Korea Shipbuilding & Offshore Engineering

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.

KSOE’s scope 3 emissions reduction target cannot be assessed due to lack of data. Since the company has not planned for ambitious interventions, no significant mitigation of emissions linked to its sold products is expected. No evidence was found of the company phasing out its manufacturing of fossil-fuel powered ships.

KSOE has carbon neutrality strategies for scope 1 and 2 emissions but not for scope 3. The company does not have a commitment to phase out the manufacturing of fossil-fuel powered vessels. KSOE delivered the world’s first methanol-fuelled large container ship in 2024. However, this business model is in the very early stages and lacks a quantified growth plan.

KSOE does not disclose its total or low-carbon capital expenditure (CapEx) planned for 2023-2025. The company invested USD 124.41 million in research and development (R&D) in 2023. However, it does not disclose what proportion of its R&D expenditure was allocated to low-carbon vessels and energies.

KSOE has no clear strategy, promotional initiatives or financial incentives to influence client demand for low-carbon transport alternatives. For now, the company’s activities seem to be limited to responding to customer demand. While KSOE has begun to engage with its suppliers, it needs to be consistent in translating its implemented supplier engagement strategy into concrete actions to drive significant greenhouse gas (GHG) emissions reduction.

No evidence was found of the company’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 the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its 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 action 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.   The company discloses the actions it takes to provide reskilling and upskilling opportunities for workers and affected stakeholders. For instance, it provides job competency training with a focus on core technologies, such as liquefied gas technology, ship electrification and digital transformation. However, no relevant disclosure was found of the company 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 the company 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 the company 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.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to ensuring worker health and safety and expects the same from partners, though it can improve its disclosure on this topic. Further, the company reports paying reasonable wages but does not clarify if these meet living wage standards or specify how these are determined. While it complies with laws for working hours, it does not confirm that overtime is consensual and paid at a premium. The company discloses workforce gender data, but it does not report additional indicators of workforce diversity, such as race or ethnicity, and lacks a public commitment towards gender equality or women’s empowerment.

The company includes anti-bribery and anti-corruption clauses in its contracts with business relationships and discloses its expenditures on lobbying activities. However, no policies or commitments of the company related to other key ethical business topics – personal data protection, tax and political engagement – were found in the public domain.