Climate Change Response
Climate Change Response and Carbon Neutrality Management System
In line with the Korean government’s 2030 National Greenhouse Gas Reduction Target, YOUNG POONG is establishing a climate change and carbon neutrality management framework. The Sustainability Management Team is developing a strategic response system that encompasses the establishment of carbon neutrality goals and roadmaps, as well as improvements to the company’s greenhouse gas inventory system. At the Sukpo smelter, efforts to strengthen site-level climate action are underway, with the Environmental Management Team and the Production Planning Team supporting energy use monitoring and greenhouse gas emissions management. These teams also play a key role in facilitating external review and collaboration on emission reduction initiatives. The Board of Directors is regularly briefed on major climate change and carbon neutrality-related matters, including a report in 2024 on the company’s carbon neutrality strategy.
Climate Change Response Strategy
In alignment with the Nationally Determined Contributions (NDC) for greenhouse gas reduction, YOUNG POONG has established its climate change response strategy by setting a Net Zero 2050 target and developing an execution mechanism and implementation roadmap to achieve this goal. We aim to reduce emissions by 11.4% by 2030 and 60.0% by 2040, compared to the baseline year, ultimately reaching carbon neutrality by 2050.
Climate Change Risk Response Strategy
YOUNG POONG plans to manage climate change-related risks using a strategic mechanism that it has independently devised in order to respond to climate change and achieve the 2050 Carbon Neutrality Target.
Transition Risks
- Tracking Emissions trading system changes
- Manage emissions market price fluctuations
- Transparency in environmental disclosures
- Monitor market trends
- Developing and implementing production methods to achieve net-zero goals
- Tracking changes to the GHG emissions trading system
Physical Risks
- Enhancing Natural Disaster Emergency Response
- Facilities and equipment investments consider climate change
- Strengthen process durability against extreme climate conditions
- Developing climate-adaptive equipment models
Climate Change Response Indicators and Targets for Achieving Carbon Neutrality
YOUNG POONG has set achieving carbon neutrality by 2050 as the ultimate goal of its climate change response and has established mid- to long-term reduction targets and strategies to realize this goal. We plan to drive greenhouse gas reduction efforts through a comprehensive response strategy that addresses direct emissions from the production processes (Scope 1), indirect emissions from electricity consumption (Scope 2), and emissions across the entire supply chain (Scope 3). First, in the production process, we plan to reduce direct emissions by applying alternative fuel co-firing and carbon capture and storage (CCS) technologies to the dry zinc residue treatment process, as well as by electrifying passenger and off-road vehicles. In terms of electricity consumption, we aim to reduce indirect emissions through power efficiency projects within the smelter, the establishment of a photovoltaic (PV) self-generation system, the execution of long-term renewable energy power purchase agreements (PPA), and the purchase of renewable energy certificates (RECs). In addition, we will proactively respond to climate risks by implementing an offset strategy through the purchase of offset credits to compensate for residual emissions that are difficult to reduce.
- 23.2%
- Reduction of anthracite combustion emissions within the pyrometallurgical process by applying alternative fuel co-firing and carbon capture and storage (CCS) technologies
- 0.1%
- Reduction of mobile fuel emissions by electrifying passenger vehicles, two-wheeled vehicles, and off-road vehicles
- 4.8%
- Offsetting residual and non-reducible emissions through the purchase of offset credits
- 0.4%
- Implementation of power efficiency projects within the smelter to reduce annual electricity consumption by 0.5%
- 4.6%
- Installation of photovoltaic (PV) self-generation systems (0.37%) and purchase of RECs issued through equity investments (4.23%)
- 6.1%
- Execution of long-term renewable energy power purchase agreements (PPAs) of 10 years or more with renewable energy producers
- 60.8%
- Reduction of remaining Scope 2 emissions within the smelter and at other sites through the purchase of RECs
- Scope of Application: Residual emissions following the application of alternative fuel co-firing and carbon capture to anthracite combustion, anthracite used as a reducing agent; diesel locomotives, and heat production (propane); general buildings (LNG).
- YOUNG POONG Co., Ltd., YOUNG POONG Corporation and YOUNG POONG Green Metal Campus
Greenhouse Gas Emissions Management in the Production Process
YOUNG POONG measures emissions across seven environmental impact categories as defined by the Environmental Product Declaration (EPD) system for each ton of zinc ingot produced. These categories include the carbon and resource footprints, as well as the impact on ozone depletion, acidification, eutrophication, photochemical smog, and water footprint. The measurement boundary encompasses the stages from the production and transportation of raw materials (pre-manufacturing stage), to the manufacturing process.
Pre-Manufacturing Stage
Receipt of raw materials
Manufacturing Stage
Roasting process
Solution preparation
Electrolysis process
Casting process
Product Use Stage
Used as raw materials for hot-dip galvanizing, die-casting alloys, etc.
Product Disposal Stage
Disposal of general and designated waste
Energy Consumption Reduction and Efficiency Improvements
| Classification | Unit | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| KEPCO Power Consumption | Usage | MWh | 1,681,817 | 1,641,342 | 1,197,585 |
| Unit Price | KRW/kWh | 106 | 145 | 171 | |
| Amount | KRW million | 178,861 | 238,354 | 205,120 | |
| STG | Power Generation | MWh | 154,296 | 148,276 | 64,257 |
| Unit Price | KRW/kWh | 106 | 145 | 171 | |
| Amount | KRW million | 16,409 | 21,532 | 9,506 | |
| Total Usage | Usage | MWh | 1,836,113 | 1,789,617 | 1,261,842 |
| Unit Price | KRW/kWh | 106 | 145 | 171 | |
| Amount | KRW million | 195,271 | 259,886 | 214,626 | |