who is the highest decision-making body.
Based on this, the CEO deliberates on risk management and related plans for climate change adaptation.
In addition, since 2023, GS Energy has been operating the GS Energy ESG Committee, with the ESG Office at its core,
with participation from relevant departments and major subsidiaries.
This committee is responsible for formulating climate change responses strategies, identifying specific action items,
and discussing climate change-related issues, including greenhouse gas emissions and reduction progress in subsidiaries,
and reporting them to the management. The committee also manages risks and opportunities.
The ESG Committee holds one practical meeting and one general meeting with participation from ESG responsible executives from subsidiaries
to discuss the progress of ESG strategic tasks, including climate change adaptation.
In the future, an ESG database will be developed to monitor and discuss trends in emissions, water usage, water quality, waste disposal,
and other aspects over a three-year period, as well as to monitor climate change risks and opportunities regularly.
As of 2023, each company is in the process of formulating and implementing medium to long-term carbon reduction plans, climate disclosure strategies, and specific tasks.
Climate Change Response System
- Executive Committee
- Working Session
analyzing relevant opportunities and risks associated with it.
In particular, with regard to opportunity factors, GS Energy aims to pioneer new markets in four key areas: green energy portfolio, clean hydrogen economy infrastructure, smart power solutions, and circular resource ecosystems, in anticipation of the upcoming carbon-neutral era in 2050.
Meanwhile, major subsidiaries (GS Power and Incheon Comprehensive Energy) are actively engaged in proactive pre-response measures to climate change-related risks, focusing on projects such as the recovery of unused energy at their facilities, the distribution of energy-efficient equipment, and certification for eco-friendly and low-carbon products, as well as efforts to reduce greenhouse gas emissions.
| Category | Impact | |
|---|---|---|
| Opportunity | Energy Source |
· Increase in business opportunities related to low-carbon, zero-carbon, and renewable energy due to energy transition · Expansion of low-carbon energy supply and generation · Increasing demand for renewable energy to achieve carbon neutrality and RE100 goals |
| Product · Service |
· Growing demand for products and services to address intermittent renewable energy sources · Expansion of demand for ICT-based products and services, such as power solutions · Expansion of adoption of carbon emissions management solutions, including scope 3 emissions |
|
| Marketplace |
· Increased investment in climate tech-related startups and venture capital · Activation of eco-friendly business investments due to the expansion of green financ · Activation of carbon emissions allowance development and trading markets |
|
| Resource Efficiency |
· Growth of the resource reuse and recycling market · Increased demand for improving building energy efficiency and optimizing transportation |
|
| Resilience |
· Formulation of investment strategies considering the impact of climate change · Fundraising with consideration of climate risks · Enhancement of portfolio resilience for climate adaptation · Adoption of energy efficiency measures in business facilities |
|
| GS Energy Strategy | GS Energy Activities | Duration | |
|---|---|---|---|
| Short Term | Medium to Long Term | ||
| Expansion of Green Energy Portfolio |
· Renewable Energy Generation Projects - Solar Energy · Small Modular Reactor (SMR) Technology Investment · Providing RE100 Solutions Based on Solar Energy |
||
| Leading the Restructuring of the Clean Hydrogen Economy Infrastructure |
· Proactive Introduction of Clean Hydrogen and Ammonia · Establishment of Hydrogen and Ammonia Supply Infrastructure · Investment in Hydrogen Leakage Detection Systems |
||
| Leading the Smart Strategic Solution Market |
· Securing Full Value Chain for Electric Vehicle Charging Solutions · Establishment and Securing of Operation Capacity of Virtual Power Plants (VPPs) · Development of High-Efficiency, Eco-Friendly Electric Vehicle Charging Facilities |
||
| Establishing a Circular Resource Ecosystem |
· Electric Vehicle Battery as a Service (BaaS) Business · Recycling and Reuse of Waste Electric Vehicle Batteries · Investment in Battery Diagnosis and Next-Generation Battery Technologies · Investment in Power Systems Using Radioactive Waste Recycling |
||
Short Term: 1~3 years, Mid-Long Term: More than 3 years
| Category | Financial Impact | |
|---|---|---|
| Transitional Risk | Regulation |
· Carbon emission rights shortage and price increase risk due to strengthened greenhouse gas reduction targets · Risks from various climate-related lawsuits |
| Technology |
· Investment risks for the development of proactive greenhouse gas reduction technologies · Revenue decline and investment loss due to failure in the verification and commercialization of eco-friendly technologies |
|
| Marketplace |
Profitability weakening due to increased raw material procurement costs during the fuel transition process |
|
| Reputation |
Increased interest from customers, investors, and other stakeholders in the power generation industry regarding fuel transition |
|
| Physical Risk | Short Term |
Increased production facility damage and maintenance costs due to short-term natural disasters such as heatwaves, wildfires, and floods |
| Long Term | Operational risks for production facilities due to long-term climate change, such as rising sea levels | |
| Subsidiaries and Investment Companies | Subsidiaries and Investment Companies' Response Activities | Duration | |
|---|---|---|---|
| Short Term | Mid · Long Term | ||
| GS Energy |
· Pursuing the acquisition of domestic and international offset emissions rights linked to new business investments · Participation in joint projects to assess the feasibility of CCU initiatives |
||
| GS Power |
· Promoting the direct import of LNG to reduce fuel costs · Unused energy recovery projects · Deployment of energy-efficient equipment · Compliance with emissions trading schemes and activities to reduce greenhouse gas emissions |
||
| Incheon Total Energy |
· Unused energy recovery projects · Certification of environmentally friendly and low-carbon products · Compliance with emissions trading schemes and activities to reduce greenhouse gas emissions · Evaluation of the applicability of Carbon Capture technologie |
||
| New Pyeongtaek |
· Pursuing the direct import of LNG to reduce fuel costs · Compliance with emissions trading schemes · Initiatives to reduce fine particulate matter emissions |
||
| Dongducheon DreamPower |
Enhancing energy efficiency in power generation facilities |
||
| Cheongra Energy |
Unused energy recovery businesses |
||
Short Term: 1~3 years, Mid-Long Term: More than 3 years
Response System
the company can be exposed to various risks arising from climate change.
To proactively address climate change risks, GS Energy is utilizing an ESG checklist to identify climate-related risks and opportunities and to establish a response system. In the event of climate change-related risks, GS Energy follows the established risk response system, reports to the management, and integrates this process with the existing framework for management and oversight.
Risk monitoring led by each of the GS Energy ESG Committee working group.
Utilizing the ESG checklist to identify factors that may impact the business (risks and opportunities)
· Monitoring and analyzing relevant database indicators
· Managing risk factors and discussing opportunity factors
Reporting climate change-related risks and opportunity factors to the management, integrated management with existing risk response systems.