Hanwha Ocean

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Hanwha Ocean has set a target to reduce its scope 1 and 2 emissions by 40% by 2030 compared to 2018, and by 100% by 2050. Although these targets are aligned with its 1.5°C pathway, the company has not set a target to reduce its scope 3 emissions, which represent the biggest share of its emissions. Moreover, between 2019 and 2023, Hanwha Ocean saw an increase in its scope 1 and 2 emissions. This contrasts with the company’s 1.5°C pathway, which requires it to decrease its absolute emissions at an annual rate of 4.2%. Furthermore, Hanwha Ocean’s scope 3 emissions have increased between 2020 and 2023, and the company does not report robust data to assess its past emissions intensity trend.

Hanwha Ocean has developed a low-carbon transition plan, which covers both short- and long-term actions targeting its scope 1 and 2 emissions, as well as provides financial projections and uses an internal carbon price. The company has conducted a climate scenario analysis to inform its transition plan and ensure its ambition is sufficient for a 1.5°C pathway. However, the company’s transition plan does not include targets for its scope 3 emissions. To ensure alignment with a 1.5°C pathway, the company should include targets that cover this major source of emissions. Moreover, while Hanwha Ocean has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise.

Hanwha Ocean invested USD 37 million in research and development (R&D) in 2023. However, the company does not disclose what proportion of its R&D expenditure was allocated to low-carbon technologies. Moreover, Hanwha Ocean does not disclose its planned capital expenditure (CapEx) on low-carbon and mitigation technologies, nor its revenues from low-carbon sources.

Hanwha Ocean’s supplier engagement strategy does not specifically cover climate change or greenhouse gas (GHG) emissions reduction. The strategy also does not specify any other recommendations related to the low-carbon transition. Further, there is no evidence that Hanwha Ocean has a client engagement strategy in place to influence its clients to reduce GHG emissions. Even though the company publicly supports initiatives like the Paris Agreement, it does not have a process to monitor and review climate policy positions of its industry and trade associations.

No evidence was found of Hanwha’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of Hanwha undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Moreover, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment was found stating Hanwha’s intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. Hanwha discloses the actions it takes to provide reskilling and upskilling opportunities for workers and affected stakeholders. For instance, it provides job training and in-house instructor training programmes with the aim of strengthening the competitiveness of its workforce in response to the changing business environment. However, no relevant disclosure was found of Hanwha embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if Hanwha identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how Hanwha identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers

No policies or commitments of Hanwha related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain. The company does, however, have a grievance mechanism available to workers and external stakeholders.

No evidence was found of Hanwha’s commitment to respecting the health and safety of its workers, nor of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. Hanwha discloses some indicators of workforce diversity, including the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity.

No evidence was found of Hanwha’s commitment regarding the collection, sharing and access to personal data. The company does not disclose its global tax strategy nor the corporate income tax it pays in each relevant jurisdiction. However, the company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. No relevant disclosure was found of Hanwha’s expenditure on lobbying activities.