HD Hyundai Site Solutions Publishes 'TCFD Report' Outlining Climate Change Response Strategy

The First Publication Case in the Domestic Construction Machinery Industry

HD Hyundai Site Solutions announced on the 21st that it has published the 'Task Force on Climate-related Financial Disclosures (TCFD) Report 2022,' which contains climate change response strategies to realize a sustainable future for HD Hyundai Construction Equipment division. This is the first case of publication in the domestic construction equipment industry.

Since declaring 'carbon neutrality by 2050' last year, HD Hyundai Site Solutions released its first TCFD report reflecting the will and efforts of HD Hyundai Construction Equipment division's climate change response activities. The TCFD is an international consortium established in 2015 by the Financial Stability Board (FSB) of the Bank for International Settlements (BIS) at the request of the Group of Twenty (G20) to promote disclosure of climate-related information.

The recommendations of the TCFD, established in 2017, require companies to disclose climate-related financial information such as corporate governance and strategy, risk management, and management indicators and reduction targets. The TCFD report released by HD Hyundai Site Solutions also reflected the four items required by these recommendations.

HD Hyundai Site Solutions 2022 TCFD Report Cover /
[Image provided by HD Hyundai Site Solutions]

HD Hyundai Site Solutions analyzed potential financial impact scenarios related to transition risks and opportunity factors in the process of shifting to a low-carbon economy. It also examined scenarios for physical risks such as coastal flooding and extreme heat. The report includes not only carbon neutrality plans and greenhouse gas reduction activities at domestic and overseas business sites but also the results of value assessments for eco-friendly products such as hydrogen excavators and forklifts.

Additionally, to achieve carbon neutrality by 2050, it specified indicators and targets for greenhouse gas emissions, energy consumption, and carbon emissions during the product usage phase. Greenhouse gas emissions from HD Hyundai Construction Equipment division accounted for about 8% at domestic and overseas business sites and 88% during the product usage phase of construction equipment.

HD Hyundai Site Solutions stated through this report that it will reorganize its portfolio focusing on products integrated with eco-friendly technologies. It concretized a roadmap to reduce product usage phase emissions by 25% based on one year of use by 2040 and to achieve carbon neutrality at business sites by 2050.

HD Hyundai Site Solutions explained, "We will equip the telematics system, which is mandatory for medium and large equipment, with a function to calculate product carbon emissions," and added, "We plan to continuously implement strategies to reduce carbon emissions during product use."

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