DL E&C: Leadership in Climate Change Response

Environmental risks can influence all parts of the business value chain which make it a matter of growing interest. Due to such attention to the environmental performance of companies, disclosure and environmental transparency have become a crucial element in doing business in the 21st century.

Naturally, companies around the world are actively responding to climate change, and DL E&C is no exception as it strives to achieve “sustainable green construction” under the corporate philosophy of “creating a better life and planning boundless growth and development.”

Then, how can the corporate efforts in addressing climate change be measured?

Chapter 1: CDP, measuring corporate progress towards environmental conservation

The CDP, or Carbon Disclosure Project, is a global non-profit organization that runs a global disclosure system regarding environmental issues including climate change, water security, and deforestation. Recognized as a global sustainable evaluation index with the highest reliability, it assesses the activities taken by major companies each year to address climate change and provides the data to global investment firms. As of 2022, more than 18,000 companies are participating in the project and disclosing information on their climate change response. 

CDP scoring is used to incentivize companies to measure and manage environmental impact and understand the trajectory of their environmental journey. Scores from D- to A are given, providing a snapshot of a company’s disclosure and environmental performance with the four consecutive levels representing the steps a company moves through as it progresses towards environmental stewardship; Disclosure (D), Awareness (C), Management (B), and Leadership (A).  

Chapter 2: DL E&C Reaches the Highest Leadership Level 

DL E&C’s efforts in addressing climate change were acknowledged with the highest ‘Leadership A’ level in the ‘2020 CDP Climate Change Report.’

The company was especially acclaimed for its business strategy against climate change, its efforts in managing emission targets, and its risk management. To earn an A score or leadership level from CDP, organizations must demonstrate environment leadership, disclose action on climate change, and execute best practices in strategy and action as aligned with frameworks such as the Taskforce for Climate-Related Financial Disclosures (TCFD). Setting an example for climate change response in the industry, it is no surprise that DL E&C was also the first Korean construction company to join the TCFD in 2021 which was created by the Financial Stability Board to improve and increase reporting of climate related financial information.

As DL E&C continuously makes efforts to address climate change, it was also named an excellent company in carbon management and climate change response by the CDP Korea Committee in February 2023.

Chapter 3: Expanding Ecofriendly Efforts to New Businesses

Taking this experience and its knowhow in carrying out various global plant construction projects, DL E&C is actively developing ecofriendly new businesses. A case in point is its new business leveraging CCUS technology.

CCUS is a decarbonization technology that captures, utilizes, and stores CO2 generated from fossil fuel.

DL E&C commercialized the first carbon capture plant in Korea with engineering capabilities to capture an annual 1 million metric tons of carbon emissions. The company is also concentrating on developing core technology to convert the captured carbon into high value-adding products such as construction material and petrochemicals. In August of last year, DL E&C established ‘CARBONCO,’ a company specializing in CCUS (carbon capture, utilization, and storage), to expand its ecofriendly decarbonization business. The decision was made based on projections that the CCUS market will further grow as power plants, steel companies, petrochemical firms, and cement players, which all burden heavy carbon emission costs, are expected to issue projects for carbon capture and utilization facilities to comply with the decarbonization policies being implemented by governments around the world.

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