In December 2015, we declared our support for the COP21 (The 21st Conference of the Parties to the UN Framework Convention on Climate Change) and established our own voluntary carbon reduction plan. In addition, in order to achieve the mid- to long-term greenhouse gas reduction target established in 2009, we set the goal of reducing greenhouse gas intensity by 50% from 2010 until 2020. Meanwhile, 2020 is approaching, we are in the process of reviewing mid- to long-term greenhouse gas reduction targets for 2030, 2040 and 2050 based on the SBT (Science Based Target).
Although we are not subject to the government's greenhouse gas and energy control, we participate in the climate change mitigation efforts. Each year, we work towards our mid- to long-term greenhouse gas reduction goals, and acquire and disclose third-party assurance voluntarily. Furthermore, our employees and partners join their efforts in saving energy and minimizing greenhouse gas emission in all our production and sales sites.
At Coway, we are increasing the use and application of renewable energy by installing solar power generation facilities at our production sites to enhance energy efficiency. Since 2016, we have applied smart technology in the production facilities to reduce greenhouse gas emission and improve operational efficiency while introducing solar power generation, ESS (Energy Storage System) and LED lighting in our major production sites.
We operate solar power generation facilities at Yugu Plant (49.5 KWh), Incheon Plant(39 KWh), and Pocheon Plant (45 KWh) as well as our logistics center (48.8 KWh), and reduced greenhouse gas emission by 96 tons by generating 206,478KW of power in 2017. In addition, we established ESS (Energy Storage System) in Yugu Plant and reduced the peak load by distributing energy usage, saving KRW 140 million in costs in 2017. Meanwhile, we improved the working environment by installing LED lights at Yugu Plant and logistics center and managed to save more than KRW 70 million in energy costs.
| Classification | 2015 | 2016 | 2017 |
|---|---|---|---|
| Facilities Installation Cost (KRW 100M)1) | 1.7 | 11.9 | 2.1 |
| Reduction of Energy Consumption vs. previous year (KWh/year) 2) | 189,457 | 900,435 | 979,6543) |
At Coway, we formed carbon partnerships with our suppliers to help them reduce their energy consumption and gain competitive advantage when it comes to energy efficiency. In addition, we identify areas of improvement through energy analysis of suppliers on an annual basis and improve the energy/greenhouse gas emission of our supply chains while minimizing the risks caused by climate change. In 2017, 26 suppliers were certified for the Green Partnership.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Emission(tCO2e) | 36,181 | 40,994 | 40,767 |
| Intensity(tCO2e/KRW100M) | 8.46 | 8.02 | 7.44 |
Greenhouse gas emissions from suppliers are based on 26 suppliers of Coway carbon partners.
In the 2017 greenhouse gas verification, the steam consumption of waste incinerated by one of the partner companies is excluded from the estimation of emissions based on the GHG Management Guidelines
Steam consumption of waste incinerated heat, excluding emission calculation: 26,848 tCO2e (indicating steam-containing value for previous year comparison)
Business Case
Recognized by CDP (Korean Committee for Carbon Disclosure Project) for our excellent response to climate change, we have been selected for the Carbon Management Sector Honors for 9 consecutive years. The CDP is a global project and non-profit organization based in the UK, which discloses information about environmental management of major companies listed in the stock markets, focusing on their response to climate change and environmental issues concerning water and forest resources.
We were selected for “Carbon Management Sector Honors” for our energy-saving activities such as introduction of ESS (Energy Storage System), smart factory project, solar power generation facilities, and LED lighting in our production facilities.
