The power of Hyundai Glovis! Shipping division leading the way to the future of ‘green shipping’

The new year brought good news to the shipping division of Hyundai Glovis, which received a citation from the Minister of Oceans and Fisheries. As the award was given in recognition of the shipping division’s contributions to the development of the shipping industry, we talked to Hyundai Glovis about what it is doing right now to promote eco-friendly shipping.

(From left to right) Senior Manager Byun Jae-nam, Team Leader Kim Kyung-tae,
Group Leader Kwon Chi-oh, and Senior Manager Lee In-ki

Hyundai Glovis has been striving for eco-friendly shipping to become carbon neutral by 2045. In particular, since the launch of the ‘Shipping Future Competitiveness Enhancement Task Force’ in July last year, the company has received positive reviews for its responses based on leading measures.

In March 2022, the ISSB (International Sustainability Reporting Standards Board), affiliated with the IFRS (International Financial Reporting Standards), issued ESG disclosure standards, explicitly requiring the management and reporting of SCOPE3 (external emissions from the entire value chain, including suppliers and logistics). Group companies and global automakers manage and reduce carbon emissions during maritime transportation in line with this trend. To decarbonize, Hyundai Glovis aims to improve the energy efficiency of ship operations in the short term and switch to eco-friendly fuels for ships in the mid-to-long term.

The Shipping Future Competitiveness TFT says high-quality ship operation data can be accumulated through decarbonization, digitalization, and 2D. Improvements can be found based on quality data analysis; through this process, the goal of ‘zero carbon emissions’ can be achieved.

It is worth noting that Hyundai Glovis and the Shipping Future Competitiveness Task Force are already working to secure the oceans of the future by collaborating with companies and research institutions in various countries. On January 30, Hyundai Glovis signed a memorandum of understanding with HD Korea Shipbuilding & Marine Engineering, Australia’s largest energy company, Woodside Energy, and Japanese global shipping line Mitsui O.S.K Lines (MOL) to develop a liquefied hydrogen transportation chain. Under the agreement, the partners will jointly develop technologies aimed at efficient and low-carbon hydrogen marine transportation. Hyundai Glovis and HD Korea Shipbuilding & Marine Engineering have jointly developed a maritime value chain solution since 2022, considering the environment and ship operations for importing and exporting liquefied hydrogen.

Through maritime logistics research, Hyundai Glovis and Woodside have selected a 60-80,000 ㎥ hydrogen carrier suitable for hydrogen transportation between Australia and Asia, and the addition of MOL, which has decades of experience in the transportation of liquefied natural gas, will further enhance the global hydrogen transportation business model.

Hyundai Glovis is also actively responding to issues related to climate change. We are expanding domestic and overseas cooperation in eco-friendly energy, continuously updating data on biodiesel blended marine oil to promote eco-friendly ship fuel, and introducing new technologies such as research and development of ammonia-hydrogen carriers. In 2024, we plan to develop an advanced fuel system module and a carbon cost management module to supply and manage various low-carbon and decarbonized oil types, such as biofuels, LNG, and ammonia.

These efforts culminated in the Hyundai Glovis Shipping Division receiving the Minister of Oceans and Fisheries Award in December 2023, objectively recognizing its contribution to the eco-friendly shipping industry as a whole.

You must set new goals if you want to change and innovate, from individuals to companies to countries. Then, through a long process of preparation, you accumulate small results, bringing you closer to your goal. The new goal of today is to create the future of you, your company, and your country. In this context, we met the people, making the “future” of Hyundai Glovis. “This moment, right now, is our future, our dream,” they said.

I heard the shipping division received the Minister of Oceans and Maritime Affairs Citation. Congratulations! What are your thoughts on the award?

I feel that the Minister of Maritime Affairs and Fisheries award was received on behalf of the entire company. I don’t think it’s just that the shipping division did something particularly well, but I think it’s the future of today’s aspiration that Hyndai Glovis people should make something happen. So after receiving the award, I thought, “Let’s enjoy doing our job more now, right now, today.”

Last year was a time when Hyundai Glovis was objectively evaluated by the Ministry of Oceans and Fisheries and related organizations for our work and achievements. On November 8, Hyundai Glovis was awarded the top prize at the 1st Korea Port Safety Award Competition. On December 22, Hyundai Glovis Shipping Division received a citation from the Minister of Oceans and Fisheries “in recognition of its contribution to the development of the Korean shipping industry”.
Both of these awards are even more significant as they were received after the establishment of the Shipping Future Competitiveness Task Force on July 17 last year.

Why do you think Hyundai Glovis Shipping has been recognized with these awards?

Hyundai Glovis is actively responding to climate change-related issues to become carbon neutral by 2045. We continuously discover means to reduce greenhouse gas emissions and implement decarbonization and digitalization to create an eco-friendly logistics operation system.
The reason why we won the two awards is because our corporate philosophy and business operations are in line with the shipping industry’s direction to become eco-friendly.

Incidentally, Hyundai Glovis announced its “2045 Carbon Neutrality Goal” in 2022. We have been preparing leading countermeasures one step ahead of the IMO’s (International Maritime Organization) 2023 Greenhouse Gas Reduction Strategy. As an extension, the TFT for the Future Competitiveness of Shipping was promoted and established.

I want to say that Hyundai Glovis has been growing since its establishment in 2001, and in 2020, we were recognized as the best environmental company among 1608 companies and organizations in Korea and received the Minister of Environment Award. This means that Hyundai Glovis has been given the responsibility and role of a company representing Korea.

The Marine Environment Protection Committee (MEPC) adopted the strategy at its 80th session to achieve carbon neutrality in international shipping in 2050. To reduce total greenhouse gas emissions by 20-30% by 2030, 70-80% by 2040 compared to 2008 levels, and finally to reach a target of ‘zero’ emissions by 2050.

What have been the tasks and directions of the Shipping Future Competitiveness Task Force in the six months since its establishment?

We have identified the rapidly changing global shipping environment and the challenges facing the domestic and international industries, and we have divided our efforts into two main areas: applying and realizing them now and preparing for the future. However, the temporal concept of today and tomorrow is only a necessary distinction for business planning and execution, but complexity co-occurs. Just as there is no boundary between today and tomorrow, and the earth’s rotation and revolution co-occur, our tasks are carried out continuously.

The Shipping Future Competitiveness Task Force was launched in July last year as a strategic response to adopting the “2023 Greenhouse Gas Reduction” announced by the IMO at the 80th MEPC and as part of our future business. Hyundai Glovis has been preparing for ESG management and the IMO’s maritime environmental regulations for a long time, so we have taken the initiative before other companies. Currently, we are working on preparing measures for maritime ecological regulations as a short-term task, collaborating with experts to establish a carbon and greenhouse gas management system as a mid-to-long-term task, and working with the idea of creating a future-oriented system.

To give a specific target year, the goal is to achieve the company-wide deoxygenation plan by 2030. In the short term, it is to “respond to marine environmental regulations and establish a mid-to-long-term carbon and greenhouse gas management system.” As Hyundai Glovis strives for eco-friendly shipping, focusing on decarbonization and digitalization, we will do our best.

This process will be challenging, but I am not worried because there is a ‘we’ called Shipping Future Competitiveness TFT and a bigger ‘we’ called Hyundai Glovis. There will be significant and small stresses, but they are just thresholds we can handle.

I am reminded of Montaigne’s quote, “The wind does not propel a ship without a destination.” Seven of my colleagues and I are on board a TFT called “Strengthening the Future Competitiveness of Shipping.”
If we don’t have the support of a giant mothership called Hyundai Glovis. We will be ready and prepared to help the mothership, Hyundai Glovis, navigate through bigger waters.

– Kwon Chi-oh, Head of Shipping Business Strategy Group

Please introduce the members of the Shipping Future Competitiveness TFT and how the task was executed.

Kwon Chi-oh leads the Shipping Future Competitiveness Task Force, including Team Leader Kim Kyung-tae, Senior Manager Byun Jae-nam, Senior Manager Baek Beon, Senior Manager Jung Gui-young, Senior Manager Chae Mi-ran, and myself. These people have been accomplishing tasks in the core business of Hyundai Glovis. Our TFT’s approach to task execution is based on Team Leader Kim Kyung-tae’s words, “We should not be afraid to bring any report to the table,” and we practice it as a code of conduct.

The result of any task we undertake will always be fruitful after many mistakes and failures, so we need to be fearless to move things forward, and that’s our strength. Also, although our TFT is independent, it is not separate from the larger structure of Hyundai Glovis. Therefore, cooperation within the organization is of utmost importance. I will do my best to cooperate and collaborate with all members of Hyundai Glovis in the future, as I have done so far.

Any final thoughts you’d like to share?

French futurist Jacques Akali once said, “The country that controls the sea becomes the world’s superpower.” In that sense, I think our team’s name is our slogan: “To strengthen the future competitiveness of shipping with Hyundai Glovis!” We are always saying it in our hearts.

By Editorial Department