear interested parties

Thank you for your interest and support for Hyundai Merchant Marine Co., Ltd.

Hi~

I really appreciate you for helping Hyundai Merchant

Marine to grow as world’s top-class company and

I’m pleased to tell you our company’s green

management activities and the results.

Hyundai Merchant Marine spreads management

activities to become a company who realizes global

community’s happiness beyond customer

satisfaction through top experts best logistics

solution. For this, we input all our force into effective

value-delivery system and development of

transportation/logistics technology between

individuals and companies in the world in 21st

century global economy·social· environment and we

intend to devote to management of human race’s

more prosperous and happier living by more

economically and continuously delivering goods and

resources scattered around the world.

Hyundai Merchant Marine recognizes safety, quality,

environment, health and green-house gas reduction

as important elements for management, and

declared our contribution to human race’s opulent

living and global environment preservation through

green management policy.

Hyundai Merchant Marine will continuously develop

and provide new logistics value in customer’s

position through 3 big core values of customer-

centered, challenging mind and awareness as

global citizen, and develop integrated service model

in which customer’s changing needs are reflected

through organic cooperation with cooperative

companies. Also we intend to pursue accompanied

growth with global community by connecting

production/distribution/consumption with eco-friendly

method.

Hyundai Merchant Marine actively promotes various

activities to preserve global environment such as

eco-friendly facility investment, green-house gas

reduction, resource management, energy recycling

expansion in order to realize our vision for the

company who offers global community’s happiness

beyond customer satisfaction through top experts’

best logistics solution. And, through Green

Management System(GMS), we contribute to

increase of green management’ effectiveness. As a

result of these various efforts, we received carbon

management industry leader prize from Carbon

information Disclosure Project committee(CDP) first

in shipping industry in 2011, and intensify our


PRESIDENT & C.E.O Hyundai Merchant Marine Co., Ltd.

leading position as a green company by withdrawing

evaluation of 1st rank in shipping industry in

domestic listed companies environmental evaluation

from CGS(Corporate Governance Service).

These results were possible with staffs & executives’

devoted efforts and encouragement from many

interested persons. Thus, we published

environmental report by supplementing the reports

in the meantime to provide faithful information of the

Company’s activities and results.

Hyundai Merchant Marine will do our bests to raise

company’s value and human race’s living quality

through green management in the future. Please

give Hyundai Merchant Marine’s continuous efforts

your unstinted love and encouragement.

Thank you

2012 Environmental Report 4

Company Overview

We are a general shipping logistics company who realizes global community’s

happiness beyond customer satisfaction through top experts’ best logistics solution.

We provide best transportation service based on 180plus cutting-edge ships, seaway

network that connects the whole world, various logistics facilities, IT system leading

shipping industry and skilled expert manpower in shipping.

We provide various transportation services with various ships.

Starting with 3 oil tankers in 1976, we have strengthened our competitiveness by

positively advancing to new businesses like container ships, bulk carriers, oil tankers,

ore/coal carriers, gas carriers, dead-weight cargo and special cargo. As a result we

secured business structure that can create stable profits even in market change in

specific field that manages diversified business area.

We have pride in our world’s top-class level competitiveness.

Based on skilled ship operation and exact prediction of market condition by enormous

global network of 4 Regional Headquarters, 26 Subsidiaries, 5 Operating Terminals,

76 Branches, 3 Liaison Offices, top shipping expert manpower, we are proud of

world’s top level competitiveness in shipping industry with fierce competition without

border, based on upgraded global IT system.

We play a role of advance guard in national competitiveness artery, trade war age.

We are a national company who earns foreign currency by performing national

economy’s artery role with transporting of national strategic materials like imported

goods and crude oil, LNG, coals, iron and various special cargos as well.

We aim at world’s top general logistics company.

We will grow as world’s top general logistics company who gives hope to

shareholders, satisfaction to customers and pride to staffs by positively investing into

continuous expansion of ship line, securing of terminals and inland logistics facility in

main base in the world and development of customer-centered IT system.

2012 Environmental Report


Customer’s dream come true

General Shipping Logistics Company

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 400,000 TEU 100%

HPNT Pusan 2,000,000 TEU 50%

RWG Rotterdam 4,000,000 TEU 20% Open in 2014


Fleet Profile

Category Owned Chartered Total

No Capacity No Capacity No Capacity

Container

2010 22 133 39 184 61 317

2011 22 133 40 175 62 307

2012(Current) 22 133 40 175 62 307

Wet Bulk

2010 17 952 25 3,642 42 4,594

2011 16 2,370 23 2,890 39 5,260

2012(Current) 16 2,370 23 1,712 39 4,082

Dry Bulk

2010 11 1,675 44 2,996 55 4,671

2011 13 2,087 63 4,146 76 6,233

2012(Current) 14 2,145 65 4,684 79 6,829

Total

2010 50 108 158

2011 51 126 177

2012(Current) 52 128 180

※ Capacity Unit : Container 1,000 TEU / Wet Bulk 1,000 DWT / Dry Bulk 1,000 DWT

※ Chartered : Over one year chartered.

(As of Feb 2012)


Economic Results

Hyundai Merchant Marine achieved KRW 7.1878 trillion of sales in 2011. We will try to create more effective

economic results in the future.

Container

Dry Bulk

Dedicated Service Tramper Bulk Liner Heavy Lift

73% 12%

15%

< FY2011 Revenue Breakdown >

Revenue

6,116

8,087 7,188

2009 2010 2011

Unit : KRW billion

-565

602

-367

2009 2010 2011

Operating Profit Unit : KRW billion

Service Scope

• Accounting Method : Year 2009 ~ 2010 ( K-GAAP ), Year 2011 ( K IFRS )

Wet Bulk

LNG LPG Crude Tanker Product Tanker

8,341 8,818

8,432

2,214

2,951

1,700

2009 2010 2011

Total Assets

100%

200%

300%

400%

500%

2009 2010 2011

Assets Equities Unit : KRW billion

Leverage Ration

Debt to Equity Net Debt to Equity



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

Green Management Vision and Strategy

Vision of Hyundai Merchant Marine is ‘A company who realizes global community’s happiness

beyond customer satisfaction through top experts’ best logistics solution’. Based on this vision,

Hyundai Merchant Marine systematically manages the results by establishing 5 big strategic tasks

of responding to weather change, improvement of energy efficiency, responding to interested

persons, raising image, development of green ship technology. To change staffs & executives’

awareness of environment in eco-friendly way, Hyundai Merchant Marine develops and runs

various living practice programs. We are progressively widening our scope of activities based on

this, and try to become a green company who ultimately realizes global community’s happiness

beyond customer satisfaction.

Vision

Mission We are the center of global industrial value delivery.

“A company who realizes global community’s happiness beyond customer satisfaction through top

experts’ best logistics solution”

Strategic tasks

Responding to climate change

Improvement of energy efficiency

Responding to interested

persons

Raising image

Development of green ship technology

•Respond to environment/GHG

•IMO Conference

•Submit international agenda

•Corresponding emissions

trading

•Participate in goal

management system

•Prepare ship recycling

convention

•Carbon asset management

•Green company certification

•Green certification system

Participate in

initiative policy

Medium & long

term greenhouse

gas reduction

•Energy management system

•Energy efficiency

improvement facility

•Develop analysis tools

•Certify new shipbuilding EEDI

•Reduce Green-house gas

17% compared with 2008 until

2015

Intensify foreign

activities

•Stakeholder response

•Publish GRI report

•Publish Environmental Report

•GHG inventory report

•Participate in CDP

•Technical consulting

•ESI, CSI, CCWG

•GHG Forum, Seminars

•GRI report 발간

Participate in

R&D

•Green ship technology

•Results utilizing/

commercialization

•Expand research facility,

manpower·

•Expand participation in R & D

•Build eco-friendly ship

•Develop green growth

business

Vision and Strategic system

Environmental value aimed by vision Continuous development of logistics solution that minimizes impact on global Eco System through eco-friendly management activities “Green Doings Bring Green Rewards”

Actively participate in setting of global policy

direction

Communication and share for common

interest and cooperation

Secure green leadership in overall industry

Build new value creation basis

Green Management

Strategy

Contribute to greenhouse gas

reduction through green technology innovation



Leading Participation in Policy

Hyundai Merchant Marine participates in domestic and overseas meeting in preparation for

weather change measures in shipping field in relation to environment, GHG as well as in review

of int’l agenda documents and meetings including IMO. Also we promote various activities like

building of green-house gas general management system, green office and opening of

educational courses. And we review on participating in emission right model transaction system,

energy goal management system, green company certification and green technology

certification system for positive response. Based on this Hyundai Merchant Marine will build

carbon assets management system continuously try to expand low carbon green growth eco-

friendly brand image.

Long-term Greenhouse Gas Reduction

Hyundai Merchant Marine, in real time, analyzes green-house emission discharged through

business activities by building green-house gas general management system(GEEMS). We try

to improve ship’s energy efficiency through applying and development of ship’s energy

efficiency improving facility and installs energy high-efficiency facility in building ships. We now

conducts 17% green-house gas reduction goal until 2015, a plan to promote optimization of

shipping, functions by continuously analyzing ship’s energy efficiency.

Strengthen Foreign Activities

Hyundai Merchant Marine strengthens foreign activities through producing of environmental

reports, green-house gas inventory reports and environmental restriction-related books in

shipping field. And we continued to expand shipping field’s eco-friendly image by announcing

green management activities in GHG forums and seminars in domestic and overseas, including

participation in CDP, ESI, CSI, CCWG.

Participation in R&D

We jointly develop R&D with government, equipment companies, schools and research centers

for green ship technology development and make best efforts in building eco-friendly ships. We

are going to satisfy government’s low-carbon green growth expectation through development

shipping field’s new green growth business and contribute to realizing low carbon society

through reduction of green-house gas.

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 Promotion Organization

Hyundai Merchant Marine established ‘Green environment safety committee’, with CEO’s

becoming chairman, for setting medium & long term and detailed goals for green management

promotion and periodically evaluates and reflects the results for continuous improvement.

Green environment safety committee has an advisory committee composed with experts in

each field to raise its expertise and green management working group to respond to global

environment issues. And each working committee under it performs the function of green

environment safety committee upon feature of each ship group.

Green Environment Safety Committee’s Organizational Chart

Chairman

CEO

Advisory

Head of other part

Administrator

QC team

Liner Unit Bulk Unit Maritime Unit Team Under

Control of C.E.O

Vice chairman

Head of maritime affairs

Working Committee in each ship group

Container Gas oil tanker Bulk

Ship Green Environment Safety Committee

Green Management Working Group

Maritime Affairs Management Planning

HQ CEO’s direct control and

business part



Organization’s Role

Organization Main Roles

Green Environment

Safety Committee

• Deliberate, determine entire company green environment safety policy and strategy

• Deliberate relevant facilities and investment direction to improve green environment

and health & safety quality

• Deliberate feasibility, 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 general 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 group

• Execute green environment safety committee upon each ship 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

green environment part in domestic and overseas, and tries to grow as eco-friendly green

company by deducting medium & long term green environment strategy and phased 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 create the proper future doing green management.

•Acquire ISO14001

•Waste material

control

•Environment

program

•Prevent oil leakage

•SOPEP

•GEEMS

•GMS

•Set medium & long term

goal

•EEOI / EEDI

•SEEMP

•Verify fuel efficiency

•Green Ship

•Review CDM

•Expand R&D

participation

•Prepare SRC

•Evaluate and re-

establish reduction

goal

•Emissions trading

•Participate in CDM

•Green growth new

business

•Carbon assets

management

Introduction

1996~2009

Develop

2013~2015

Grow

2010~2012

Take Off

2016~

Promotion Direction



Green Environment KPI

Offshore (Ships)

Division KPI

Air pollution Green-house gas, Sox, NOx, Ozone depletion material, VOCs, Exhaust gas/soot/dust

Marine pollution Prevention oil leak, use anti-fouling paint, Ballast Water, Gray Water, Sewage

Waste control Waste oil, plastic, garbage, food

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 Company vehicles’ use oil, culturing place, green-house gas

Hyundai Merchant Marine, without difficulty compared with 2011, achieved results by continuously

managing green environment KPI, and will make efforts to achieve the goal in 2012. We try to promote

so that the result of green environment management activities will continuously improve and develop by

continuous promoting reduction of pollutants and increasing recycling rate of waste materials in

preparation of strengthening of environmental restriction.

Website for the results and goals :

http://www.hmm21.com/cms/company/kor/introduce/ism/plan/index.html

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 Reduction

rate

Emission/ship 5.33 5.07 4.65 4.30 4.57 4.39 4.28 4.16 4.22 17%

단위 : g/Ton·Km

Long-term Greenhouse Gas Reduction Targets

Hyundai Merchant Marine calculated base emission factor by itself, which represents each kind of ship

and size. We set the medium & long term green-house gas reduction goal, reflecting the trend upon past

emission results for existing ships and IMO EEDI Reference Line for newly built ships, by using

calculated base emission factor. We will continuously make efforts with goal to reduce 17% up to 2015

with standard of 2008.



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

Green Environmental System

Hyundai Merchant Marine participates in global environmental preservation efforts to achieve

customer satisfaction through securing of green environment, health safety and transportation

service quality increase.

Hyundai Merchant Marine aims at development to world’s top-class general logistics company

by improving staffs & executives’ working environment and further promoting activities to keep

clean natural environment and all our health with minimum influence on environment in inland

and offshore marine personnel’s entire work area.

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 environment in sailing of ships

• Prevent accidents through foreknowledge, grasping, risk evaluation and management of risks

• Continuous improvement of health & safety results

Quality

• Realize customer-centered and customer satisfaction

• Customer satisfaction through service improvement and operational efficiency

Will of top management Appropriate resource

arrangement Participation of personnel in entire ship and inland

Clear definition and documentation of

responsibility, right and mutual relationship

Establish emergency responding system

Continuous improvement



Hyundai Merchant Marine’s ESQS(HMM-ESQS) is green environment and safe quality

management system. This system has been made by integrating ISO 14001(EMS), ISM

CODE(SMS), ISO 9001(QMS) OHSAS 1800Q, GMS for environment protection and good

quality server. Based on this system we systematically perform green environment,

safety/health and quality factors.

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 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

Integrated Management

System



Hyundai Merchant Marine executes environment goal to announce green environment

management will in environmental policy to practice more efficient green environment

management.

Green Environment Plan

Air Pollution

Marine

Pollution

Resource andWaste Material Management

• 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 preventing accidents by analyzing potential risks of all

environmental accidents and maintains 24-hours constant monitoring system. With operation of prompt

situation delivery, first-aids, emergency task force HQ, we prevent accidents in environment·safety·health

and minimizes damages. Members of emergency task force composed with experts in each field

continuously receive training to learn professional skills.

Emergency Counteracting Organization

CEO

Consultant

Site Action Team

Emergency task force HQ

Director of emergency task force

Ships

Environmental Accidents Counteracting System

Organization Main Roles

Director of ETF

• Direct each team’s work in ETF HQ and operate site action team

• Set/perform emergency salvage measure

• Set/execute life/ships/cargo’s damage and environmental contamination

minimizing plan

• Report of handling status and results to management

• Other necessary matters for handling emergency situation

ETF HQ

• Grasp role of window for liaison with site and site status and information

management

• Grasp ship’s seaworthiness and life safety measure

• Close liaison with foreign salvage institutions

• Work coordination toward government office and authorities

Site Action

Team

• Generalize and report site affairs

• Direct ship salvage/cleanup operation on site

• Other necessary matters for site affairs

Role of Each Organization



Green Environment Deliberation

Hyundai Merchant Marine executes regular & temporary internal deliberation more than once a

year for effective management of influence in all activities in connection with operation of green

environment ·safety ·health management system, As a result of 2011 inland team’s

internal/external deliberation, we improved total of 3 cases and 54 cases after ship

internal/external deliberation.

Internal examiner for green environment·safety·health is selected according to qualification

defined by company rules, and they are regularly trained for capability increase through self and

commissioned education.

And green environment·safety·health internal deliberation was done by dividing into inland/ship

for verification in management & operation aspect and the problems deducted by deliberation

are immediately improved to make sure operation of best management system.



Green Environment Education

Hyundai Merchant Marine makes sure observance of the laws through continuous education, site checking and thorough

monitoring of the green environment laws to inland/offshore staffs & executives and controls education & training

time(hours/persons) as results index to improve awareness of staffs & executives’ for green environment management. We

regularly execute regular green environment safety education by differentiating the contents of education according to class

and duty to raise awareness of staffs & executives and personnel of cooperative companies for green environment safety.

And we induce them to be easily familiarized with trend of domestic & overseas green environment through commissioned

training, seminar and workshop.

Division Training Hours

2011 2012

Plan Results Plan

Participation Hours Participation Hours Participation Hours

Internal

Green-house gas 1.5 20 40 17 25 20 30

Environmental issue self-Study

1 0 0 40 40 48 48

Captain/chief engineer RC

3 16 32 62 101 62 62

Onboard Training 12 910 10,920 952 11,424 952 11,424

Electronic engine 8 6 48 17 136 12 96

Commissioned

MARPOL I 16 26 416 27 432 33 528

MARPOL II 16 12 192 7 112 21 336

Contamination prevention Manager

40 10 220 7 152 17 312

GHG internal examiner training

24 2 48 0 0 0 0

GHG Inventory building staff Training

16 1 16 0 0 0 0

CDP training 8 2 32 1 8 1 8

Shipping industry & green growth

16 1 16 3 48 0 0

GMS hand-on training 8 1 8 0 0 0 0

GMS internal examiner training

16 2 32 5 80 0 0

Other training 8 0 0 2 16 8 64

Total 1,009 12,020 1,140 12,574 1,174 12,908

Curriculum and Completion Status

Training time(Hours/persons) – (Annual green environment management training time)/(Total members) In 2011 achieved 6.7 results index and in 2012 aims at 6.8.



Green Environment Results Evaluation

Hyundai Merchant Marine is promoting from 2011 so that activity results shall be continuously improved and developed by

measuring, analyzing and evaluating green environment activities by evaluation system developed after developing

evaluation index and standard appropriate for management environment in entire company level.

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 use amount

Business place law violation Water use 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



Investment in the External Environmental

Hyundai Merchant Marine participates in carbon information disclosure project CDP to recognize

responsibility for weather change and lead in protecting global environment. CDP is a project that global

financial institutions and institutional investors examine liabilities and risks related to weather change

and reflect in management of transaction companies. 551 global financial institutions who run about

71trillion dollars of assets in February 2011 participate as CDP signatory institutions and 28 domestic

financial institutions who run about 1,470trillion assets in July 2011 participate since CDP Korea’s start

in 2008. As a result of actively responding to weather change after participation in 2009, Hyundai

Merchant Marine, in 2011, was awarded with carbon management industry leader prize from CDP Korea

committee first in shipping industry.

CDP 2011 Korea 200 Report website address :

http://www.kosif.org/board/bbs/board.php?bo_table=cdp_05&wr_id=74

Participate in CDP

Industry Companies

Industrial goods

Samsung C&T Corp. Samsung Techwin

Transportation

Hyundai Merchant Marine, KAL

Finance(banks) IBK, DGB Financial Holdings

Finance(non-banks) Woori Investment Securities, Samsung Fire Insurance

Raw materials POSCO, Honam Petrochemical, Hanwha Chemicals

Optional consumables LG Electronics, Woongjin Coway, Hyundai Motors

Essential consumables Samyang, LG Living Health

IT industry Hynix semiconductor, Samsung Electricity, Samsung Electronics

Communication SK Telecom, KT

Energy·Utility Korea District Heating Corp. Woongjin Energy

Pharmaceutical health <No companies awarded>

Carbon Management Industry Leaders



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

Use of Resources

Hyundai Merchant Marine uses MRO products and raw & subsidiary materials for main resources.

We effectively controls resources for annual using amount and actively participates in preventing

waste of resources and environmental pollution as well as promoting production of green product by

purchasing the product certified as green product among MRO product, raw & subsidiary products.

Whereas entire purchase of MRO product in 2011 was increased, that of green product among MRO

product was decreased. This is because the use amount of paint for hull’s external plate, classified

as green product, was decreased due to decrease of docking ships in 2011. That is, in 2011

purchase percentage of green product among MRO product was decreased in 2011, so we plan to

raise MRO green product purchase through continuous expansion of green product in 2012.

MRO Product

Raw & subsidiary materials are for ship’s fuel. Purchase of raw & subsidiary materials and green

product was increased in 2011 compared with 2010. Increase of bunker oil price caused purchase of

green product to increase, though decreased among entire raw & subsidiary materials. We plan to

raise purchase of green product by continuously using low-sulfur oil and eco-friendly fuel.

Raw Materials

Year 2010 2011

MRO product purchase 18 24

Green product purchase among MRO product 0.95 0.48

Purchase percentage of MRO green product 5.2 2.0

(Unit : mill. USD)

Year 2010 2011

Raw & subsidiary materials purchase 375 583

Green product purchase among Raw &

subsidiary materials 8.6 11.4

Purchase of green product(MT) 16,753 16,410

Purchase percentage green product(%) 2.2 1.9

(Unit : mill. USD)



Use of Water

Hyundai Merchant Marine defines only distilled water from evaporating seawater as water and controls

its consumption. We try to reduce costs and environmental pollution by reducing supply of water from

inland and using distilled seawater.

Year 2010 2011 Relative to 2010

Supply and production of water 215 222 + 3%

Water consumption 210 221 + 5%

Consumption/production 97.6% 99.5% + 2%

(Unit : 1,000 ton)

Use of Energy

99% of energy used by Hyundai Merchant Marine is for ships, and energy use of ships is increased in

2011 over 2010 due to expansion of ship line. But, energy efficiency in per ship was improved, providing

more effective marine transportation means. We try to energy efficiency by applying energy efficiency

improved facilities like hull tolerance reduction facility, propelling efficiency improving facility, engine

efficiency improving facility, sludge/fuel-reducing facility, equipment operation/sail management,

lubricant consumption improving facility, main engine facility change.

Division 2010 Y 2011 Y

TJ MJ/ton·miles TJ MJ/ton·miles

Heavy Fuel Oil 32,432 0.11

34,202 0.10

Marine Diesel Oil 291 232

• Employees in 2010: 746 / employees in 2011: 936


TJ MJ/employees TJ MJ/employees

Diesel 0.0002

37,006

0.0007

27,255 Gasoline 0.0019 0.0025

LNG 0.0050 0.0079

Electricity 27.6 25.5

Ships

Inland



Responding to Climate Change

In December 2011 World Summit on climate change was held in Durban South Africa, and in

2009 U.S EPA defines CO2 as pollutant, and each country competitively suggest green policies,

such as Korea suggests low-carbon green growth as a basic law, to respond to weather change.

Hyundai Merchant Marine, fit to global standard, operates activities to reduce green-house gas

emitted from ships, terminals and entire business place. Though Climate Change Convention

can cause a big crisis in companies’ 21st century management, Hyundai Merchant Marine tries

to utilize this as a change by meeting this movement in advance.

Activities to Counteract Climate Change

Date Details

09.2010 Climate change policy advisory group activities

10.2010 Built green-house gas inventory

10.2010 Built supply chain carbon calculator

12.2010 Developed Ship Energy Efficiency Management Plan

03.2011 Published Green-house gas emission booklet

06.2011 Built Green Management System first in shipping companies

06.2011 Participated in CDP(Carbon Disclosure Project) (Since 2009)

06.2011 Participated in ship lifecycle management system development in Ministry of Knowledge & Economy

08.2011 Order of 5 carbon-reduction type super-large ships

08.2011 Announced seminar about climate change related shipping company response

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 Announced education of ‘Shipping industry and green growth’ held by Korea Registering of Shipping

10.2011 Awarded ‘Carbon Management Industry leader prize’ in CDP industrial goods transport

11.2011 Announced participation in ‘SIMS 2011’ held by Korea Registering of Shipping

12.2011 Awarded prize of minister of Land, Transport and Maritime Affairs



Greenhouse Gas Management System

To respond to climate change, Hyundai Merchant Marine performs multilateral activities.

Though we have managed greenhouse gas emission from ships since 2006, we composed

green management task force in 2010 to meet domestic & overseas demand. The task force

team is composed with experts in ships, terminals, logistics and planning, building Green

Energy Efficiency Management System(GEEMS), which is composed with GHG Inventory,

Supply Chain Carbon Calculator, EEOI/EEDI Calculator, SEEMP.

GHG Inventory

This means operating system that systematically controls greenhouse gas emission source with

listing of each facility, process and business place for statistic management of company’s

greenhouse gas emission. GHG Inventory of Hyundai Merchant Marine is the system that

grasps all sources of direct greenhouse gas discharged from direct combusting of fuels from

ships, terminals and company buildings as well as indirect emission like general electricity use.

We also operates monitoring of air pollutants emission by controlling not only greenhouse gas

but also NOx, SOx, PM. Exact counting of real-time greenhouse gas emission is available

based on this and we set reduction plan upon grasping of each reduction potential. GHG

Inventory of Hyundai Merchant Marine is verified through KRS for its appropriate calculation

with international standard like ISO 14064, IPCC 2006 Guideline.



Supply Chain Carbon Calculator

It’s the system that automatically calculates greenhouse gas from departure of cargo to

destination, including all transport section of company, that is, inland transport like trucks,

railroads. This system is made to provide Carbon Footprint of Hyundai Merchant Marine’s ships

required by consignors. Currently, this calculator is in service on company’s homepage and

consignors can check transport sector’s greenhouse gas emission and choose the course with

the least greenhouse gas happening. Supply Chain Carbon Calculator is developed by

methodology suggested by CCWG, but, we raised credibility by using our own factor that

calculates greenhouse gas emission.

EEDI Calculator

It’s the system that calculates new ship’s energy efficiency design index in concept of vehicle’s

fuel efficiency. It was confirmed that EEDI will be mandatorily applied to ships built from 2013 at

62nd IMO MEPC conference. In principle, EEDI is applied only to new ships, but, Hyundai

Merchant Marine developed the system that can calculate existing ship’s EEDI. This is because

there’s limit in analyzing ship’s efficiency without grasping design efficiency as it influences on

actual sailing.

• Supply Chain Carbon Calculator ‘s website address : http://geems.hmm21.com/Calculator/Calculator.aspx



EEOI Calculator

It’s an index to calculate on how much efficiency currently sailing ships run. As it shows ship’s

actual efficiency, it’s very important index for shipping company. Hyundai Merchant Marine built

our own EEOI Calculation System. Especially, it can calculate in various ways beside the

method suggested by IMO and very effective in analyzing energy efficiency as it can search in

various conditions.

SEEMP

At the 62nd IMO MEPC conference mandatory implantation of SEEMP is resolved. It means that

all ships should furnish SEEMP from 2013. SEEMP is management guidance for ship operating

parties to increase ship’s energy efficiency. Hyundai Merchant Marine is now already operating

our own SEEMP which includes various greenhouse reduction methods, techniques. In

particular, we continuously performs activities to reduce greenhouse gas of individual ships

through so-called PDCA(Pick-Do-Check-Action) cycle that sets each ship’s reduction goal and

actually performs this, measure emissions and reevaluates this.



Use and Emissions of Ozone Depleting Substance

Ships use various refrigerants in freezer, air-conditioning, Unit-Cooler and refrigerated containers.

Hyundai Merchant Marine composes ozone layer destruction materials list and record since 2010

and plans to reduce pollution and promote offset of omitted emission by distributing refrigerant

collecting equipments in some ships. Rapid reduction of ozone depleting substance in 2010 is due to

reduction of consumption through ship sales and equipments preparatory repairing. A little increase

of 8% in 2011 is because of maintenance of unrepaired equipments in 2010, but we keep reducing

through expansion of refrigerant collection equipment and retrofit to equipment that uses

replacement refrigerant.

Year 2008 2009 2010 2011 Relative to 2010

ODS (Kg) 4,587 4,341 2,622 2,846 8 %

Refrigerant Restriction Status

• ODS : Ozone Depleting Substance

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)

Ozone Depletion Substance Record

Ozone Layer Destruction Materials



Emission of Air Pollutants

We make efforts by changing fuel-injection valve to Sliding Type and installing engine control device

to increase fuel efficiency. And in the future we’re going to apply alternative Maritime Power System

that can be supplied with inland power while anchoring in wharf and use it as power on board.

Management of NOx Emission

Management of SOx Emission

Hyundai Merchant Marine tries to protect air environment and compose comfortable environment by

installing Vapour Emission Control System(VECS), a device to collect vapor happening upon

shipping of cargo oil on oil tanker.

Management of Vapor Emission


NOx emission(ton) 68,883 72,428

NOx unit emission (g/ton·miles) 0.225 0.210


SOx emission(ton) 43,463 45,775

SOx unit emission (g/ton·miles) 0.141 0.139

Management of PM Emission


PM emission(ton) 5,391 5,678

PM unit emission (g/ton·miles) 0.017 0.016

Determining use of fuel less than 3.0% of sulfur content as basic principle, we sincerely observe

international convention by using low-sulfur oil in California, EU PORT, ECA regions.

AMP System



Management of Water Pollutants

Seawater is injected or discharged into/out of ballast tank to secure ship’s recovery, and this cause

change in marine ecosystem in each country’s coast, like exotic creatures not discovered before. To

prevent this marine ecosystem disturbance we thoroughly perform with ballast control plan, and

perform exchange of ballast in deep ocean far from coast. And we’re going to expand and applying

with installation and operation of Ballast Water Treatment System in each container ship.

Ballast Water Management

We installed and operate de-oiler pretreatment device in entire ships for effective separation of bilge

in ship and executes annual checking on 15ppm Monitor.

Bilge Management

CASE Ⅰ

CASE Ⅱ



We use sewage disposal device and Holding tank for sewage from ships. And we respond to regulations like U.S’ Vessel

General Permit by newly installing dedicated-use Holding tank for Gray water discharged from Galley.

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

• Discussing on separate restriction

on IMO’s Gray Water from

Sewage(determine at 64th MEPC)

• EPA is enacting 2013 VGP bills,

strengthen restriction on Gray Water

Monitoring for new 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

Hyundai Merchant Marine recycled whole plastic waste material in 2011 by landing them.

Plastic incineration on board is strictly limited due to harmful materials to human, and in case of

sailing coast or anchoring all emission of waste material and use of incinerator is prohibited

Plastic Waste

Hyundai Merchant Marine reuses drain oil available for cleaning by moving, cleaning again into

fuel oil tank and lands sludge to inland certified professional company for recycling. Recycling of

waste oil is executed limited to ships entering Pusan port and will be applied in the future.

Recycling of Waste Oil

Division 2011 Y

Waste oil landing amount(CBM) 11,568.5

Waste water amount(CBM) 1,458

Waste material landing amount(CBM) 300.8

Recycling oil amount(CBM) 2,524.9

Recycling percent(%) 32.3

Plastic Landing

Plastic Compressor

To minimize plastic waste materials we limits plastic packing upon supply of staple·side dish

and ship supplies and distribute plastic compressor for storage and landing in ship to be easy

Plastic Compressor



Green Environment Effects Evaluation

Hyundai Merchant Marine sets ‘Green environment goal, detailed goals and environment program’ and

tries to realize green environment policy by continuously control and improve this to minimize effects

weighed on green environment upon examining, evaluation of serious green environment effects due

to company’s activities and services.

Method of Evaluation

We execute simple or analyzed evaluation according to green environment effect evaluation standard

for identified green environment aspects of concerned activity. In case of more than 2 fields of

weighing green environment effects, we execute green environment effects evaluation for each field.

Cycle of Evaluation

Regular evaluation is in early December each year and non-regular evaluation is executed upon

happening of following matters.

• New installation or change of domestic & overseas environment-related laws’ restriction

• Change of Group and Company’s environmental policy

• Upon 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 Field

We grasp following fields that weigh influence on environment upon identification in green environment

aspect.

• Happening of waste materials(limited to near solid waste materials)

As liquid close to solid type like sludge and solid that hinder environment in process of disposal, it

means useless, unnecessary or surplus cargo, repair, sailing and garbage(except sewage).

• Emission to air

Emission to air under control/non-control of discharged materials that can happen from ships’ sailing,

cargo transport, container-transport use equipment, vehicles and office air-conditioning/heating.



• Emission to water

Emission of waste water to sea or neighboring waters under control/non-control which can

happen by sea water ballast, boiler water, gray water, dish water, oil water below 15ppm,

sewage treatment upon ship sailing and office operation.

• Noise/vibration

Sound over standard which happens due to use of noisy facility, equipment, container-transport

use equipment and vehicles and other objects.

• Consumption of resources

Consumption of resources due to direct, indirect use of fuel oil, cleaning water, natural gas,

ship-use supplies/parts, cargo fixing materials, container-transport use equipment and parts.

• Energy consumption

Power consumption

• Others

Factors that weigh on environment like work condition, health & safety such as lighting, odor,

dust, mote, toxic gas, hazardous material leak.



Eco-Friendly Transport

Hyundai Merchant Marine promotes harbor field’s green management with outstanding

reduction of terminals’ fuel oil use by converting from engine-drive type which utilizes fossil fuel

to electricity-drive type upon introduction of Yard Automated Transfer Crane(ATC) within

terminals to build eco-friendly transport system. And we save about 5% of electricity bills by

installing photovoltaic system on roofs of terminal gate.

Green Logistics

Hyundai Merchant Marine agreed with establishing joint-investment company for building of

logistics advanced model along with Hyundai Group affiliated companies like Hyundai Logistics.

An affiliated company ‘Netruck Friend’ is going to build logistics supply chain(SCM) based on

enormous on/offline cargo information network that each company has accumulated. We’re

going to reduce logistics costs and greenhouse gas by systemizing container, bulk cargos and

at the same time procuring direct trade between shippers and transporters. Hyundai Merchant

Marine strengthens existing cargo business by providing ‘Door to Door’ integrated logistics

service to shippers and using global cooperative companies’ inland·offshore network. This is

strategy to respond to future restriction on carbon dioxide and find new business model by

saving costs with increase logistics system’s efficiency and building eco-friendly logistics

system. And we entered ‘MOU for building eco-friendly logistics system’ with domestic railroad

company and other shipping companies in March 2011. We lead efforts for national logistics

costs saving and strengthening of national competitiveness and cooperation of greenhouse gas

reduction at transport process by building railroad and shipping-centered eco-friendly logistics

system.

MOU for Building Eco-Friendly Logistics System

Eco-Friendly Terminals

Hyundai Merchant Marine runs 4 self-supporting terminals in Korea, Taiwan, U.S, and has

opening of Europe terminal ahead in 2014. 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

Existing container-transport use crane was operated manually. But, Automated Transfer Crane

automatically controls several cranes at central control room. So this greatly contributes to

energy savings while raising operation efficiency and preventing human errors.

Automated Transfer Crane



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

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

working 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 used by eco-friendly energy like photovoltaic system.



AMP(Alternative Marine Power) System

Electricity was produced by using ship’s generator when the ship comes alongside the pier.

However, 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 in terminals in U.S region. AMP is facility to reduce air

pollution with type of supplying electricity to ships on land without operating ship’s generator.

Besides, various unloading equipments in terminals also are replaced with diesel 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 Management

As ship paint for prevention of marine creature’s attaching, the paint used for hull’s outside plate

painting weighs influence not only on attached creatures but also other bottom life in ocean.

Thus, Hyundai Merchant Marine applies eco-friendly ship-use anti-pollution paint. And for

chemicals used when removing various scales and carbonized oil on ship’s equipments, we use

eco-friendly chemicals.

Eco-Friendly Paint and Chemical

Eco-Friendly Chemicals

Enviromate 2000 ST-100L

Drewclean 2000 RR-101A

SNC 2000 ST-400P

Drewfresh 2000 Gamazyme

Envirocare VTC Carpet Cleaner

Drew Electric 2000

Eco-Friendly Paint and Chemical

Use amount of Hazardous Chemical

Product Unit 2010 Y 2011 Y Relative to 2010

Oxygen Control Can 2.03 0.05 0.98

Amerzine Drum 0.50 0.12 0.76

AGK-100 Can 17.93 5.90 0.67

Liquitreat Liter 9.53 6.02 0.37

Amerzine Can 4.23 2.88 0.32

SLCC-A Can 0.25 0.19 0.24

Adjunct B Can 0.18 0.14 0.22

Phosphate Ampoule Kit EA 7.98 6.74 0.16

Condensate Control Can 0.28 0.24 0.14

GC Can 0.55 0.69 -0.25

Autotreat Can 0.78 1.24 -0.59

Oxygen Scavenger Plus Liter 10.73 27.0 -1.52

• Object ships : 42 ships

Eco-Friendly Paint


Plan Results Plan Results

Tin Free Paint Re-painting(ship) 12 12 10 10

(Unit : unit/vessel)



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



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

Natural Ecosystem Preservation Efforts

Thinking that all staffs & executives’ small practice can devote to saving our planet, we

impressed on them issues of climate change through various education and publishing, and laid

base for performance of global leadership to think of planet. By this we spread entire company’s

eco-friendly campaign, and raise interest in forest, essential for green growth. Thus, Hyundai

Merchant Marine actively leads decorating Seoul forest, representing resting place of Seoul

citizens. 500plus staffs & executives of our company operated various activities like removing

weeds, fertilizing, planting seeds in Seoul forest. Acknowledged by this service, we received

prize of the largest time in forest decorating in companies and group part at the event of ‘Forest

Love Sharing’ held by Seoul City. And staffs & executives in Pusan region’s maritime affairs and

container part spread activities like tomb cleaning and removing weeds each Friday at UN

Memorial Park in Daeyeon-dong Pusan, keeping pace with Seoul forest decorating.

Green Box(Collect Waste Mobile Phone)

Forest Decorating

Forest Decorating

We have been selected as king of collection from Seoul Volunteer Center with event to collect

waste mobile phones after installing green boxes for resource utilization and environment

protection. Green Box Campaign is to practice environmental preservation and sharing by using

profits from collecting waste mobile phones in helping neighbors in need. Hyundai Merchant

Marine actively promotes recycling of other things beside waste mobile phones. We donate

things from staffs & executives by holding ‘ANABADA(conserve, share, change, re-use)’ event.

Green Box

Children Merchant Ship Experience School Hyundai Merchant Marine provides 40plus children from low-income families with chance to

experience wide world by letting have field trip of large container ship and museums. They were

impressed to send thank-you letter to Hyundai Merchant Marine. We will expand social

contributing activities that can aim at local community development and green management as

a global shipping logistics company

Children Merchant Ship Experience



Management of Eco-Friendly Supply Chain

Green Purchase means to minimize environmental effects from purchase stage by first

purchasing eco-friendly commodities like harmful chemicals-reduced material, resource-energy

saving materials, recycling materials. Hyundai Merchant Marine intends to practice green

purchase with establishment of eco-friendly product purchase policy to raise company’s value

through eco-friendly management.

Green Purchase

Promotion Activities

Though Green Purchase is defined as purchasing only parts and products which don’t 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 result of green purchase

promotion each year for it to be continuously expanded.

2010 Y 2011 Y

Green Purchase 9.55 11.88

(Unit : mill. USD)

Hyundai Merchant Marine is going to build green purchase system in 2012 through making

green purchase process. Building the system to purchase environment mark certified product

and eco-friendly materials, we continuously try to expand green purchase. As a part of it, we

first purchase environment mark certified product, excellent recycling mark product and energy

saving mark certified product and increase items through discovering of eco-friendly materials.



Greenhouse Gas Verification Greenhouse Gas Verification Statement

GMS Certificate

Hyundai Merchant Marine prepared base to more positively respond to climate change and int’l

society’s demand by building the system investigating calculating greenhouse gas emissions and

sources, being acknowledged with this system’s excellence upon verification through Korean

Register of Shipping, 3rd outside institution.

Green Management System(GMS) Certification

Hyundai Merchant Marine integrated part of standard for management system of energy,

greenhouse gas control and social responsibility, based on existing environmental management

system, being certified with green management system first in domestic shipping companies.

Awarded with Prize for Carbon Management Industry Leader

As a climate change project in 60 countries in the world, Hyundai Merchant Marine participates in

there since 2009. Especially, in 2011 we were awarded with prize for carbon management

industry leader in excellent company part which evaluates carbon management status of 200

companies with standard of domestic market capitalization.

Carbon Management Industrial Leader Award

Awarded with Prize of Minister of Land, Transport and Maritime Affairs

We were awarded with this prize of minister of Land, Transport and Maritime Affairs after

contributing to accumulation of domestic shipping companies’ capability who responded to

restriction of international society by active cooperating in national responding affairs, government

representing advisory, documents bill composing for climate change restriction, and executing

private-level climate change responding affairs, and propagating accumulated know-how to

industry

Awards

Certifications · Awards

Hyundai Merchant Marine continuously makes efforts for green growth through energy saving in

response to climate change convention and demand of interested people in domestic & overseas.



Eco-Friendly Excellent Ships

• Green Flag at Los Angeles/Long Beach harbor is granted with USCG Qualship 21

• Designated with National Maritime Police Agency “Green Ship”(21 vessels)

Shipping Companies’ Environmental Evaluation

• 3rd rank in CCWG Shipping companies environmental evaluation(2010)

• 3rd rank in Clean Shipping Project(2010)

• Corporate Governance Service’s environmental evaluation (14th rank among 500

companies, 1st rank in environmental evaluation among shipping companies)

Awarded with 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

Certifications

Secured Experts in Carbon Emission Rights Trade System

Shipping field is discussing restriction on greenhouse gas aiming at execution in

2017 focused on International Maritime Organization. Our country is needed for

thorough preparation for restriction on greenhouse gas as a bill for emission right

trade system is submitted for execution in 2015. Thus, Hyundai Merchant Marine

secures experts in carbon emission rights trade system to respond to this and

enhance profitability.

Agent for Carbon Emission Trade



Green Communication Activities

Hyundai Merchant Marine has built cooperative company EUKOR Car Carries’ greenhouse gas

management system jointly with Hyundai U&I for 6 months from April 2011. By this the

excellence of our greenhouse gas control system is secured and leading position in future

greenhouse gas field as well.

Participate in Carbon Information Disclosure Project(CDP)

This project is a climate change project being under way in 60 countries in the world. Hyundai

Merchant Marine voluntarily participated in CDP first in domestic shipping industry since 2009

and so far we clearly disclose strategy, plan and results of greenhouse gas reduction.

Built Cooperative Companies’ Greenhouse Gas Management System Greenhouse Gas Control System

Carbon Disclosure Project

SIMS held by KRS is top-class maritime affairs conference where maritime affairs industry

gathers. Representing domestic shipping companies, Hyundai Merchant Marine explained

international trend and our efforts and results with subject of ‘Green shipping and Korea

shipping companies’.

Participated in SIMS 2011 Conference

Hyundai Merchant Marine published a book ‘Greenhouse Gas Emission’ to reduce greenhouse

gas for staffs & executives’ understanding and participation. This book handles main issues of

greenhouse gas Hyundai Merchant Marine’s various activities and efforts.

Published Greenhouse Gas Emission Booklet Published a Book

Participated in SIMS 2011



We provide shippers with each ship’s environmental results from Clean Shipping Project, a

meeting of Sweden shippers. Especially, we’re going to provide shippers with exact information

through thorough verification in order to meet evaluation type changed in 2012.

Participated in CCWG

As a meeting that container shipping companies and large shipper companies voluntarily

participate for eco-friendly maritime transport, evaluation of shipping companies’ environmental

results are shared with shippers each year. And this meeting strengthens environmental

management for entire logistics sectors through cooperation with foreign institutions. Hyundai

Merchant Marine makes efforts for 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 actively responding to it through WSC established

to jointly meet problems happening in relation to container transport.

Participate in WSC World Shipping Council

Clean Shipping Project

Many customers and interested people of Hyundai Merchant Marine demand disclosure of

information about green management. We anytime clearly disclose information about green

management upon request of individual customers and interested persons and regular report as

well. Through this we cooperate with our eco-friendly value pursue and that of customers and

interested people.

Communication with Stakeholders



Status and Respond of International Environmental Restriction

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

restriction. Please refer to Green Activity & Performance for ODS, CO2, NOx, SOx, VOCs, EEDI, SEEMP,

Ballast Water Management Convention. International environmental restriction gets more intensified and

we will take every measures required to respond to these restrictions.



EEDI, SEEMP

~ could become mandatory on January 1, 2013

EEOI

EEOI guidelines may already be used on a voluntary basis

GHG market-based measures

Discussions ongoing at the IMO

Ship Recycling Convention

Entry into force is now expected between 2013 and 2015

VOC Management Plan

2020 1 Jul 2010

VOC Management Plans have been required since 1 July 2010

Anti-Fouling Systems Convention

Entered into force September 2008

Bio-fouling Guidelines

Entry into force is now expected between 2013 and 2015

Ballast Water Management Convention

Possible entry into force 2013~2015

Air Pollution Prevention

Restriction on air pollution materials discharged from ships gets gradually expanded globally. Especially,

restriction on SOx, NOx gets more intensified. In 2012 regulations of IMO Global Sulfur content got

lowered to 3.5% from 4.5% and each harbor adds additional restriction to prevent their country’s air

pollution. Hyundai Merchant Marine will open new chances to respond to these restrictions in advance.

0



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 require new ships after 20112 and current ships sailing around the world to install

this. Hyundai Merchant Marine is now operating Ballast Water Treatment System in each

container ship and will, in expansion, apply in the future.

Anti-Fouling Management

Attached organisms where aquatic life like anima, plan or microorganism is accumulated on

surface and structure of the hull exposed to sea cause movement of invasive aquatic life. IMO

developed guidance 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’s 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 of interest in navigational device loading to reduce accidents related to ships’

collision, stranding, Hyundai Merchant Marine responds to the regulation with general measures

through installation of facility and training upon mandatory applying 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’s dismantling, but it didn’t take effect until now. Though

mandatory laws didn’t take effect, Hyundai Merchant Marine has clear, safe and eco-friendly ship

dismantling procedures.

First, we make list harmful materials by identifying harmful materials like asbestos, PCBs, ozone

depletion substance. This list makes ship dismantling companies able to grasp information of harmful

materials and deal with securing of laborers’ safety and environmental preservation. When

dismantling ships we select safest and eco-friendly ship destroying place through prior investigation.

At this ship dismantling place we supervise entire process by dispatching qualified supervisor

through agreement with ship-dismantling company.

Institution Laws Contents Adoption

Taking effect

Remarks

UNEP

Basel Convention

Ban on harmful material move 1989 1992

• Korea ratification

Basel convention’s ban amendment

OECD countries’ mandatory disposal of harmful materials before destruction

1997

-

• Korea not ratified • Europe’s exclusive • taking effect

ILO ILO Guideline

Guidance for ship dismantling laborers’ safety

2004 -

IMO Ship recycling

convention

Define liability and duty of related persons upon ship dismantling

2009 -

• No ratified country

EU EU Regulation

1013/2006

Mandatory disposal of harmful materials before dismantling

2006 2007

Legal Regulations

STCW – Manila Convention

As ships’ large style and specialization gets accelerated, amendment of STCW Convention was

done in 2010 for crewmen’s training, standard of duty watch, and the concerned regulation took

effect on January 1 2012. Hyundai Merchant Marine makes effort to enhance crewmen’s welfare by

granting education and minimum break through Training Center.



Division Items A B C D Reduction

Potential (%)

Hull tolerance reduction

improving facility

Hull Cleaning/Blasting ● ● ● ● 1~3

Propeller polishing ● ● ● ● 1~3

Fuel saving paint ● ● ● ● 3~5

Propeller efficiency

improving facility

PBCF installation ● ● 3~5

Twisted leading edge rudder ● 1~3

Mewis Duct ○ ● 5

Engine efficiency

improving facility Main engine slide valve ● ● ● 1.5

Sludge/fuel reduction facility Homogenizer ● 1

Equipment operating/sailing

Energy consumption

Optimizer system ○ ● 5

Super slow steaming ● 25~40

Provide energy save operation/skill

guidance ● ● ● ● -

LO consuming improving

facility/operating

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

(Many facilities are under review)

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

Energy Saving Activities

Hyundai Merchant Marine invests various kinds of facilities for improvement of energy efficiency. In

consideration of feature of ships’ kinds, 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:Lngc C:Tanker D:Bulk ●: Applied, ○: Reviewed


Hull Cleaning/Blasting

When certain time passes after Dry Dock, effect of ship’s bottom coating gets weak and aquatic

life gets attached on the hull, increasing hull’s tolerance which requires spare horse power to

keep the same speed. This means additional fuel consuming and we gain ship’s energy saving

effect by regular execution of ship’s bottom cleaning.

• 1~3% fuel reduction

• 0.2~0.5knot speed improving

• Effects continued for 3~5 months after cleaning

Propeller Polishing

Regular propeller polishing gives a big help in increase of energy efficiency. In hull control and

observation system aspect, it has merit to check other part of hull during regular polishing.

• 1% fuel saving

• Effects continued for 3 months after polishing

Constant Speed Sailing

We realize fuel saving through increase/decrease of speed with setting of optimum course and

speed and reflecting remaining course/time in consideration of fuel consumption. We operate

constant speed sailing, considering weather, navigation information from inland with ETA

standard of clear ship speed guideline. In case of container ship we maintain ±0.3knot for target

speed.

Minimize Ballast Water Retention

Maintaining ballast water at minimum for ship’s propelling resistance, we try to save energy.

Generally, ship’s propelling resistance is proportional to 2/3 of discharged water amount. IMO

Minimum Ballast Condition is mentioned on ‘Loading Manual’.



Trim Optimization

Generally, ship’s hull resistance gets minimized under Even Keel condition is in full load.

Depending on how much of propeller is submerged, optimum trim is determined, but it changes

according to the type of ship’s Bulbous stern, hull type, the number of draft and ship speed.

Amount of Ballast Water should be arranged according to ship speed, sea condition and depth

and we sail after determining appropriate discharge water and trim as they give great influence

on fuel consumption.

Slow Steaming

Fuel consumption, that is energy consumption, is proportionate to 3 multiple of speed per hour,

influence on fuel consumption is big and is the most effective way in saving fuel. If not urgent on

schedule, we set sailing plan with low speed as possible and adjusting ETA and speed so as

not to arrive too early at next port of call.

Propeller Boss Cap Fin

As a kind of Propeller Boss Cap, we additionally install propeller Blade as small as the number

of it, applying technology to reduce Hub Vortex to improve energy efficiency.

Rudder Thrust Fin

By installing Thrust Fin, technology of lift power of airplane, on Rudder, 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 Cavitation minimizing, function

increase to recently built container ships.



Homogenizer

We apply facility that improves energy efficiency by improving combustibility and reducing

sludge by pulverizing particles of fuel oil with use of mechanic frictional force and ultrasonic

waves

Energy Save Type Paint

We reduce marine contamination with use of eco-friendly paint for outer plate of hull and gain

3~5% of fuel saving by reducing hull resistance with use of paint that naturally removes foreign

materials.

Improve 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 breakup of sludge inside fuel oil and increase of consuming

speed, that is, combustion intensity, and also aim at eco-friendly sailing along with reduction of

NOx, SOx, Soot and floating particles’ in discharge gas by making fuel oil minute and

homogeneous.

Alternative Maritime Power System

There’s fuel oil reduction effect in that it does not use ship’s generator in harbor and reduces

pollutants discharged into air by supplying power of ships from land during anchorage. The

trend is that harbors with mandatory AMP use gets increased due to each country’s restriction

on air pollution. Hyundai Merchant Marine plans to install AMP facility in ships and self-

supporting terminals in medium & long term.



Eco-Friendly Technology

Hyundai Merchant Marine is raising ship’s efficiency and reducing ship’s greenhouse gas with

continuous facility investment for eco-friendly ships. We improve engine efficiency by installing various

fuel-saving facility through attaching propeller boss cap fin, hull resistance reduction, ship propeller

efficiency improving equipment for improving propeller efficiency, and variable catch-fire distributor,

engine turbo supercharger cut-off device, fuel homogeneous device, with applying fuel-saving type

paint on ship. And we also reduce fuel oil use amount by sailing in economical speed. 5 container

ships of 13,100TEU are the ones with biggest size among vessels, which domestic shipping company

placed the order, and eco-friendly engine will be installed which minimizes CO2 emission and

maximizes fuel efficiency. WHRS

EGR/SCR

PSS

Becker Rudder ESS Fuel Saving Paint BWTS

Required EEDI : 16.0 Attained EEDI : 8.5



Green Technology Research Activities

Hyundai Merchant Marine participates in green ship Testing, Certification and Standard (TCS) system building

national task supervised by the Ministry of Land, Transport and Maritime Affairs. This system aims at building

green ship certification system to support commercialization through applying various green ship technology

and developing procedures and technical standards to verify green ship technology through this certification

system.

Built Green Ships TCS System

Hyundai Merchant Marine participates in national task for ships and maritime plant’s operational status life

cycle management technology development supervised 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 Operational Status 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


Report Index

Ministry of Environment’s guideline of environmental report Applied

level Contents of Report

1. Summary

1.1 CEO’s declaration ● 3~4

1.2 Company overview ● 5~8

1.3 Summary of environmental report ● Summary of report

1.4 Sketch ▲ Summary, 3~4

2. Environment vision and strategy

2.1 Environment policy ● 11, 15

2.2 Medium & long term environmental goal ● 15

2.3 Environment goal achieving results of the year ● 16, 29~45, 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 deliberation ● 23

3.4 Environmental education ● 24

3.5 Environmental results evaluation (EPE) ● 25

3.6 Environmental accounting ▲

3.7 Outside environmental investment ● 26

4. Environmental effects and results

4.1 Resource use ● 29

4.2 Water use ● 30

4.3 Energy use ● 30

4.4 Response to climate change ● 31~34

4.5 Use and emission of ozone depletion substance ● 35

4.6 Emission of air pollutants ● 36

4.7 Emission water contaminants ● 37~38

4.8 Discharge and recycling ● 39

4.9 Soil pollution control ▲

4.10 Environmental effects evaluation ● 40~41

4.11 Eco-friendly products ● 42, 61~66

4.12 Eco-friendly package ● 42, 61~66

4.13 Eco-friendly transport ● 42~44

4.14 Health•Safety ▲ 41

4.15 Noise•Vibration ▲ 41

4.16 Toxic chemicals management ● 45

5. Stakeholder partnership

5.1 Natural ecosystem preservation efforts ● 49

5.2 Eco-friendly supply control ● 50

5.3 Law observation ● Nothing

5.4 Certifications•Awards ● 51~52

5.5 Environmental communication activities ● 53~54

5.6 Response to int’l environmental restriction ● 55~58

6. Appendix

6.1 Report Index ● 69

6.2 3rd party verification opinions ▲

6.3 Definition of term ● 71~72

6.4 Questionnaire ● 70

6.5 Results of questionnaire analysis ▲

6.6 Each business place environment data ● 73


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

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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 factors like main feature of ship design, engine

function and trial operation result, as an engine

efficiency index upon ship design.

EEOI(Energy Efficiency Operational Indicator)

As an fuel efficiency index of actual sailing, 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 course, transportation rules, harbor

facilities.


MRO Product

Various office equipments 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 related1978 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 oxygene, happens

when nitrogen in air gets oxidized in high temperature

in combustion course. 7 kinds are known and the most

important one as pollution issue is NO, nitrogen oxide.

Representing nitrogen oxide emission source are cars,

airplane, ships, indusrial 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, but generally there are much of SO2 in

emission gas, though both of SO2 and SO3 happen when

sufur or fuel that conatins 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 through

respiratory organ. Commonly call venzene, formaldehyde,

toluene, ethylene, stylene 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 Emissions per Vessel

IMO number

Vessel name Cap. TEU

DWT (MT)

Main Trade Lane Ownership 2010 CO2

emissions (g/TEU·Km)

2011 CO2

emissions (g/TEU·Km)

Relative CO2 emissions to 2010

9254848 HYUNDAI CONFIDENCE 5500 68,020 Asia--Middle East/India Own 94 68 0.28

9128166 HYUNDAI HIGHNESS 5551 68,379 Asia--Middle East/India Own 85 69 0.19

9112260 HYUNDAI FREEDOM 5551 68,363 Asia--Middle East/India Own 80 68 0.15

9323522 HYUNDAI JAKARTA 6800 80,108 Asia-North America WC Own 67 59 0.12

9385001 HYUNDAI TACOMA 6350 72,982 Asia--Middle East/India T/C 75 66 0.12

9215842 HYUNDAI NATIONAL 6479 80,494 Asia--North America WC T/C 80 71 0.11

9332884 HYUNDAI LONGBEACH 6350 72,982 Asia--Middle East/India T/C 70 63 0.1

9346304 HYUNDAI BRAVE 8600 99,123 Asia-North Europe Own 54 49 0.09

9393319 HYUNDAI LOYALTY 8566 95,810 Asia--North Europe T/C 56 51 0.09

9305685 HYUNDAI SINGAPORE 6763 85,250 Asia--North America WC T/C 79 72 0.09

9215830 HYUNDAI REPUBLIC 6479 80,596 Asia--North America WC T/C 78 72 0.08

9112284 HYUNDAI GENERAL 5551 68,363 Asia--Middle East/India Own 75 70 0.07

9323508 HYUNDAI COLOMBO 6800 80,108 Asia-Middle East/India Own 68 63 0.07

9215828 HYUNDAI KINGDOM 6479 80,551 Asia--North America WC T/C 78 73 0.06

9330719 HYUNDAI UNITY 4700 63,439 Asia--North America EC Own 80 76 0.05

9393321 HYUNDAI SPLENDOR 8566 98,968 Asia--North Europe T/C 55 52 0.05

9347619 HYUNDAI SUPREME 4700 63,384 Asia--Mediterranean Own 73 70 0.04

9347542 HYUNDAI COURAGE 8600 99,052 Asia-North Europe Own 54 52 0.04

9347554 HYUNDAI FAITH 8600 98,967 Asia-North Europe Own 55 53 0.04

9347578 HYUNDAI DYNASTY 4700 63,254 Asia--North America EC Own 75 73 0.03

9393307 HYUNDAI MERCURY 8566 95,810 Asia--North Europe T/C 58 56 0.03

9305673 HYUNDAI TOKYO 6763 80,059 Asia--North America WC T/C 74 72 0.03

9215866 HYUNDAI PATRIOT 6479 80,551 Asia--North America WC T/C 80 78 0.03

9393022 HYUNDAI GLOBAL 8566 99,086 Asia--North Europe T/C 55 54 0.02

9149859 HYUNDAI ADVANCE 2174 24,766 Asia--Middle East/India T/C 92 91 0.01

9347580 HYUNDAI VOYAGER 4700 63,220 Asia--North America EC Own 76 76 0

9305647 HYUNDAI SHANGHAI 6763 80,262 Asia--North Europe T/C 66 66 0

9158587 HYUNDAI BRIDGE 2174 24,772 Asia--Middle East/India T/C 94 94 0

9347607 HYUNDAI GOODWILL 4700 63,439 Asia--North America EC Own 73 75 -0.03

9347592 HYUNDAI INTEGRAL 4700 63,157 Asia--North America EC Own 73 76 -0.04

9149823 HYUNDAI VLADIVOSTOK 2174 24,766 Asia--Middle East/India T/C 91 95 -0.04

9330707 HYUNDAI FORWARD 4700 63,439 Asia--Mediterranean Own 68 72 -0.06

9330721 HYUNDAI GRACE 4700 63,439 Asia--North America EC Own 65 69 -0.06

9347566 HYUNDAI FORCE 8600 99,043 Asia-North Europe Own 48 51 -0.06

9267936 HYUNDAI GLORY 4648 63,404 Asia--North America EC Own 71 77 -0.08

9158563 HYUNDAI PROGRESS 2174 24,766 Asia--Middle East/India T/C 75 82 -0.09

9158575 HYUNDAI HIGHWAY 2174 24,757 Asia--Middle East/India T/C 86 94 -0.09

9149861 HYUNDAI SPRINTER 2174 24,767 Asia--Middle East/India T/C 86 95 -0.1

9149847 HYUNDAI FUTURE 2174 24,799 Asia--Middle East/India T/C 92 104 -0.13

9323510 HYUNDAI BANGKOK 6800 80,108 Asia-North Europe Own 49 57 -0.16

9305659 HYUNDAI BUSAN 6763 80,102 Asia--North Europe T/C 51 65 -0.27

Container Only


HMM Europe

Hyundai Merchant Marine [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.

Hyundai Merchant Marine [Taiwan] CO., Ltd.

HMM [U.A.E] LLC

HMM [Jakarta]

HMM China

Hyundai Merchant Marine [China], CO., Ltd.

Shanghai

Qingdao

Tianjin

Dalian

Ningbo

Nanjing

Chengdu Global DOC Center

HMM America

Hyundai Merchant Marine [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]


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) and Hyundai

Merchant Marine America, Inc. (HMMA) established.

Both ISO 9002 certification and ISM code received.

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.

Deployed five 6,800 TEU container ships.

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.

Proclaimed new 「 4T 」 corporate culture.

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.

New Hyundai Pusan New-port Terminal opend.

Achieved best ever business results in sales and operating profit.

2011 Opened CUT(California United Terminal) at L.A., USA.

Ordered five 13,100 TEU container ships.

Launched New Vision-Statement.

Formed the world's largest shipping aliance ‘G6’ with APL, MOL, Hapag-Lloyd, NYK, OOCL.

2012 G6 Alliance moved to launch of Asia-Europe service.

Launched 13,100 TEU container ships.


This report was printed with soy-based ink on eco-friendly paper.

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Environmental Report 2012 - hmm21.com

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