[비즈한국] It has been confirmed that among South Korea’s top five listed construction companies, three successfully reduced their greenhouse gas emissions last year, with the exceptions of Daewoo E&C047040 and GS E&C006360. The construction industry has set a goal of achieving carbon neutrality, or net-zero greenhouse gas emissions, by 2050. However, it appears that the industry has yet to establish consistent methods for calculating emissions or setting targets, let alone achieving significant reductions.
According to an analysis of the sustainability reports from the top five listed construction firms—Samsung C&T028260, Hyundai E&C000720, Daewoo E&C, DL E&C375500, and GS E&C—the total direct and indirect greenhouse gas emissions (location-based Scope 1 and 2) produced by these companies in Korea and abroad last year reached 802,247 tons of CO2 equivalent (tCO2eq). Daewoo E&C and GS E&C saw an increase in emissions compared to the previous year, while Samsung C&T, Hyundai E&C, and DL E&C saw a decrease. The total reduction by these three companies amounted to 123,624 tCO2eq, which is roughly 20% of their 2023 emission levels.
Daewoo E&C and GS E&C both saw their greenhouse gas emissions rise. Daewoo E&C’s direct and indirect emissions from its domestic operations last year were 61,064 tCO2eq, an increase of about 5% compared to the same period the previous year. GS E&C’s direct and indirect emissions also rose by about 5% from 2023, reaching 131,438 tCO2eq. Both companies appear to have met their internal emission targets. Previously, Daewoo E&C only measured and disclosed emissions for its domestic sites, but starting this year (covering last year's emissions), it has included overseas sites in its disclosures. Last year, Daewoo E&C’s total direct and indirect emissions, including overseas sites, reached 164,736 tCO2eq.
However, Daewoo E&C still limits its disclosed reduction targets to domestic operations. A Daewoo E&C representative explained, “We began disclosing emissions from overseas sites in this year’s sustainability report. While we have sufficient data to set targets for our domestic operations—which we have been reporting for quite some time—it is still too early to publish targets for overseas sites, as our reporting process for those locations is still in its infancy.”
Samsung C&T, Hyundai E&C, and DL E&C reduced their emissions. Last year, direct and indirect emissions for Samsung C&T fell by about 4% year-on-year to 195,762 tCO2eq, and for DL E&C by 6% to 59,630 tCO2eq. Hyundai E&C changed its measurement method, resulting in a 31% year-on-year reduction in direct and indirect emissions to 250,670 tCO2eq. All three companies that successfully reduced emissions last year are understood to have met their internal emission targets.
A Hyundai E&C representative stated, “Following recommendations from an external verification agency, we changed our calculation method for overseas construction sites, which had previously been over-calculated. The change resulted in a minor adjustment of approximately 40,000 tCO2eq. This does not significantly affect our mid-to-short-term goals, and we intend to reflect this when we review our reduction targets against international standards (SBTi) in the future.” They added, “Hyundai E&C’s reduction targets were the first among domestic listed construction firms to receive SBTi approval, and we are currently reducing emissions at a level that exceeds international standards.”
Most of South Korea’s top five listed construction companies set goals around 2020 to reach net-zero greenhouse gas emissions. Samsung C&T, Daewoo E&C, and DL E&C plan to achieve carbon neutrality by 2050, while Hyundai E&C aims for 2045. Although GS E&C has not yet announced a carbon neutrality plan, it has set a goal to reduce emissions by 31.86% by 2050 compared to 2018 levels. Previously, the Intergovernmental Panel on Climate Change (IPCC) suggested that to limit global temperature rise to within 1.5℃, carbon neutrality must be achieved by around 2050. South Korea first announced its "2050 Carbon Neutrality Plan" in October 2020, and the industrial sector has since joined the effort.