Daewoo Shipbuilding & Marine Engineering Develops Industry-First ESG Evaluation Metrics Specialized for Shipbuilding Industry

Development of 146 Indicators with Korean Register (KR)
First Application at Okpo Shipyard
Applied to Equipment and Partners... Expanding Foundation for Mutual Growth

The operation of a shuttle tanker equipped with Daewoo Shipbuilding & Marine Engineering's latest eco-friendly technologies, including equipment capable of using LNG and LPG as propulsion fuels and Volatile Organic Compound Recovery System (VOC RS). Photo by Daewoo Shipbuilding & Marine Engineering

[Asia Economy Reporter Choi Seoyoon] Daewoo Shipbuilding & Marine Engineering (DSME) announced on the 22nd that it has developed the industry's first ESG (Environmental, Social, and Governance) evaluation indicators specialized for the shipbuilding industry and applied them for the first time at the Geoje Okpo Shipyard.

Since December last year, DSME has collaborated with the Korea Register (KR), the only internationally accredited classification society in Korea, for nine months to develop ESG evaluation indicators tailored to the shipbuilding industry, creating a total of 146 indicators. These indicators are designed to practically evaluate ESG promotion activities according to the characteristics of the Korean shipbuilding industry. As a result, DSME is recognized as a leading shipbuilding company with a substantial ESG management system to achieve sustainable growth.

ESG management is emerging globally as a new paradigm encompassing industries and the overall economy, and individual companies are increasingly recognizing its importance. Against this backdrop, DSME has focused on related research, recognizing the urgent need for effective ESG evaluation systems and tools.

The newly developed shipbuilding-specific indicators aim to meet global standards while identifying appropriate issues based on the realities of the Korean shipbuilding industry, assigning weights to provide practical assistance in corporate sustainable management activities and strategy formulation. The company is particularly focusing on specialized items related to safety, eco-friendly and smart ship technologies, related patents, and labor-management culture.

First, in the environmental sector, 48 indicators were prepared, including environmental management and performance, and eco-friendly investment items. In the social sector, 44 items were reflected, covering workers, partners, other stakeholders, and legal compliance. In the governance sector, 54 indicators were selected, including the board of directors, shareholders, auditors, and ethical management.

Woo Jehyeok, Vice President and Head of DSME’s ESG Promotion Team, said, “This achievement is significant as it is the result of joint efforts by both companies to develop ESG evaluation indicators suited to the characteristics of our shipbuilding industry. We will not be satisfied with this and will gradually raise the level to meet global ESG management standards.”

A Korea Register official stated, “These indicators are intended not only to evaluate ESG management but also to provide practical help in establishing sustainable management strategies and improving performance. We will continue to actively cooperate with DSME to proactively respond to international maritime environmental changes.”

DSME plans to use these evaluation indicators to regularly diagnose internal ESG management activities and disclose the results in its sustainability management report. It also plans to apply them to equipment suppliers and partners to expand the foundation for mutual growth and co-prosperity.

This content was produced with the assistance of AI translation services.