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Building a better world together
Reporting Objective
DSME has published Environmental & Social Report
annually since 2005. Our fifth report intends to disclose
information on our sustainability management to
stakeholders transparently where environmental, social and
economic factors are considered in a balanced manner.
Reporting Scope and Period
This Report, in principle, covers the environmental
management and social contribution activities of the head
office and Okpo Shipyard from January 1, 2009 to
December 31, 2009. The activities of our affiliates and joint
ventures are not included.
General Information on This Report
This Report is published both in Korean and in English. You
can download the Report at our homepage
(www.dsme.co.kr). In case you want to receive a copy,
please contact us (see contact information below). Your
valuable feedback will be reflected in our sustainable
management. You can set forth your views through Reader
Survey (see page 57 of this Report), by email, or by phone.
Reporting Guidelines
This Report was prepared based on GRI G3 Guideline and
Ministry of Environment Environmental Report Guideline.
Contact Information
Address: HSE Operation Team, Environmental
Management Group, DSME, Aju-dong 1,
Geoje-si, Gyeongsangnam-do, 656-714, Korea
Tel: +82-55-680-2668
Fax: +82-55-680-2177
E-mail: [email protected]
About This Report
CONTENTS
Sustainability of DSME
Environmental Performance
Social Performance
Appendix
About This Report 00
CEO Message 02
Company Overview 04
Corporate History 05
Organization and Network 06
Major Performances in 2009 08
Corporate Governance 10
Ethical Management 11
Quality Management 12
Stakeholder Communication 13
Economic Performance 14
Vision and Strategy 16
New Growth Engine for Sustainable Growth 18
Environmental Management 22
Activities and Performance 28
Employee Satisfaction 40
Safety and Health 45
Social Contribution 52
Awards and Recognition 55
Environmental Report Guideline 56
DSME2009 Environmental and Social Report
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CEO MESSAGE
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02
03
We will uphold our priority on the environment
regardless of the external circumstances. DSME will continue to
practice environmental management and seek opportunities in
green businesses to propel further advances.
To our stakeholders
October 2009 to pursue the project using carbon dioxide
capture technology. Moreover, we are conducting joint
research to develop “green ships”featuring engines powered
by eco-friendly natural gas. To DSME, protecting the
environment is not just a responsibility but a means of
creating new business opportunities.
We believe environmental management is an inherent part of
fulfilling our social obligations. We are carrying out the “one
company, one coast”protection campaign to preserve the
marine ecosystem of the Geoje region. DSME also strives to
promote environmental management among its business
partners via green partnerships. Consulting is provided so
that our partners can develop policies and activities suited to
their respective firms. We are convinced that efforts to
protect the environment and advance society are essential for
sustainable growth.
With shadows of uncertainty still looming over the global
economy, we may have to endure more tough times ahead.
Nevertheless, we will uphold our priority on the environment
regardless of the external circumstances. DSME will continue
to practice environmental management and seek
opportunities in green businesses to propel further advances.
Our stakeholders play a valuable role in our pursuit of
sustainable growth. I humbly ask for your guidance and
encouragement as DSME pursues its vision of transforming
into a comprehensive heavy industries group by 2020.
CEO, DSME
Nam, Sang Tae
Dear stakeholders,
I am pleased to present Daewoo Shipbuilding and Marine
Engineering’s Environmental and Social Report 2009. This is
the fifth report detailing DSME’s commitment to
environmental management and social contribution.
In 2005, DSME was the first shipbuilding company to publish
an environmental report. Since then, we have communicated
our efforts to preserve the planet and activities to fulfill our
social responsibilities through subsequent reports released
on a yearly basis.
Our eco-friendly activities can be traced back to 1991 when
we created our environmental preservation department,
which was a first for the shipbuilding industry. Then in 1996,
we announced our pledge to realize a green shipyard. The
following year, DSME became the first shipbuilder to acquire
ISO 14001 certification for environmental management.
The HSE Improvement Committee chaired by the Shipyard
General Manager is responsible for setting environmental
goals and reviewing matters related to health, safety and the
environment. Guidelines have been distributed to ensure a
prompt and accurate response in the event of an
environmental accident, and we carry out internal monitoring
to prevent pollution.
In addition to environmental stewardship, DSME is exploring
ways to develop new businesses to promote “low carbon,
green growth”which is receiving the global spotlight. In line
with this stance, we acquired US-based DeWind in August
2009 to expand into the wind power industry. In March 2010,
we signed an agreement to supply wind turbines and
construct a factory with the provincial government of Nova
Scotia, Canada. Another way we are seeking to reduce
greenhouse gases is by building a zero emission power plant.
We concluded an agreement with Sargas AS of Norway in
DSME2009 Environmental and Social Report
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COMPANY OVERVIEWCORPORATE HISTORY
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04
05
Company Name Daewoo Shipbuilding & Marine Engineering Co., Ltd.Starting Date for DSME Okpo Shipyard Construction
October 11, 1973
CEO Nam, Sang Tae
Head Office85, Da-dong, Jung-gu, Seoul Phone 82-2-2129-0114, Fax 82-2-2129-0077~8
Shipyard1, Aju-dong, Geoje-si, Gyeongsangnam-do, Korea Phone 82-55-680-2114 Fax 82-55-681-4030DMHI: Daewoo Mangalia Heavy Industries, In RomaniaDSSC: In ChinaDSEC: In Busan, Korea
Subsidiary WELLIV: In Geoje, KoreaCompanies DSME E&R: In Daejeon, Korea
DSME Construction: In Seoul, KoreaSHINHAN Machinery: In Ulsan, KoreaDEWIND: In USA
Revenue KRW12.4 trillion (plan for 2010)Yard 4 million square metersEmployees 31,000
Commercial Vessel 70 Vessels/YearProduction Capacity Specialty Vessel 10 Vessels/Year
Offshore & Onshore Plant 30~40 UnitsTanker, LNG & LPG carrier, Container
Commercial Vessels carrier, Roll-on roll-off carrier, Chemicalcarrier, Product tanker, Passenger ferry,and others
Major Products Fixed platform, RIG, FPSO/FPU/FSO for Offshore Plant Offshore Oil and Gas Exploration &
ProductionSubmarine, Destroyer, Battle ship,
Specialty Vessels Submarine rescue vessel, AUV, and otherspecialty vessels
DSME has grown into a global shipbuilding and marine company
based on excellent technologies and optimal facilities.
┃General information┃
Company Overview
1970 1980 1990 2000
2001 World No.1 in LNG carrier orders
1989 Business Innovation Movement "Vision 90s"1981 Held ceremony to mark completion
of Okpo Shipyard1973 Groundbreaking ceremony for Okpo Shipyard con-struction by Korea Shipbuilding & Engineering Corp.
Location
2006 Selected for best corporate governance for the 4th year in a row
2005 Received the Korean Best Corporation Awards
2003 Named the world's best shipbuilder from Lloyd's List Maritime Asia
2009 Won US$10 billion Export Tower / Established DeWind Co. (wind power company)
2008 Opened the era of US$10 billion sales
This is our growth path for the past 37 years. Top-tier position in
the world shipbuilding industry has been achieved through our
core values, “passion” and “trust.”
Corporate History
01. Establishment of DSME1973 Groundbreaking ceremony for Okpo Shipyard
construction by Korea Shipbuilding & EngineeringCorp.
1978 Acquired Okpo Shipyard and established DaewooShipbuilding & Heavy Machinery Co., Ltd. (DSHM)
1979 Built first chemical carrier1981 Held ceremony to mark completion of Okpo
Shipyard1983 Completed construction of Dock II
02. Business Innovator Movement1984 Established Ship & Marine Technology Research
Institute and acquired several internationalcertifications
1985 Launched MAST Business Innovation Movementand construction of a double hull 300,000-ton VLCC(world first)
1987 Established of Daewoo Shipbuilding labor union1988 Initiated self-recovery efforts and rationalization
measures for shipbuilding industry1989 Launched business innovation movement, ‘Hope
90s’
03. The World's Best Shipyard1991 Recorded first profit since the establishment1992 Normalized business and acquired ISO 9001
certification1993 Ranked No.1 in amount of orders for ships
Built Korea's first battle submarine1994 Merged with Daewoo Heavy Industries Ltd1997 Acquired environment management certification ISO
14001
04. Under a Workout Program1998 Succeeded in building battleship
Exported passenger ferries for the first time1999 Presidential award for precision technology and One
Hundred Technology Award Workout programme as part of the Daewoo Group'srestructuring move
2000 Spin-off of Daewoo ShipbuildingStarted 'Global Top 2010' Business Innovation Movement to create a new 100-year history
2001 Graduated from the workout programMoved into new company buildingBecame the global leader in winning LNG carrierorders
05. To be the Best2002 Selected corporate core values: 'Trust' and 'Passion'
Commenced the PI project2003 Named the world's best shipbuilder from Lloyd's List
Maritime Asia 2004 Operated PI system for the first time in the
shipbuilding industryOpened Future Leadership Center
2005 Became the world’s first to construct and deliverLNG-RVWon Transparent Management Grand Prize from thefive economic organizationsSelected as the best corporation in the Korea BestCorporation AwardsThe LNG-RV was selected as one of the top 10 newtechnologies by the ministry of Commerce, Industryand Energy
06. Embracing the World2006 Operated DSSC
Received orders over US$ 10 billionSelected for the best corporate governance for the4th year in a row
2007 Received the award for 'Transparent Management'Received the Grand Prize at the '2007 Labor-Management Cooperation Awards'Won US$ 6 billion Export Tower Award at the 44thTrade Day Ceremony
2008 Established Seyoung Educational Foundation(Geoge College) Recorded sales of US$10 billion
2009 Won US$ 10 billion Export Tower Award at 46thTrade Day Ceremony Established DeWind Co.
2010
06
07
DSME2009 Environmental and Social Report
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ORGANIZATION AND NETWORK
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Organization and Network
As of 2010, DSME is composed of one shipyard, four divisions, three units (Corporate Ethics Office
was established in 2009), one research institute, and 34 teams. With a new grand team system that
took, root in the company in 2009, fast decision-making and speed management became possible
through integration of overlapping works, strengthening roles of team leaders, and reduction in
approval steps, thus enabling us to respond easily to the rapidly changing business environment.
Furthermore, we operate an independent quality management team and HSE team in order to
enhance product quality and pursue HSE management in a more effective manner.
DSME secures its global competitive edge through operating
subsidiaries both in Korea and abroad while creating new
business opportunities.
CTO (Technology)
CPO (Production)
GeneralManager ofShipyard
CorporateEthics Office CFO (Finance)
CBO(Business)
CSO(Strategy) Corporate Unit. COO
(Operation)
BODCEO
Audit Committee
HSE OperationTeam
Quality Management Team
Industrial ApplicationR&D Institute
Organizational chart
┃DSME’s subsidiaries┃
DSME operates eight subsidiaries. In 2009, DeWind Co. became a member of DSME.
The subsidiaries are expected to play pivotal roles as we are strengthening the new businesses
such as wind power and energy development.
┃Global network┃
DSME operates 10 branch offices worldwide that are located in Houston, the epicenter of the E&P
business in the US, as well as Athens, etc.
Oslo
London
MangaliaShandong (DSSC)
Seoul (DSC)
Daejeon (DSME E&R)
Ulsan (Shinhan Machinery)
Busan (DSEC Co., Ltd.)
Geoje (Welliv Co., Ltd.)
Houston
●Subsidiary●Branch Office
Tokyo
Shanghai
Perth
Greece
Luanda
Nigeria
Dubai
DeWind
DeWind Corporation
After acquiring the shares of DeWind Turbine,DSME established DeWind Corporation in 2009.The U.S.-based wind power company,specializing in wind power business, runs adevelopment center in Germany while doingdiverse businesses such as wind power plantconstruction, product development and sales inthe US and Europe. Before the acquisition, thecompany was a subsidiary of CTC (CompositeTechnology Corp.), a listed company onNasdaq. The company successfully developed750 kilowatt, 1.5 megawatt and 2 megawattturbines to provide 710 turbines (760 megawatt)in Europe, China, South America, and the US.
08
09
DSME2009 Environmental and Social Report
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MAJOR PERFORMANCES IN 2009
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1. Mobile robotic system for cherry pickerDSME developed a robotic system that carries
out works such as painting, cleaning, pre-
processing, and inspection on the cherry
pickers. The system is expected to enable us
to work in a more safe and efficient manner.
2. First DSME designed drillship modelWe started production of no. 3601, Our first
DSME designed drillship. This drillship can drill
from 10,000 to 40,000 feet underwater. As
such, it will be conducive to securing the
strong drillship market in the coming years.
3. Research center for unmannedunderwater vehicle
The Future Product Business Development
Institute of DSME and Geoje College opened a
research center to to secure an onsite test
base for the UUV (Unmanned Underwater
Vehicle) that is currently under development.
Experts in the area of UUV are expected to be
nurtured while the infrastructure of relevant
industries is anticipated to strengthen,
accordingly.
4. DSME and Korea Gas Corp. (KOGAS)signed an MOU on research anddevelopment related to DME FPSO
Under the terms of the MOU, R&D will be
conducted in collaboration with KOGAS to
develop core technology for topsides of DME
FPSO, regarded as a promising offshore
product in the future. DME is the abbreviation
of dimethyl ether. It is an eco-friendly,
alternative energy source like LPG and diesel.
It is a compound that does not exist in the
natural world but can be made from various
energy sources such as natural gas, coal, and
biomass.
5. World's largest floating dock (RD#4)completed
The world's largest floating dock, DSME Royal
Dock #4 (RD#4) was completed. The dock is
designed to have a floatage capacity of
120,000tons, and measures 438 meters long
and 84 meters wide.
6. Launch of world's largestcontainership (14,000 TEU)
DSME completed and delivered the world's
largest containership of a 14,000 TEU vessel.
Boasting a length of 365.5m, the containership
is 35m longer than a VLCC and 20m longer
MajorPerformances in 2009
1
2
38
than an LNG carrier (260,000㎥). With a width
of 51.2m and depth of 29.9m, it can carry
14,000 containers (each 20 feet) and sail at a
speed of 25 knots (46.3㎞/h).
7. Vessel Monitoring System inoperation, first in the industry
The integrated Vessel Monitoring System
(VMS) was put into operation. This is the first
time this kind of system has been implemented
in the shipbuilding industry, which has been
designed to monitor not only the present status
of major ships in the Okpo bay through GPS,
but also to estimate the arrival time of block
carriers, barges, etc., thus enhancing the
operational efficiency and preventing potential
accidents in advance.
8. Application of the one-time settingmethod for Goliath cranes using aparallel floating crane
900 ton ultra-large Goliath crane was installed
by using a parallel floating crane. We
succeeded in applying the one-time setting
method. This was the first time this has been
attempted in the global shipbuilding industry.
The new method cut down the installation time
to just one week from the two months it took
using the previous method.
9. Construction of the most advancedGBS assembly plant
DSME's new assembly plant, named Grand
Block Shop (GBS), has gone into operation with
an annual production capacity of 130 thousand
tons of large scale blocks for 2010 (150
thousand tons in 2011). The No.5 GBS is the
largest plant in DSME and is equipped with a
360 ton large-sized crane. It is around 61,500㎡in area, where three assembly plants, an
inspection shelter, and an outdoor PE plant are
located.
10. Cost reduction through PSM ActivitiesSetting 2009 as the year for "activating
companywide PSM activities," DSME strived to
reduce costs. As a result, we cut material costs
by KRW228.5 billion in 2009 (accumulated
amount is KRW702.9 billion).
11. Super-large containership anddrilling rig were selected as "2009World Class Product of Korea"
8,000 TEU super-large containership and
drilling rig were chosen as "2009 World Class
Product of Korea." Thus, we hold a total of
seven world class products including
merchant ship (selected in 2001), LNGC (in
2002), and LNG-RV (in 2007).
4 7 9
6 11
5
10
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DSME2009 Environmental and Social Report
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CORPORATE GOVERNANCEETHICAL MANAGEMENT
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Corporate Governance
Transparent management at DSME is carried out by the Board of Directors (BOD) and the Audit
Committee, the top decision-making bodies of the company. The BOD is comprised of eight
members, with half of them being outside directors. DSME discloses audited financial statements
and information on financial performance every quarter.
Category Name Educational background and major career- Yonsei Univ.
Inside director Nam, Sang Tae - Former vice president of DSME- President & CEO of DSME- Sungkyunkwan Univ.
Inside director Kim, You Hun - Head of International Business Division of KDB- Head of Financing Division of DSME- Busan Univ.
Inside director Lee, Young Man - Managing director in charge of hull design- Vice President & CTO
Outside director - Graduate School of Dong-A Univ.Audit Committee Kim, Young - Former CEO of Busan Munwha Broadcasting Corp.member - Professor at Bukyong Univ.Outside director - Hanyang Univ.Audit Committee Jang, Deuk Sang - Executive director of Kabul Developmentmember - CEO of Himchan DevelopmentOutside director -Audit Committee Bae, Gil HoonmemberOutside director - Graduate School of Pennsylvania Univ.Audit Committee Song, Hee Joon - Dean of Dept. of Social Science at Ewha Univ.member - Professor at Ewha Univ.Outside directorAudit Committee Ahn, Se Youngmember -
DSME is implementing transparent management based on
advanced corporate governance.
- Graduate School of Pennsylvania Univ.
- CEO of Korea Delphi
- Seoul National Univ.
- Professor at Sogang Univ.
┃BOD status┃
Ethical Management
Ethical management is essential in building trust between the company and its stakeholders such as
customers, shareholders, employees, business partners, and local communities. As a leading
company in the global shipbuilding industry, DSME carries out ethical management strictly applied to
its employees both in Korea and overseas countries. As a part of these efforts, we conduct a variety
of activities that include employee education, public relations, and operation of monitoring system.
Daewoo Shipbuilding and Marine Engineering strives to provide superior products and services and pursuemutual prosperity with stakeholders with the goal of becoming a respected comprehensive heavy industriesgroup. This Code of Ethics sets forth the company's ethical standards that must be observed by allemployees.
Chapter 1 Emphasis on Customers1. We will do our best to ensure timely delivery of superior products and services that meet customers'
expectations.2. We will protect customers' interests and safety and refrain from unfair conduct against customers.3. We will humbly accept customers' complaints and suggestions and honor our promise to customers.
Chapter 2 Respect for Shareholders1. We will increase corporate value through rational investment and efficient business activities.2. We will respect shareholders' rights and reasonable demands and treat all shareholders with fairness and
equality. 3. We will comply with related laws and accounting standards when handling and reporting financial
information.
Chapter 3 Win-Win Cooperation with Partner Companies1. We will provide equal transaction opportunity to all qualified partner companies and select partner
companies based on fair standards and transparent procedures.2. All transactions will be conducted fairly from a mutually equal footing, and we will refrain from unfairly
granting special favors or causing damage under any circumstances. 3. We will cooperate with partner companies to promote mutual development and clean transactions.
Chapter 4 Contribution to National and Social Development1. We will contribute to development of society and the national economy through sound profit generation
and sustained growth, job creation, faithful payment of taxes, and social contribution.2. We will respect the traditions and cultures of local communities and strive to advance local communities.3. We will strive to protect nature, prevent pollution and conserve resources.
Chapter 5 Mutual Development of the Company and Employees1. We will respect the dignity and values of each employee and will not discriminate against employees based
on regional and academic background, gender, race, religion or physical disability.2. We will provide employees with a clean and safe working environment, encourage creative thinking, and
offer fair opportunities for growth and development. 3. We will conduct fair employee evaluations based on their ability and performance and provide reasonable
compensation.4. Employees will share the company's vision and objective and faithfully carry out their given duties. 5. Employees will abide by the company's policy and regulations and refrain from unjust activities such as
false reporting or misrepresentation that could hurt the company's interests. 6. Employees have an obligation to protect the company's tangible and intangible assets and information and
will refrain from personal use of the assets and information. 7. Employees will treat each other with mutual respect as colleagues and refrain from giving or receiving
money or favors.
DSME carries out and promotes ethical management as a world
class shipbuilding and marine company.
Code of Ethics
Code of Ethics
Audits
AuditsDSME carries out regular and specialaudits of the organization in order toincrease work efficiency and preventwork related risks. ㅡEthics ConsultingAn ethics consulting center has beenset up to provide ethical standards toguide employees in carrying out theirwork and to prevent corruption andwrongdoing.ㅡEthics Monitoring DSME identifies corruption, wrongdoingand various risk factors through ongoingmonitoring activities to expose unethicalconduct and takes steps to remove theunderlying causes. ㅡProclamation of Ethical ManagementOn January 4th, 2010, DSEM held anethical management ceremony whereits executives and employeesparticipated. At the ceremony, thecompany proclaimed its commitment toethical management.ㅡEthics LectureDSME invites outside experts to givespecial lectures in order to raiseemployees' awareness of businessethics and their commitment to ethicalmanagement.
Proclamationof Ethical
Management
EthicsLecture
EthicsConsulting
EthicsMonitoring
DSME2009 Environmental and Social Report
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QUALITY MANAGEMENTSTAKEHOLDER COMMUNICATION
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Quality Management
Quality management systemDSME operates "Total Quality Information Center" to conduct quality management in a systematic
manner. Through the system, real-time quality monitoring as well as daily collection of information
on checkups are executed. In addition, Worker Qualification Management System is contributable
to prevention of quality defects from their resources. In particular, quality management inspectors
are dispatched to each site for perfect quality management to assure the required quality level for
the companies supplying the materials.
Self-quality systemAt DSME, a three-stage autonomous quality system is established. The workers-supervisors-
quality control staff system plays a fundamental role in producing the finest quality products.
Moreover, the job owner system for quality control along with 5,200 highly skilled welders with
international certificates is conducive to producing high quality products.
Quality management promotion activitiesEvery employee at DSME is trained for individual skill and quality control twice a year. Also,
employees from subcontractors are provided with the same level of training as DSME employees.
Quality patrol activities are carried out once a week just before works begin.
┃QA/QC Status┃
NO. Name of Certificate Certification Authority Date1 ISO 9001 QMS Certificate DNV Certification '92.12.15~'10.12.152 Certificate of Welding Germanischer Lloyd '99.02.01~'10.05.313 Nuclear Power Quality Assurance Certificate Korea Electric Association '97.08.27~'11.08.194 Defense Quality System Certificate Defense Agency for Technology & Quality '00.10.25~'12.10.245 KOLAS (Korea Laboratory Accreditation Scheme) Certificate Korean Agency for Technology & Standards '00.12.09~'10.02.146 Certificate of Internationally Certified Testing Institute Korean Agency for Technology & Standards '96.12.28~'10.11.06
As of November 2009
DSME conducts quality management in a systematic manner
through operating Total Quality Information Center and Worker
Qualification Management System.
Practical Mind of Quality Philosophy·Fulfill the promise made to our
customers in advance of their request·Always bear in mind that each person
is responsible for the product andperformance quality of DSME·Strive continuously to improve the
quality of products & services·Always remember that we are
producing the world's best products atthe world's leading shipyard·Complete our assignments correctly at
first time
Quality philosophy
Self-motivation Pride
Trust withCustomers
Quality management system
1. Customer-centered Quality
ManagementSystem
2. Top QualityService
4. Zero DefectProduction
Quality Management System1. Collect customers’ requirements
and perform activities tailored tofulfill their needs, and verify that theprocess/product quality is providingtotal customer satisfaction
2. Provide after-sales services on realtime basis with e-A/S net
3. Foster the best quality specialistsby division and maximize theefficiency of our facilities
4. Enhance monitoring pilot techno-logy by production process stage
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ISO 9001KOLAS
3. Optimizationof Resources
Stakeholder Communication
Enhancing value for customers, employees, shareholders, partner firms and local communities is
the ultimate goal pursued by DSME. Accordingly, we actively communicate with stakeholders to
receive and incorporate their views in our business activities.
Enhancing stakeholder value is the ultimate goal pursued by
DSME.
Communication channel
Shareholders' meeting, IR, Conference•e-Mail/phone consultation, disclosure, etc.•
Shareholder
LocalCommunity Customer
BusinessPartner
Employee
•HSE Forum, IHWT (Integrated HSEWorkshop Team) meeting
•Customer newsletter
•Call center
•Ship A/S websiteSocial volunteer group•
Meeting with partner firm representatives•Seminar for partner firm CEOs•
Global Top Cooperation•Workshop for partners, etc.
•Management Consultative Committee,Labor-Management Committee
•Portal Community (Open Space)
•Ethical counseling center
Shareholders' meeting (1 time), IR and Non-Deal Roadshow (5 times), Participation in Shareholder conferences in Korea and overseas countries (7 times), Meeting with domestic institutional
investors (296 times), Annual Report and Factbook, conference calls, etc.Handling customer complaints, Operation of ship after service website
Customer (http://as.dsme.co.kr/jsp/intro.jsp), HSE workshop (12 times), HSE Plaza, Publication Okpo Gazette
EmployeeManagement Consultative Committee, Labor-Management Committee, Industrial Safety and Health Committee, Operation of ethical counseling center, Cyber hotline, etc.Industrial Safety and Health Committee of partners, Pep rally for partner firms and ship
Business owners, Green partnership, Labor-management walk together event, Operated academy forPartner housewives of employees at partner companies, Held conference and seminar for partners,
Established cooperation system for partnersLocal
Operation of Geoje College, Supporting cultural programs, etc.Community
Major activities in 2009
Client HSE Forum
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DSME2009 Environmental and Social Report
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ECONOMIC PERFORMANCE
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Economic Performance
2009 2008
Ⅰ. Current assets 9,019,958 9,382,402 Ⅱ. Non-current assets 6,116,400 6,571,152
Total assets 15,136,358 15,953,554 Ⅰ. Current liabilities 9,392,880 9,866,698 Ⅱ. Non-current liabilities 2,485,899 4,018,989
Total liabilities 11,878,779 13,885,687 Ⅰ. Paid-in capital 961,954 961,954 Ⅱ. Capital surplus 200 200 Ⅲ. Capital adjustments (31,643) (30,843) Ⅳ. Accumulated other comprehensive income 865,684 20,328 Ⅴ. Retained earnings 1,461,384 1,116,228
Total shareholders' equity 3,257,579 2,067,867 Total liabilities and shareholders' equity 15,136,358 15,953,554
┃Summary balance sheet┃(unit: KRW million)
2009 2008I. Sales 12,442,519 11,074,644 II. Cost of sales 11,463,815 9,749,867 Ⅲ. Gross profit 978,704 1,324,777 Ⅳ. SG&A expenses (294,181) (293,226)Ⅴ. Operating income 684,523 1,031,551 Ⅵ. Non-operating income 1,877,344 1,859,230 Ⅶ. Non-operating expenses 1,793,814 2,311,096 Ⅷ. Income before income taxes 768,053 579,685 Ⅸ. Income taxes 190,549 177,957 Ⅹ. Net income 577,504 401,728
┃Summary income statement┃(unit: KRW million)
DSME recorded its best ever financial performances for two
consecutive years.
┃Summary financial statements┃
16,000
12,000
8,000
4,000
0
2007
8,28
7
2008
15,9
54
2009
15,1
36
Total assets(unit: KRW billion)
600
450
300
150
0
2007
2008
402
2009
578
Net income(unit: KRW billion)
322
2009 2008Current ratio 96.03% 95.09%Debt-to-equity ratio 364.65% 671.50%Total borrowings to total assets 13.88% 1.87%Interest expenses to operating income 1,038.81% 7,041.07%
┃Stability┃
┃Key financial ratios┃
2009 2008Operating income margin 5.50% 9.31%Net income margin 4.64% 3.63%ROA 3.72% 3.31%ROE 21.69% 20.93%
┃Profitability┃
2009 2008Sales growth 12.35% 55.88%Operating income growth -33.64% 236.25%Net income growth 43.75% 24.68%Total assets growth -5.12% 92.51%
┃Growth┃
100
50
0
2007
95.4
4
2008
95.0
9
2009
96.0
3
Current ratio(unit : %)
60
30
0
2007
31.5
5
2008
55.8
8
2009
Sales growth(unit : %)
12.3
5
16
17
DSME2009 Environmental and Social Report
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VISION AND STRATEGY
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Vision and Strategy
DSME does its utmost to generate annual sales of KRW20 trillion
by 2015 and transform into a comprehensive heavy industry group.
┃Vision┃
DSME does its utmost to grow into the world's No.1 shipbuilding, marine engineering and general
company, by achieving sales of KRW20 trillion in 2015 through innovative leadership based on
"trust" and "passion." In a bid to achieve the company vision, we established F1 strategy.
No.1 Shipbuilder Sales of 12 trillion won
•Maximization of Okposhipyard compatibillity•Be the first mover in Chinese
shipbuilding market
No.1 Floater Supplier Sales of 3~4 trillion won
•Standardization of FPSO•Vertical integration of
engineering field•Entry into local markets•Entry into new business area
New business in alliedindustries
Sales of 4~5 trillion won
•M&A•Stepping stone-way
development based on coreabilities
Global network operatingcompetency
DSME's unique way forpervasive innovation
Innovative leadership based on"Trust and Passion"
•Entry into China (Completed)
•Establishment of new offshore plantmodel
•Development of new business
•Development of pervasive innovationmodel (Completed)
•PSM (Procurement & SupplierManagement) innovation
•Optimization of Product mix inshipbuilding area (Completed)
•Risk management (Completed)
•PI (Process Innovation)
8 Strategic Objectives forVision Achievement
DSME's future after vision achievement
SHIPBUILDING
OtherGlobal
Network
China
Okpo
OFFSHORE PLANT NEW BUSINESS
SHIPBUILDING OFFSHORE PLANT NEW BUSINESS AREA
•Concentration on LNG carriers•Specialty ships•Development of high added-
value ships
•New shipyard•Construction of blocks and
other components•Supplier network•Repair od older ships
•DMHI (Rumania)•Local market (N. and S.
America)•Shipyard for repair &
refurbishing (Middle Asia,Southeast Asia)
•Overall solution for FPSO
•Standading of FPSO•Vertical integration of
engineering•Entry into local markets•Entry into new business
•Vertical imtegration
•Energy and logistics industries•Vertical integration•Ship lease /
Financing business
The World's No.1 Shipbuilding, MarineEngineering and General Company
2010 - 2012 2013 - 2015 2020 vision
Period for jumping toward theglobal best
·Establishing foundation for jump-up ·Making inroads into new
businesses (modular plant, F-LNG,wind power business, etc.)·Establishing corporate culture of
passion and autonomy
Period for entering into top-tierlevel by business
·Global top in the shipbuilding andoffshore industry·Entering into top class in plant and
new & renewable energy·Optimizing business portfolio
Becoming world leading heavyindustries group
·World's top position by business(shipbuilding, offshore, plant, newand renewable energy) ·Developing new growth engine
continuously
F1 strategy
Management policy in 2010
•Secure experts
•Stabilize new business earlier
•Complete future business structure
Developingfuture growth
engines
Enhancingcompetiti-
veness
Breaking out shell
•Nurture creative andchallenging talents
•Continue systematicinnovation activities
•Stabilize labor-management relations
•Establish fun-filled worksite
Receive orders as early as •possible
Secure liquidity•Reduce total costs by 10%•
(OK Movement)
Develop market-leading•products
18
19
DSME2009 Environmental and Social Report
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NEW GROWTH ENGINE FOR SUSTAINABLE GROWTH
+
New Growth Engine for Sustainable Growth
DSME is focusing on discovering new growth opportunities such
as wind power business and green business.
Wind Power Business
DSME has acquired shares of DeWind Inc., a subsidiary of U.S.-
based CTC (Composite Technology Corp.). Following its
acquisition of DeWind for $50 million, the company plans to
make an investment of $70 million to develop a new model.
Furthermore, DSME will build a production plant in North
America. The company's blue print of the new business calls for
creating a wind power station with 20 units of 2 megawatt
turbines in Texas in the short term and expanding it into a huge
wind power station composed of 420 turbines. Starting from
North America, the company plans to become the tenth largest
company by 2015 and third by 2020 through securing 15 percent
of the global market by 2020.
E&P Project
DSME entered various E&P (Exploration & Production) fields by
partly acquiring shares of Zambyl mining lot in Kazakhstan,
participating in Indonesian oil field CEPU project and producing
crude oil, establishing a Singaporean crude oil trading subsidiary,
and taking over the biggest gold mine in Korea (representing
93% of total production). Especially, starting from this year,
DSME will participate in hydrothermal sulfide minerals (area:
20,000㎦, about 10 times the size of Jeju Island) exploration work
in Tonga, in the South Pacific, together with Korean government
and other domestic companies and will start commercial
development after 2012 once evaluation of reserves and
economical efficiency is determined.
Business Opportunity in Russia
DSME signed a memorandum of agreement (MOA) with Russia's
United Shipbuilding Corporation (USC), and currently participates
in construction of Zvezda Shipyard in Vladivostok. With the
agreement, DSME and USC will jointly participate in shipbuilding
and offshore plant construction along with oil & gas exploration
and production projects.
Oman Project
After signing MOU contract with Oman government for building a
new city in Oman, DSME is pushing ahead the plan to build a
residential complex as its first project. The detailed projects for
building a new city consist of building ship repair yards, petro-
chemical facilities, harbors, airports, power plants and these
projects are in progress. The establishment of tourist, residential
and industrial complex is scheduled to follow.
Environment-Friendly Project
DSME signed the contract with Sargas AS of Norway for power
plant facility technology development without discharging carbon
dioxide, and agreed to proceed to the basic design for thermal
power plant facilities, product commercialization and marketing.
Through the cooperation, DSME plans to develop floating or
modulized thermal power plant facilities.
Development of New Products and Technologies
Next Generation Ship and Marine Structure DSME
aims to complete LNG-FPSO (Floating Production Storage and
Offloading) within the first half of 2010. It is a new concept marine
plant with various functions including production, liquefaction,
storage and loading of natural gas. In terms of time and cost, it is
very effective compared to existing methods which produce
natural gas in the sea, liquefy and store natural gas on the land
before loading it on LNG ships. Furthermore, DSME will complete
development of LNG-FSRU (Floating Storage & Regasification
Unit) by 2010, which is a floating offshore LNG terminal. DSME
has the most patents in this field, and we have signed a research
and development contract for conceptual designs of LNG FSRU
with BOE, a subsidiary of Exxon Mobil in March 2010.
High Value-Added Ships In December 2009, DSME
completed technology development of high value-added ships
such as oil tankers for polar region sailing and drill ships, and the
technological marketing for ship owners is ongoing. In December
2009, we established the whole process of manufacturing cruise
ships from designing to building according to strategies by
stages since 2008. We are realizing high value-added ship
business in full scale by obtaining order for two large car ferries in
June 2009.
Localization of LNG Ship Cargo Storage The
development of LNG ship local cargo storage will be completed
by December 2010 as a part of the national project supported by
Korean government. It is the representative localized technology
for equipment and materials. If the technology can be verified at
early stage, we can reduce the huge amount of royalty paid to
GTT of France which has an exclusive patent in cargo storage
technology. Furthermore, our competitiveness in the LNG ship
market is expected to be strengthened.
Building...Planet full of vitality
We think of a planet full of vitality. We hope for a world where everything is
vividly alive. DSME does not limit itself to building ships. Green shipbuilding
is our promise to create such a planet. This sector holds DSME’s efforts to
leave a clean environment to our next generation.
DSME2009 Environmental and Social Report
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ENVIRONMENTAL MANAGEMENT
+
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23
Environmental Management
DSME is moving towards its vision of becoming an 'eco-friendly
shipbuilder' by building an advanced environmental manage-
ment system.
┃Environment policy┃
We have established an environmental policy to guide us in our ongoing efforts to help protect
natural surroundings and minimize pollution. It enables us to enhance productivity and secure a
healthy and convenient environment.
┃Goals and strategy┃
DSME is moving towards its vision of becoming an 'eco-friendly shipbuilder' by building an advanced
environmental management system. As a part of these efforts, we have established a master plan by
phase since 1991 and carried out relevant activities. Under the targets of becoming a global
environment-friendly leader by 2014, we have mapped out plans that focus on a response to climate
change, design and building of eco-friendly ships, and establishment of a resource recycling system.
Adhere to environmental regulations and minimizedischarge of pollutants•Continue to develop environmental technology to
reduce consumption of raw materials and energy
Encourage employees to follow 'green principles'•Educate employees on environmental principles
and encourage them to adopt 'green' practices
Take precautions against environmental accidents•Maximize efficiency of environmental management
by curbing and checking the creation of pollutantsin all operation processes
Continue the 3R movement•Help protect the environment by following the 3R
practices of Reduce, Reuse and Recycle
Disclose environment information•Regularly disclose environment information to
ensure transparency of environment policyimplementation
Environment policy
Phase 1_Adoption of anenvironmental managementculture•Establishment of an environmental
team•Declaration to become an 'eco-friendly
shipbuilder'•Acquisition of ISO 14001 certification•Declaration of environmental
management•Establishment of the DSME
Environment Award•Elimination of environmental accidents•Adherence to environmental
regulations and expandingenvironment-related investments
Phase 2_Optimization of environmental management•Minimizing pollutant discharge·Increasing reuse of gray-water·Decreasing volume of waste paints
and wastes generated·Decreasing dust·Decreasing volume of toxic material
used•Expanding waste recycling·Increase in separate collection·Improvement of waste disposal
method·Recycling residual materials·Environmentally friendly design and
purchasing activities
Phase 3_Realization of anenvironment-friendly DSME•Open environmental facilities•Increase the number of projects
which support local residents /environmental groups•Form local 'green' areas
Phase 4_Becoming a global environment friendly leader •Execution of climate change response strategy·Reducing greenhouse gas emissions·Establishing new and renewable energy business•Design and building of eco-friendly ships•Establishment of advanced resource recycling system
1991~2006
2006~2009
2009~2011
2011~2015
Environmental goals and action plans
┃Environment management system┃
DSME has established an environmental management system (ISO 14001) for continued
improvement of our environmental performance. In order to carry out our environment policy, we
set up company-wide goals and particular targets for each team. In addition, our environment
management system is evaluated on a quarterly basis by an internal HSE (Health, Safety, and
Environment) review and the results are reported to the head of each business site to improve the
system.
┃Environmental organization┃
The HSE Improvement Committee deliberates on environmental issues both in Korea and
overseas countries in addition to matters on environment improvement and reports to top
management. The committee sets environmental targets and is responsible for conducting
reviews and making decisions on matters pertaining to the environment, safety and health. The
Environment group draws up action plans and oversees execution of the plans across all of our
operations. The team deploys personnel to each of our business sites with the mandate to help
prevent environmental accidents and ensure eco-friendly work processes, thus building a green
worksite.
Environmental organization
HSE Operation Team
EnvironmentalManagement Group
GeneralManager ofShipyard
•Review company-wideenviromental policy andmeasures·Eastblish company-wide
enviromental goals andplans for preventivemeasures·Manage environmental
performance index•Review and study
environmental effects•Enviromental PR/Training &
Evaluation•Check/improve onsite
enviromental incongruties•Environment-related civic
appeals/authorities/NGOs•UNFCCC·Establish GHG inventory·Develop reduction program
•Authorize air/waterenvironmental facilities/newinvestments/review/improvement/pollution measurementresults management•Operate wastewater/sewage
water treatment facilities•Authorize marine enviroment
facilities/improve/resultsmanagement•Operate 'eco-friendly vessels'
(marine pollution preventionand production support)•Manage toxic/soil pollution
causing facilities/review/improve/results management
•Establish and execute wastetreatment plan•Waste disposal/account
settlement/resultsmanagement•Waste collection and facility
management•3R promotion·Reduce·Reuse·Recycle•Conduct and evaluate waste
separation•Operate waste material
recycling center
Environmental Management Air/Water/Marine Management Waste Resource Management
DSME2009 Environmental and Social Report
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ENVIRONMENTAL MANAGEMENT
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25
┃Operational system chart┃
Report ofincongruities
Discovery of failure/preventive measures
Filing/reporting
Confirmation inquiry
Establishamendment plan
Report-ing
Notify inquiry
Notify inquiry results
Follow-upmanagement
① Report form for safety, environmental incongruities
② Safety and environment information filing and ledger
③ HSE Improvement form
④ Daily HSE information
⑤ Results notification
*Safety environment information treatment process (DSM-S-308)
①
②
③④
④⑤
1. Apply 5W1H, file and report
•Safety accidents/incidents•Environmental pollution incidents (air, water, waste,
soil, marine pollution, etc.)•Safety, health and environment regulation violations
2. Manage records of phone, written notifications
3. Distinguish relevance of filed information
4. Establish/report correction plans (consider
eliminating actual/potential failure incongruities)
•Urgency•Efficiency of process
•Regulations•Interest level of related persons•Other internal/external factors
5. Notify results of action taken immediately or after
planning
6. Monitor progress of amendment measures, report
and confirm completion
7. File entry into safety, environment information
ledger
Management points
┃Environmental monitoring ┃
To effectively respond to various environmental accidents, DSME has a response system which is
shown below in the operational system chart. Reported incidents are treated with an accurate and
efficient 7-step process. This enables us to deal with the situation in the most appropriate manner
for maximum efficiency. In the case of a minor accident, steps are taken immediately at the site.
An improvement request form is then filed for future reference. When a more serious incident
occurs, the incident is reported directly to the head of shipyard. This is then followed up by joint
efforts to contain the incident.
Report of results
Correction /Improvement
Regular/ordinary monitoring
Confirm inquiry results
HSE OperationTeam
Company-wide Improvement, Safety environment Management Related standards and formsexecution division management division representive
Category Amount Cost category Sub-category Amount Details Amount
┃Breakdown of environmental costs┃
┃Environmental accounting┃
DSME has established an environmental management system (ISO 14001) for continued
improvement of our environmental performance. In order to carry out our environment policy, we
set up company-wide goals and particular target by each team. In addition, our environment
management system is evaluated on a quarterly basis by an internal HSE (Health, Safety, and
Environment) review and the results are reported to the head of each business site to improve the
system.
1. Environment management system activity costs (auditor/personnel costs of support team) 481,935
2. Education costs (internal/external training related to environment) 176,515
3. Energy/resources saving costs (reduction/recycling costs) 8,100
4. R&D activity costs (manufacturing/product improvement costs) 0
5. Global environment conservation costs (greenhouse effect/ozone depletion, etc.) 0
6. Worksite ‘greening’ costs 890,000
1. Environment improving investments 17,538,000
2. Prevention facilities operation costs (depreciation/repairs and maintenance/
renovations/personnel/electricity costs)4,986,854
3. Pollutant discharge measurement costs (in-house/ commissioned/ automatic measurements) 399,360
4. Pollutant discharge cleanup costs (disposal/management costs to commissioned firm) 6,544,144
1. Pollution prevention/restoration costs 68,400
2. Environment taxes 24,681
3. Fines and penalties 1,764
1. Environmental report/Annual report publishing costs 55,000
2. Social contribution activity costs
•Stakeholder cooperation costs
•Environment conservation costs (charity/environment volunteer work) 919,961
•Regional cooperation costs
3. Social forestation costs 0
1. Reduced costs due to preventive activities
•Reduced costs from less waste paint553,792
•Reduced water costs from reusing heavy water
2. Benefits from recycling
•Scrap iron/metal/wasteship/slug/recycled resin/wastepaper sales3,696,325
※excluding sales from scrap iron
Environmentalcosts(cost
reductionsminus
expenditures)
Environmentalexpenditures
32,094,714
Cost reduction
4,250,117
Pollutionprevention
costs
Pollutioncleanup costs
Social costs
Costreductions
due toenvironmental
activities
-27,844,597
(unit: KRW thousand)
(unit: KRW thousand/year)Environmental investment
Wastemanagement
MarineenvironmentWater qualityAir quality
60,0001,762,00079,00015,637,000
1) Construction/improvement of
painting plants
2) Construction/improvement of
pre-processing plants
15,607,000
3) Purchasing electric sprays
30,000
1) Improvement of sewage
water treatment facility
79,000
1) New waste material
recycling center
1,525,000
2) Recycling bins
237,000
1) Improving engine function of
environmental vessels
60,000
Environment risk
managementcosts
1,556,550
29,468,358
94,845
974,961
4,250,117
DSME2009 Environmental and Social Report
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ENVIRONMENTAL MANAGEMENT
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27
┃Environmental performance┃
We have analyzed the components of the environmental indicators set forth under the GRI Guidelines and
ISO 14001 and selected indicators that are appropriate for DSME from 2006. For each indicator we
employ, we have set the standards for measurement and weightings in order to quantify our environmental
performance. Each worksite has in place an evaluation system that is best suited for the setting.
EnvironmentalManagement Index (100)
ManagementPerformance Index
(MPI) (50)
OperationalPerformance Index
(OPI) (40)
EnvironmentalPerformance Index
EPI (10)
Environmentalstandard conformity
index (5)
Environmentalaccounting index (5)
Environmentalactivities index (15)
Stakeholder index (5)
Waste dischargeindex (15)
Air/water pollutantemission index (15)
Water quality index (3)
Soil quality index (3)
Hazardous substanceutilization index (4)
PerformanceSub-category Evaluation item Standard
index
┃Environmental performance index guideline┃
1. Suitability of EMS plan 3.0 3.0 2.5 2.42. Execution rate/schedule 6.0 6.0 5.5 6.03. Satisfactory level of execution 6.0 7.2 5.0 6.04. Regular management 5.0 7.0 6.0 5.01. Regulation violations 3.0 3.6 4.2 4.82. Fines 2.0 2.4 2.8 3.21. Environmental expenditures 3.0 1.5 0.0 2.02. Environmental benefits 2.0 0.8 0.0 0.01. Requests to improve environmental
incongruities 10.0 20.0 20.0 18.02. Environmental cleanup activities 5.0 5.0 3.0 4.01. Information sharing with residents
(onsite visitors) 1.5 2.7 2.4 1.22. Frequency of contact with stakeholders
(environment-related) 1.5 2.5 1.9 3.1
3. Environment-related civic appeals 2.0 2.0 1.2 2.01. Major raw ·Steel 1.5 2.4 2.4 2.7
material use ·Paint 1.5 0.6 2.4 2.42. Water use 1.5 1.8 2.7 2.73. Energy use 1.5 2.1 2.7 3.01. Hazardous chemical use 4.0 0.0 8.0 8.01. Waste generation volume (basic unit) 4.0 8.0 8.0 8.02. Waste recycling rate 4.0 6.4 6.4 5.63. Wastewater recycling rate 4.0 8.0 8.0 0.04. Waste separation efficacy rate 3.0 4.2 4.8 5.41. Emission of air ·Total dust emission 3.0 0.6 1.8 4.2
pollutants ·Total SOx emission 3.0 5.4 5.4 4.22. Emission of ·COD 3.0 0.0 0.0 0.0
water pollutants·BOD 3.0 1.8 0.0 0.0·SS 3.0 6.0 0.0 1.8
1. Analysis of air ·PM10 1.5 1.2 1.5 1.8quality around ·SOx 1.0 2.0 2.0 1.8company ·Ozone 1.5 0.3 1.8 0.0
1. Analysis of ·COD 1.5 3.0 0.0 2.7water quality ·DO 1.5 1.8 0.6 0.9around company
1. Results of ·BTEX 1.5 1.5 3.0 3.0company soil ·TPH 1.5 0.0 0.0 0.0quality
Total 100 120.8 116.0 115.9
Environmentalmanagement systemoperation index (20)
Resourceutilization index (6)
Air quality index (4)
2007Evaluation
index
2008Evaluation
index
2009Evaluation
index
┃Environmental education ┃
1) Classroom education about the environment the new recruits
DSME offers classroom education on the environment to new employees working in offices and
production lines as well as subcontractors in order to realize an environment-friendly workplace.
Based on domestic and international environment trends, inappropriate environmental cases and
internal environmental standards, participants receive education regarding work instructions,
installation of environmental facilities and 3R (Reduce, Reuse, Recycle). Meanwhile, DSME
continuously educates its staff about environment through environment information magazines
and weekly education materials, thus enhancing employees' understanding on environment
management in general and establishing an environment-friendly workplace.
2) Environment common sense note
On our website, we have posted environment common sense and stories on prevention of
pollution incidents inside the worksites.
3) Improving monthly environmental campaign broadcast
We compose broadcasting announcement with 'green start song' that is related to our monthly
environmental subject to incite employees' interests in environmental matters. Employees at
DSME join the broadcasting.
┃Environment database ┃
In order to integrate and enhance the environment-related works, DSME has built and operated a
database which is linked to various facilities for wastewater treatment, air pollution prevention and
waste management. It enables real time monitoring, statistics compilation and analysis.Environmental newsletter
Environment database
Environmentdatabase
Environmental education for newly hired employees
Airpollution
Toxic substance
Sewage water
Waste
Wastewater
Soil contami-nation
Achieving GHG reductiontarget and introducingverification system ·Achieving mandatory
reduction (Selecting energysaving/efficiency maximi-zation tasks by process)·Pursuing climate change
related CDM business(securing emissions right)·Study on climate change
related business such asCDM ·Participation in the
emission trading scheme
Setting up GHGreduction program andtarget ·Building GHG inventory ·Developing GHG
management system(management byworksite and process)·Establishing GHG
reduction tasks
Establishing basefor management of
GHG emissions
Reducing GHG emissions /Conducting tasksto respond to theclimate change
convention
Respondingto the mandatoryreduction period
DSME2009 Environmental and Social Report
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29
Activities and Performance
DSME takes initiatives in preserving the earth through its all-out
efforts to reduce environmental impacts, and waste manage-
ment and recycling.
┃Response to climate change ┃
Establishing a three-phase master plan in preparation for the United Nations Framework
Convention on Climate Change (UNFCCC), DSME carries out relevant activities to cope with
global warming, which is one of the most important issues facing the world.
┃GHG inventory establishment and verification ┃
DSME calculated GHG emissions based on ISO14064, the IPCC Guideline, and the WRI GHG
Protocol. Through the verification by the third party, it enhanced the credibility of the results.
Master plan for responding to UNFCCC
Boundaries Okpo shipyard at DSME (excluding Seoul office and subsidiaries) Period Year of 2008 and 2009
GHG categorySix greenhouse gases defined by the Kyoto Protocol (CO2, CH4, N2O, HFCs, PFCs, SF6)
Verification KSA (Korean Standards Association)
institution
┃GHG inventory establishment and verification┃
Establishing base formanagement of GHGemissions ·Organizing response
team in the shipbuildingindustry ·Promoting for enhancing
awareness ·Calculating GHG gas
emissions (generaldocument form)
Phase I (2009) Phase II (2010~2012) Phase III (2013~)
GHG inventory establishment certification
GHG inventorycalculation report
┃Cases on climate change countermeasure ┃
DSME premiered its first hybrid vessel, No. 2258, in June 2009, the vessel drastically
reduces emissions of toxic gases. The 2258 (BS GAS 162,400 m³) is an electric hybrid vessel
that gains its power not from the main engine but from a motor. Electrically-propelled ships
which match with the environment-friendly trend came to the world shipbuilding market.
This vessel is different from other LNG ships in many aspects. First of all, two motors are the
main sources of power while the dual fuel engine that uses both oil and gas discharged from
the LNG cargo is built on the generator that produces electricity for the motor. Therefore, this
ship can greatly increase economic efficiency and minimize discharge of harmful gas.
Furthermore, two propellers have excellent propulsive and control performance. In 1998, DSME
started research on electricity-propelled ships. In 2005, we successfully received the first order
from Norwegian ship owners who have strict environmental standard. Currently, we are building
ten ships.
Environment-friendly hybrid vessel
Amidst the stricter international regulations on pollutant emissions from ships, we have
initiated the development of a groundbreaking environmentally friendly vessel
propelling system. The vessel propelling system under development with MAN Diesel, a
Danish engine manufacturing company, consists of a ME-GI (gas injection method)
engine and high-pressure gas supply system.
This engine greately reduce environmental impacts by getting its drive through the use of
high-pressure natural gas in addition to the diesel that common vessels use. The engine
reduces emissions of carbon dioxide (CO2), nitrogen oxide (NOx), and sulfur oxide (SOx)
by 23%, 13%, and 92%, respectively in comparison with other diesel engines with the
same power capacity. Also, when applying this propelling system to a 14,000TEU
container vessel, it reduces approximately US$ 12 million/yr of fuel cost.
Moreover, we hold ten patents regarding the high-pressure gas supply system and its influence
will continue to grow because this system is applicable not only to the shipping industry but also
other industries.
Environmentally friendly vessel propelling system
2009 2008GHG emission volume 426,000tonCO2eq/yr 365,000tonCO2eq/yr
┃GHG emission volume┃
Stationary combustion
Mobile combustion
Process
Leak
Electricity purchased
(unit : %)
In 2008
6.25.4
43.1
53.247.2
35.6
3.7 4.4
In 2009
0.60.6
DSME2009 Environmental and Social Report
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Dust collector of newly built GPS pre-process plant
┃Air quality ┃
DSME provides a clean and pleasant environment to the residents around the worksites as well as
workers in the worksite. We have monitored and analyzed the environmental changes and
prepared for proper plans to quickly respond to the potential environmental impacts around the
worksites since 2005. According to the measurement results of air quality in 2009, all items
including PM10, CO, and SOx satisfied the legal requirements.
DSME Anjeong National
DSME OkpoDSME Okpo
ShipyardShipyard Industrial
ComplexNumber of outlets 92 14
Filtering dust collectors
Bag Filter 60 14
Absorbers A/C Tower 6Absorbers Scrubber 6
Pollution Centrifugal power Cyclone 4prevention Weight Preduster 5facilities Oxidation RTO 2
Other boiler related environmental 9
facilitiesTotal 92
┃Outlet status┃
100
75
50
25
0
Lega
lst
anda
rd10
0
PM
1036
0.12
0.09
0.06
0.03
0
Lega
lst
anda
rd0.
06
NO
x0.
014
0.12
0.09
0.06
0.03
0
Lega
lst
anda
rd0.
06
O3
0.03
2
10
8
6
4
2
0
Lega
lst
anda
rd9
CO
1.07
0.12
0.09
0.06
0.03
0
Lega
lst
anda
rd0.
05
SO
x0.
006
Air quality around the worksites
(unit: ㎎/㎥) (unit: ppm)
(unit: ppm) (unit: ppm)
(unit: ppm)
Voluntary Agreement on VOC reduction
Application of environment-friendly paints
Emission of VOCs in 2009 was 4,935 tons/year, a 35.5% decrease from 2006.
Overview Agreement between government and 9 shipbuilding companies (Nov. 2007)
Content VOC (Volatile Organic Compound) reduction of 30% compared to that of 2006
until 2011 (DSME 30.3%)
Total investment KRW 62.6 billion (9 shipbuilding companies: KRW 360.5 billion)for 5 years
Major execution items Installment of high-efficiency dust collecting devices on pre-process plants
(completed in 2008)
Conversion of painting site to indoors: Installment of large painting shelters
(6 shelters in 5 years)
Development of silicon paint and soluble paint
Reduction of paint use by reducing waste paint
Improvement of painting skills by developing painting equipment
Application of environment-friendly paints
We seek to reduce lead time, decrease amount of paint, and build a safe working
Background environment by standardizing the use of water-soluble paint and applying it to theengine rooms and deckhouses of all vessels.
ApplicationWe have applied the new paint co-developed by DSME and IPK to the engine roomand residence areas of No. 1187 (Korea Lines 180,000DWT bulk carrier).
·We have contributed to the safety and health of workers and ship-owners by applyingwater-soluble paint which is free from toxic gas and potential explosion risk to theengine room and residence areas where people are most active during constructionand sailing.
Effect·We increase productivity by eliminating the need for primers (basic painting) when
applying the new paint.
·It will reduce dust (powder coated) during coating process compared to other existingpaints.
·Reflecting the painting in the contracts for new vessels
Future plans ·Applying the standard to all vessels
·Solving painting problems for improvement
8,0006,0004,0002,000
0
2006 2007 2008 2009 2010 2011
7,65
6
7,65
6
6,22
7
7,48
8
6,02
2
5,38
5
5,79
7
4,93
5
5,58
5
5,33
4
Reduction plan(unit: ton/year)
Plan
VOC emission
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┃Water quality ┃
Sewage water treatment
Sewage water of the company is collected at the sewage water treatment facility. 17% of sewage
water is reused as graywater. Sewage water totaled 1,085,943 tons and 181,779 tons were reused
in 2009.
•Activities to improve sewage water In 2009, DSME put microorganisms into the water collector for waste water treatment to improve
the water quality. By removing stuck oil, fats and bad smell, it could increase water concentration
efficiency while improving the ventilators.
1,200
900
600
300
0
2007
977
261
2008
1,19
7
2009
1,08
6
Sewage water treatment status(unit: 1,000 tons)
Sewage water treatment system
Sewage watertreatment facillity
•Procedure of graywater reuse
Toilet Canteen Showers
Filter Dischargesump
Reuse Discharge17% 83%
Pumping Pit
Reaction tank Micro filter Filtersd watertransfer tube
Reusedwater tank
Used inballastingand waterpressure
test
▶ ▶ ▶ ▶
Facility for microorganisms Improvement of ventilations
277
182
Volume of sewage water treatment
Reused volume
Discharge
Wastewater treatment
Wastewater generated from the shipbuilding process is discharged after being treated through
physical and chemical treatment methods at the heavy machinery facility and the laundry facility. In
2009, the amount of wastewater generated totaled 20,289 tons, 20% lower than that in the
previous year.
40
30
20
10
0
2007
39.7
2008
25.3
2009
20.3
Wastewater treatment status(unit: 1,000 tons)
Flow chart of wastewater treatment
Flowadjustment
sump
▶ ▶ ▶ ▶
Neutralization,reaction,
integration,condensation
Depositionfacillity
Filtrationsump
Filtration tank
•Improving wastewater treatmentWe improved the quality of discharged water by adding chemicals like n-H decomposers and
activated carbon power into the laundry wastewater treatment facilities. Moreover, we reduced
wastewater discharge from 67 tons/ day to 47 tons/day by replacing old laundry machines.
Old laundry machine New laundry machine
Water inflow
20
15
10
5
0
BO
D20
5.8
5.6
20SS
Water quality (density)(unit: ppm)
▶Sewage water treatmentfacility
100
75
50
25
0
CO
D90
25.5
12.7
80SS
▶Heavy machinerywastewater treatmentfacility
100
75
50
25
0
CO
D90
18.2
9.2
80SS
▶Laundry wastewatertreatment facility
Legal standard
DSME
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┃Marine environment ┃
Performance
•Holding campaigns to prevent marine pollutionIn 2009, DSME held campaigns to prevent marine pollution for
ships that enter and exit from the port. Through this campaign,
DSME promoted its Marine Environmental Management
Standards and the measures against marine pollution.
Furthermore, we made and distributed stickers which
contained information on the telephone number and reporting
instructions so that people can urgently report and take
necessary measures against marine pollution.
•Education on marine preservation In 2009, we conducted learning courses on Marine Pollution Prevention
Law and marine pollution cases for internal tugboat captains and chief
engineers, and pasted 'DSME Marine Environment Compliance Obligations'
on ships.
┃Waste management ┃
Marine pollution prevention campaign
Work checklist
180
135
90
40
0
2007
136
2008
161
2009
170
Management status(unit: thousand tons)
▶Total waste generated
140
105
70
35
0
2007
99
2008
121
2009
129
▶Recycling volume
12
9
6
3
0
2007
6.4
2008
7.6
2009
1.5
▶In-house treatment
40
30
20
10
0
2007
31
2008
34
2009
39
▶Consignment of wastetreatment
Total marine waste volume(unit: ton)
160
120
80
40
0
2008
133
2009
112
Recycling of waste materials
In order to promote the in-house recycling of waste materials in an effective way, we operate
waste material recycling center. First of all, we prevent the disuse of recyclable materials through
evaluation of separate collection while sorting scrap iron for reuse. In addition, we put recycling
bins around working areas to promote employees' participation in recycling. We saved KRW430
million through recycling of waste materials in 2009.
Waste reduction activities
In 2006, DSME established the DSME Environmental Award and rewarded the organization with
excellent achievements of waste reduction during the production process. In 2009, with participation
of leading organizations, DSME carried out activities focusing on waste reduction before waste
generation, and saved KRW14.7 billion. In acknowledgement of these achievements, DSME was
awarded Ministry of Environment Award for the Leading Resource Recycling Company in 2009.
Ministry of EnvironmentAward for the LeadingResource RecyclingCompany
Work process of waste material recycling center
Recycling of waste materials
•Existing process
Collect scrap iron Move to scrap ironstorage place
Gather scrap iron Sell scrap iron
Scrap ironrecyclingprocess
▶ ▶ ▶
•Additioal process
Sort abandonedscraps
Recycle Move to waste materialrecycling center
Reuse at thefield
Sort scrapirons (70%)
▶ ▶ ▶
Find wastesnot cared
Collect Move to waste materialrecycling center
Collect wastesnot cared
(30%)
▶ ▶
▲
Major management items
·Optimization ofsteel yield ·Recycle of surplus
products ·Minimization of
malfunctioneddesign·Environment-
friendly design
Design
·Raw materialmanagement ·Management of
packaging material ·Packaging unit
management ·Supply
management ofmaterial
Purchasing/Materials
·Guidance forquality improvement
Quality
·Equipment TPM ·Purchasing highly
efficientequipment·Application of
adequateconstructionmethod
FactoryManagement
·Improvement ofconstructionmethod ·Reduction of
rework ·Material recycling
activities
Production
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┃Management of hazardous chemicals ┃
When purchasing chemical products, by checking MSDS (Material Safety Data Sheet), DSME
investigates the products which can replace the products including hazardous chemicals and
recommends using them. Furthermore, in production line, DSME periodically performs safety
education and training for workers dealing with hazardous chemicals, and checks regularly the
leak detector, block device and protection equipment in order to prevent leakage in advance.
┃Resources Down 20% campaign ┃
DSME promotes actively the campaign to reduce wasting resources in production lines. Moreover,
DSME is disseminating the resource reduction campaign to the whole company by adjusting the
room temperature to 28°C in office and management organizations.
Vehicle and oil
Since 'Resources Down 20% Campaign' was started in September 2009, the total number of
company vehicles decreased from 267 to 192. The number of vehicles allowed for internal use
also reduced from 985 to 745, which consequently reduced the cost and improved traffic situation
within the company. Furthermore, we banned idling of heavy machinery, thus reducing oil use by
more than 10% per month.
Office supplies
The cost of office supplies in 2009 dropped 23% from a year earlier because yardwide saving
activities were carried out such as recycling office equipment and used paper, and collecting idle
office equipment and shelves.
Water and electricity
By changing the application standard of water and electricity rate of dormitory, DSME reduced
costs by KRW80 million in 2009. Moreover, DSME is reducing costs through a variety of activities
such as adjusting the room temperature to 28°C in summer, removing lights in corridors, lounges
and windows and turning off lights in offices and computer monitors during lunch time.
Category ActivitiesRemoving or turning off the lights of corridors, lounges and windows/ Turning off
Electricity computer monitors during lunch time/ Banning the use of individual cooling and heatingfacilities/ Turning off lights before office hour (8 a.m.)
Computer Saving printer toner by lowering print density/ Extension of computer replacement peripherals period
Office suppliesReturning idle office supplies and bookshelves/ Recycling used paper and office equipment/ Readjustment of drawing standards
OilBanning engine idling/ Prevention of long distance movement of heavy machinery/Introduction of fuel card system and two-way (Cooling and Heating) air conditioners
WaterLowering water pressure of wash basin and toilet, Removal of water leakage part, Timereduction of one touch shower, Stop receiving water from cold bath
┃Cost reduction activities┃
Turning off window side lights Collection of used gloves
Hazardous chemical use(unit: ton)
100
75
50
25
0
2008
91.4
2009
35.4
┃Eco activities ┃
Reducing cost through "OK Campaign"
DSME has been promoting the "OK Campaign” in order to reduce sales costs by 20% for the
past three years. In the midst of the current business environment of overall depression, sluggish
orders, and lowering ship price, this campaign targets to obtain fundamental competitiveness by
production and technology innovation beyond "Resource Down 20% Campaign." In 2009, the
production division reduced an additional KRW48.8 billion compared to its original target, and the
technology division also reduced over KRW200 billion through simplifying designs and optimizing
specifications, thus exceeding its original goal by 120%. Furthermore, through PSM (Purchasing &
Supply Management), the Business Support Division reduced expenses by more than KRW200
billion through improving the purchasing method and supply chains as well as localizing materials.
In 2010, DSME will promote the second "OK Campaign" and save costs of KRW630 billion.
Green office
DSME is conducting "Green Office-Document 5S CoP" activities in order to improve office
productivity through effective document management. Through applying 5S activities from the
production line to document management, it increases office productivity by 20%. The business
management team reduced the number of documents per person to 35%, and also reduced the
number of the three-layer bookshelves in the office from 130 to 46. As a result, the number of
shared documents on company intranet greatly increased from five to sixteen documents per day.
In 2010, DSME plans to expand the "Green Office" activities to the whole company.
Green partnership
DSME introduced a 'Green Partnership' program in order to build a mutual green production
system between the parent company and outside partner firms throughout all processes in 2008.
We diagnosed the soundness of the working environment and carried out consultations in each
area of waste, water, air, soil and toxic materials. The six companies with exemplary performance
were awarded 'Green Partnership' certification in 2009. Green partnership was confined to the
ship block manufacturers in 2008. However, we expanded the category to pipe suppliers, painting
firms and our Chinese subsidiary, DSSC (DSME Shandong Co., Ltd.) in 2009. We plan to support
them in obtaining the environmental management system 'ISO 14001', which is an international
environmental certification.
Green certification
DSME introduced an international environmental management system (ISO 14001) and a safety
and health management system (OHSAS 18001), based on which we built a system suitable for
the company and acquired certification from external agencies. We have HSE key persons in every
organization within the company as well as each partner firm to set annual goals and conduct
quarterly internal evaluations on them. Biannual reviews are also made by certification bodies to
ensure our environmental and safety controls are maintained and updated.
'Document 5S' activities (above), Changed office environment after theactivities (below)
8
6
4
2
0
2008
3
2009
6
No. of partners that awardedgreen partnershipcertification
2008 2009 2010 2011 2012
Green partnership
Mid-to long-term management target
1st
phase
2nd
phase
Examination/evalution 6companies
PromotionCertifiction(28% ofpartners)
Certification(36% ofpartners)
Certification(45% ofpartners)
Certification(53% ofpartners)
Examination/evalution
ISO14001 OHSAS18001
TargetMore than half of the
partner companies will receivegreen partner certification in
2012 by expanding the scopeof partners that receiveexamination/evaluation.
Building...
We imagine a world full of happiness. We draw a world where everyone
lives in harmony. DSME’s outreach to needy neighbors and open
communication with our stakeholders such as customers, partners, local
citizens, stockholders and employees are contained here.
World full of happiness
Social Performance Employee Satisfaction 40
Safety and Health 45
Social Contribution 52
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Employee Satisfaction
DSME carries out human resource management in a fair and
rational manner in all areas including recruiting, evaluation,
compensation, and fostering.
┃HR policy ┃
DSME recognizes the importance of employees as the source of a company's competitiveness
and therefore carries out fair and rational personnel policies in all areas such as recruiting,
evaluation, benefit, and training. Especially, under our HR philosophy of fostering elites for the
future as the driving force of the global shipbuilding and marine industry, we have continuously
increased investment in human resource development and training.
Employee management system
Developing talentsEducation for new recruits
Realization of a warm and just personnel management (employment stability / capability oriented personnel management), Hamony between employees and the company
(presentation of growth vision), Cultivation of a sound coopoeative organised spirit
HR with individual / organization's capabilities at the center
Supply of personnelthat confoms
demand
Capability / Results oriented
personnel evaluation
Competitive andreasonable reward
system
Nourishment ofpersonnel withcapabilities andleadership at the
center
Conformationwith
managementstrategy
Support onaccomplishingmanagement
goals
Realizeessential valusof corporate
culture
Creation ofDSME's 100 years history
Mission
HR Direction
HR Practices
HR Fundamental
┃Performance centered evaluation ┃
DSME's performance management
Recognizing that performance-based compensation is crucial to growing into a global leader in the
era of global competition, we are operating a new performance management system which is
totally different from the previous scheme, thus creating a fair evaluation culture.
Performance management system
Through performance management system, DSME is encouraging accomplishments and individual
development that match with our company's future strategy. We are also conducting a transparent
evaluation process based on smooth communications between organizations and team members.
In the meantime, the system is conducive to employee growth and cooperative teamwork.
Performance management system
Capability developmentTeamwork promotion
Growing intothe a world classshipbuilding andmarine company
Realizing corevalues of trustand passion
Creatingcustomer-
oriented value
Realizing the value of
"Global For Most,For FIRST"
Link between Missionand Vision
Connection withbusiness strategy
Re-Alignment
Feedback Feedback
PM Set-up PM ValidationPM Operation
Goal agreement
Performance goal, Capability goal
Goal management
Evaluation, Compensation Education/Development
Achieve businessstrategy
•Internalizing corevalues•Achievement
through work•Respecting
standards and ruleson work
•Establishing andstrengthening theleader trainingsystem (A/L)•Fostering global
elites
•Securing businesscapacity to help thecompany carry outmanagement tasks •Strengthening nece-
ssary capacity foreach level[Job R&R]
•Innovation of on-siteculture•Win-win labor
managementrelationship•Creating an
accident-freeworksite
┃Fostering talents ┃
Our purpose in training talents is to strengthen necessary capabilities of all employees. We also
aim at bolstering internal competitiveness to help us implement our vision and mission
successfully by promoting employees' desire for growth.
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Employee development system
Value Creator/Creating high performance [organization member/professional/innovation man]
DSME SpiritCenter
Leadership CenterProfessional
CenterCulture Innovation
Human Performance
Improvement &Support forEmployees' Desire for Growth
Comprehensive heavy industries group
with the capacity to provide total solution
Vision 2020
Traininggoal/direction
5 Core successpoints
HRD strategy
Personnelcultivation mission (including vision)
DSME Leadership Model
HRM (securing talents, placement, evaluation, migration, institution, system
DSME Spirit-(Core value /Attitude) Driven HRD
Competency-Based HRD Innovation-Oriented HRD
Classification Mandatory LearningJob training
Self-Basic course Intensive course
Core talentsdevelopment
┃Office and technical posts┃
Advancement
A-learningNewly appointed leader
Advancement
Breakfast seminarNewly appointed executive
Advancement
Advancement
Advancement
F/U courseO/T Introduction
Executive
Notappointed
Appointed Group leader
General managerexecutive advisor
Deputy manager
Manager
Assistant manager
Below assistantmanager
Domestic/Internationalstudies
GlobalLeader
DSM
EM
BA
Professionallevel
Planningskill/Negotiating
skill
Marine
PM
PracticalEnglishby
team
Languagecourse
Cyber
Com
missioned
trainingto
shipordercom
panies
Com
missioned
trainingto
externalorganizations
Basic courses for generalmanagers
Basic courses for deputymanagers
Basic courses for managers
Basic courses for assistantmanagers
Classification Mandatory Education
Innovationcourse
(selectedemployees or
applicants)
Enhancing workcapability(selected
employees)
Languagecourse(appli-cants)
┃Production posts┃
Workplace HR consultant course (HR 2 group)
Leadership course forexperienced heads
Introduction course for newlyappointed heads
Training courses by jobhierarchy (in case of promotion)
Follow-up course fornewly hired
Appointed
Not appointed
Valueinnovation
course/production
innovationcourse
Safetyeducation
(mandatory)
Quality
education(selected)
Custom
ersatisfactioncourse
Jobtraining
course
Cyber/reading-based
learning
Basic
English
VideoEnglish
Fostering future leaders
We have operated the DSME MBA course, a course for future chief executives, who will lead the
shipbuilding and marine industry since 2004. A total of 138 trainees have completed the course
over five years till 2008, and the 2009 DSME MBA course was conducted over six months as an
intensive course for the 6th class of trainees. The participants took regular MBA classes like future
management, innovative management and leadership as well as having the opportunity to learn
problem-solving skills and global management methods through workshops.
┃Welfare ┃
Housing support
DSME, which has employee apartments with capacity to accommodate 2,300 families and
dormitories with over 2,500 rooms for singles, completed a new dormitory in 2009. The well
equipped Dumo dormitory, with the best residential environment, was built to keep up with the
increasing number of new recruits. Meanwhile, we are also conducting programs such as housing
fund support to help our employees make a stable residential life.
Educational support
We are operating schools that range from kindergarten to high school so that our employees and
their families are provided with good education, and providing high school and college
scholarships not only to our employees, but their families as well. In 2008, DSME bought Geoje
College in order to pre-train professionals for the shipbuilding industry, customize human
resources development for the incumbent employees, and establish a shipbuilding industry R&D
system.
Healthcare support
We operate an affiliated medical clinic, health classes and a healthcare center within the shipyard,
and a general hospital outside the shipyard to support our employees and their families with
regular medical checkups and hospital expenses. Moreover, we support the medical expenses
(operation and hospitalization costs) for immediate family members of our employees with
congenital heart disease and childhood cancer.
DSME MBA intensive course
Dumo dormitoryRegular medical checkups
Onsite
organizationvitalization
course(applicants)
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Supporting expenses for congratulations and condolences
DSME supports not only the various occasions of our employees, but also provides expenditure
for congratulations and condolences of our partner firms' employees and their families. We also
grant our employees leave of absence to raise their morale on the occasion of moving, their 60th
birthday and childbirth.
Cultural and recreational support
We host various cultural events such as concerts, plays, lectures and exhibitions to enhance the
sentiments of our workers and local citizens, and support about 300 groups within the company
dedicated to sports, hobbies, and social relationships. Athletic meetings, talent contests, and
cultural events are also held for foreign workers in our company. Moreover, our employees are
allowed to use the company's condominium to get rest and refreshment, and we are doing our
best to enhance the quality of life of our employees.
┃Employee satisfaction activities ┃
Rewarding outstanding clubs
DSME has rewarded outstanding clubs and provided prize money for the clubs that have
enhanced the company's image internally/externally through various ways like contributing to the
local community, creating a healthy corporative culture and so on. At the 1st Best Club Award held
in 2009, as a means to activate internal clubs, the 'Woojeong Alpine Mountain Climbing Club' won
first place by renovating the walking paths of 10 mountains in the region and holding various social
activities like mountain climbing for the disabled etc. The second place went to the 'Beautiful
Disital Camera World’, who have took a photo services to senior citizens while the third place went
to the 'Geoje Mask Dance Conservationists' who have offered free performances in local events
for the elderly. There are currently 1,494 clubs for sports/leisure, culture/arts, friendship, alumni,
and other sectors.
'Group Counseling Program for Parents'
We operate a group counseling program for parents to provide systematic counseling to
employees with young children and teenagers. The program was created to prevent potential
conflicts within the household like parent-children relationships, education and others and also to
help employees form a happy family. Moreover, with the understanding that a peaceful family
stabilizes the company, we have employed a clinical psychologist and have operated counseling
center called 'Maeumnoori Happy Center' since 2003, to solve personal, work-related problems,
thus enhancing the physical and mental health of our workers.
Labor-management joint culture event 'In unity! To the world!'
DSME held a joint labor-management event 'In unity! To the world!' to express gratitude to our
employees who have worked very hard for the advancement of the company. A total of over
30,000 employees, families, and local citizens participated in various performances and family
programs.
Rewarding well-performing clubsLabor-management joint culture event
┃HSE Credo ┃
We, members of DSME, seek to establish an HSE that sticks to the basics and principles based
on respect for human dignity and love.
Safety and Health
DSME builds a pleasant and safe worksite through operating a
variety of programs such as education, safety inspection, and
health promotion.
•Priority on HSEWe will make no compromises with respect to HSE.
•Preventive ApproachWe will promptly eliminate risk factors upon their discovery and carry out preventive action.
•Health PreservationWe will promote health and improve the work environment to enhance quality of life.
•Environmental ActivitiesWe will carry out environmentally friendly activities to realize pollution-free, green shipbuilding.
•Responsibility and ObligationWe will fulfill our obligations through responsible action.
HSE Code of Conduct
HSE policy
ㅡEstablishing a self-abiding HSE culture•Disseminating IIF culture •Strengthening HSE training by
position•Vitalizing safety communication
(sensitivity safety management)•Strengthening of the HSE role and
responsibilityㅡSecuring a safe working environment•Observing standard work
regulations, practicing JSA•Enhancing on-site HSE activities by
supervisors•Strengthening HSE support for
internal/external partners•Rooting RCA and strengthening
prevention of re-occurrencesㅡSecuring a healthy worksite•Improving the working environment•Improving employee health•Preventing work – related diseases•Strengthening management of toxic
materialsㅡRealizing a comfortable worksite•Reducing wastes and recycling
resources •Abiding by environmental standards
(air, water, soil pollution)•Responding to environmental risks •Broadening the base of green life
Securing a safeworking
environment
Establishing aself-abidingHSE culture
Realizing acomfortableworksite
Securing ahealthy worksite
HSE policy and main direction
HSE vision
HSE operation team
Generalmanager of
shipyard
Safety and healthgroup
HSE customersupport group
Environmentalmanagement group
HSE support group 1
HSE support group 2
Industrial Safety and Health Committee
Transportation SafetyCommittee
Safey representative council of partners inside the company
Safety council of partnersinside the company
Safety council of partnersoutside the company
No injury, no illness,
no pollution
┃HSE management system ┃
In order to protect all workers, equipment, and the environment, DSME is operating its HSE
Management System. This system states the guideline and standards for safety and the
environment and encourages our employees to execute it, and management evaluates the results
of the HSE plan to eliminate and mitigate potential dangers in safety and the environment.
HSE performance indicator management system
We manage HSE performance indicators to evaluate and effectively handle the safety points of
each division, including that of business partners. From April 2010, the ‘HSE performance indicator
standard’ will be subdivided in order to prevent HSE risks and operate HSE performance more
effectively. The new ‘HSE performance indicator’ consists of 6 items of prevention, 6 items of
execution, and injury deduction. Moreover, the new indicator stipulates a stricter rewards and
punishments, and expands individual rewards. Other key changes are as follows: ▲quarterly to
monthly (evaluation period) ▲relative evaluation→absolute evaluation (evaluation method) ▲part
unit→position unit (evaluation unit)▲qualitative→quantitative (evaluation item).
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HSE vision
Performance indicator Items
Prevention scoreRegular checking, education, improving human engineering, management
system, daily JSA activity, prevention of near-miss accidentsUse of temporary workforce, voluntary activity to improve HSE, prevention of
Execution score accident reoccurrence, improving the inspection findings, improving the working environment, responding to major requirements of customers
Injury deductionMajor accidents and industrial accidents, small/large/fire/traffic accidents, reporting delays
┃HSE performance indicator structure┃
Performance indicator monitoring byorganization
HSE Management System (OHSAS, EMS)
HSE Code of Conduct(obligation, behavior)
HSE Faith
Unanimous participation(labor/management,partner companies)
Provicing guidelinesFostering awareness and
culture
Promotion
Goalaccomplishment
Result
Education on a systematicapproach
Education on a stronginfluence
Stimulation
Sharing
HSE Vision
People oriented management to improve the quality of life
1. Ordinarysafety
management
2. Dangerouswork
management
3. On-sitesafety
education
4. Safetymanagementactivities in
case ofemergency
HSE PDCA system
Through PDCA (Plan - Do - Check - Act) process that covers from establishing the inspection plan
for each team to conducting improvements, DSME is automating statistics and aggregations on
HSE activities. We are also seeking practical improvements on field safety, strengthening
prevention activities through HSE general performance indicators.
DSME safety inspection system
Weekly inspections by HSE executives and corporate level joint safety inspections are carried out.
In addition, safety inspections focused on risk process are conducted every week while
inspections on a specific process with frequent accidents are done on monthly safety check day.
Other than these, we are constantly pursuing safety management by placing HSE personnel in the
field to support onsite safety activities, dangerous work management, and safety measures in case
of emergency as well as safety training at worksite.
Overview of integrated HSE computer system
On-site activities by HSE support agent
Plan
•Head of team/part (more than two times)•Focused on important
inspection items and sites
Do
•Head of team/group,representativve ofpartners, head of relevantfunction•Inspection visit by HSE
support agent
Inspection
Check
•Items that are pointed out•Action taken immediately,
improvement requestform, amendment requestform, etc.
Issue of improvementreport
Action
Amendmentresult report
On-site confirmation, assessment and feedback by HSE organization
Inspection plan by team(month)
Intensive safety check on dangerousprocessSafety check day Safety training for HSE managers
•Safety gear, safety workstandard•Establishing devices at
safety facilities•Amendment request form,
improvement request form
•Approval of dangerouswork/direct and managesafety•Safety management in
case of major productionevents (large-sizedloading, T/O, etc.)
•Weekly classroomeducation at worksite,safety OJT for the newlyhired employees•Other special safety
education
•Evacuation and responseat early stage in anemergency•Relief and rescue
operation
┃Safety and health education ┃
Safety education system
DSME is conducting various educations by category through its own cyber programs and video
programs.
Safety and health education facilities
We at DSME, conduct an experience-based education that enables trainees to effectively respond
to real situations through the HSE training center. Meanwhile, we were the first company in Korea
to operate a 'mobile safety education bus' and we are conducting field-based education by
request from the field.
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DSME HSE education structure
Safety training for supervisors(16H)
HSE cyber education (16H) Training for new headsTraining supervisors
Passion Hanmadang classroomsafety training (1H)
Safety experiment morningsession
Training within eachdepartment
Regular training(office/production posts)
New employee training (8H)Special education withineach department (6H)
HSE support agent on-site safetytraining (2H)
New employees
Industrial healthcourse
HSE management systeminspectors
Commissionedtraining to external
organizations
Rescue/salvage training forfire fightersHSE experts
Cranes Forklift Flaggers FootholdWirelesscranes
GondolaInternal qualification
training
Special safety training on majoraccidents
Explanatory session on workingenvironment evaluation results
External expert lecture
Ship owner/classification agent/inspector Induction training
Special safety training forproject
Internal HSE lecturercertificate course
Internal HSE lecturerreeducation course
Argon/nitrogen gas user trainingSpecial HSE training
Korean language course(40H)
Half-yearly classroom safety training for foreignersForeign workers
HSE training centerSpecial HSE trainingSafety training by organization
Feature •Training hours: 16H (▼ 8H)
•Increasing training concentration level and effectiveness
•Theory and experience (three levels), OJT repeat training
Level 1 •Special education (HSE training center)
- Theory lecture (4H)
- Field education on 7 safety rules (4H)
Level 2 •HSE support agent education (field education)
- Theory lecture (4H)
Level 3 •Education within the deployment department (workplace)
- On-site self-OJT training (6H)
Textbook •Theory (movies and videos), textbooks
Lecture method •Participatory type
Trainer's qualification •All lecturers have relevant certification
Safety education for new recruits
We plan to reform safety education for new recruits from the existing four steps to three steps to
enhance the efficiency of the education, which is carried out for employees from hiring to three
months after joining the company. Moreover, we have advanced our education programs into a
participatory system to enhance understanding of new employees through videos and movies.
Improvement of safety education for new employees
Courses Main contentOffice, technical posts under direct supervision of
HSE cyber education shipyard head/new chiefs and heads of partner
companies/training for heads of group (total 1,462 people)Video education on fall prevention Title: My life partner (shown 100 times)Video education on cycling safety -
Special safety education on major accidentsAll users of argon and nitrogen gasSkid beam collapse, platform fall
Safety education for foreigners by language 15 countries, 1,577 people trained (3 hours every quarter)
┃Main safety training courses┃
Korean language education for foreigners
Executing safety training observation
With our subcontractors, DSME is actively engaged in accident prevention by carrying out safety
training session for various circumstances such as crashes, falls, and flying debris accidents. The
training are carried out by the types of possible accidents in the work fields of each organization to
predict the risk of injuries from various accidents. Education on how to wear safety gear is given at
the same time, maximizing the effectiveness of safety accident precautions.
Korean language education to increase safety consciousness
To increase safety consciousness of our foreign workers and to help them settle quickly, we have
promoted the "Foreigners' Korean language school" for the past 3 years and in 2009, expanded
the program to ship owners and classification members. There are currently 1,300 foreigners
working for DSME. However, since the number of foreign workers increased, we supplemented
safety related materials in our training courses to prevent accidents and also increased the training
period from 8 to 10 weeks, while increasing the number of lecturers from 4 to 11. As a result, the
effects of training are substantially improving.
┃Healthcare activities ┃
Operation of DSHC (DSHC: DSME Smile Health-Care Center)
We map out a plan to operate the DSHC in 2010 with a view to enhancing life quality of our
employees and providing them with an optimal working environment.
DSHC direction
DSME set a DSHC direction by stage to improve the quality of life and to increase life span in the
long term. For this, we plan to facilitate non-smoking, body fat reduction, temperance
improvement and also create a companywide atmosphere for health improvement. We will
drastically lower the rates of smoking and overweight in 2012.
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SAFETY AND HEALTH
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Health campaign
Goal of DSHC
Direction by stage
Short-term2010
•Success in quitting smoking (60%)
•Success in reducing body fat (45%)
•Reducing risk of brain cardiovascular(20%)
•Success clinical test results intemperance (20%)
•Creating an atmosphere for healthenhancement
Mid-term2012
•Reducing companywidesmoking rate (20%)
•Reducing companywideoverweight rate (10%)
•Reducing risk of braincardiovascular (20%)
Long-term2012
•Quitting smoking•Decreasing body
fat
•Improving thealcohol drinkingculture
•Looking after thesick (D2) (Braincardiovascular 3main illnesses)
•Health campaign(blood donation/organ donation afterdeath, healthpromotion booth)
Non-smoking,overweight fund
Temperance/Braincardiovascular
Health enhancementclinic
Social contributionactivities
DSHC (DSME Smile Health-Care Center) Operation
Establishing ahealthy and fun business
•Expanding life span
•Improving quality of life
•Creating best workingenvironment
Activities to improve work environment
In 2008, DSME produced a 'guideline for ventilation fans' by establishing methods of ventilation
suitable for the field, based on the 'Ventilation Standardization Consulting' conducted in 2007.
Moreover, in 2009, we established a standard control method in consideration of harmful materials
in each process of building ships. Based on this, we plan to provide an appropriate working
environment for workers by forming the optimal method of ventilation on future marine projects
(Drill-Ship, Rig, FPSO).
Cartoon that shows the effects ofdrinking on safety and health
Improving work environment
Scope Details
Health enhancementSmoke-quitting/overweight fund programTemperance program
Management of 3 main Management program for brain cardiovascular (high blood illnesses in brain cardiovascular pressure/high cholesterol/ diabetes D2 patients)Health campaign Health promotion campaignHealth related social contribution Labor-management joint blood donation/organ donation drive
┃Health improving activity scope┃
Level 1 (Mar. 2009) Level 2 (Apr.~Aug. 2009) Level 3 (Sep.~Nov. 2009)
Selecting demonstrativeworkplace and forming aCommunity of Practice (CoP)
① Selecting demonstrative workplaces:(indoor work) No.2 assembly plant(outdoor work) container ship*Considering measurement resultsand order backlog
② Formation of CoP: (indoor work)production staff of No. 2 assemblygroup (outdoor work) Load/Design/Painting 2 group production staff(support) production support group,equipment support staff, HSE supportgroup, safety and health group, Hulloutfitting design group
Drafting and evaluating thestandard control method
① Process categorization : Processcategorization of standaer controlmethod per harmful factors (consideringthe process flow)
② Designing the standard control method :Forming the control method based onon-site tests and the opinions of workers
③Monitoring working environment : Finaldecision on the control method afterunderstanding workability andeffectiveness of harmful factor control
④ Drafting standard control method:Drafting in consideration of managementorganization and operating method byprocess
Concluding the demonstrativeworkplace and expansion to allworkplaces
·Indoor work: Setting the HSE control
standard to apply to all manufacture
group, assembly 1~5 group
·Outdoor work: Setting the HSE control
standard container, LNGC, Ro-RO,
VLCC/COT, Deck house, PE block
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Social Contribution
•Chairman of Management Committee: Head of GeneralAffairs Team•Member of Management Committee: Secretary general/
secretary/ heads of each organization and 1 nominee•Secretary-general: Head of General Affairs Team•Secretary of Executive Office: 1 dedicated personnel
DSME is leading the way to make the world a better and more
harmonious place through various social contribution activities.
DSME started a social volunteer group consisting mainly of its employees in 1993. Currently, it is
bringing warmth to the society through 'DSME Public charity group', which was established in 2003.
Social contribution system
Social contribution organization
Establishment of infrastructure for social activities (social contribution calender, self-effort management, social contribution fund)
Executives' and workers' social contribution activities based on local community
Korea's representative social contribution activities
Close-to-local type global social contribution activities
DSME's system for social
contributionactivities
Head Deputy Head
ManagementCommittee
Secretary-general
Secretary
Chairman
CommitteeMember
ExecutiveOffice
Public Volunteer's Committee(3,500 members)
Damuldan (2,902 members)
The Sound of New Buds Committee(1,456 members)
True Love Welfare Committee(1,227 members)
Technology Sharing Committee (61 members)
Hope Community Service (83 members)
Name Major activities
Environmental preservationVolunteer activities for local communityLove nationLove companyLove communityCare childrenBlood donationInvite young patientsAssist the elderly who live alone and welfare facilitiesScholarshipBathing for the elderly
Technology Sharing Committee Home building and repairsBathing for the elderlyAssist the elderly who live alone and welfare facilities
┃Major activities of DSME Public Service Group┃
┃Infrastructure for social contribution ┃
Social contribution calendar
DSME operates a social contribution calendar system on the company's portal sites so that any
employee can participate in a volunteer activity of their choices. The social contribution calendar is
designed to automatically link the registered accomplishments to the Social Volunteer History
Management System, which records the contents and number of hours of the person's volunteer
work.
Social contribution award system
We are creating an environment where employees can actively participate in social contribution
activities by granting the social service award to high-performing individuals and groups that have
continuously invested time during weekends and after work in helping out facilities for the
disabled, helping undernourished children, washing and taking care of senior citizens and
conducting other activities.
┃Social Contribution Activities ┃
Cleaning the environment
DSME employees have spent weekends and holidays in cleaning the environment. Moreover, in
2009, 150 new employees picked up trash from the Juklim Beach and cleaned the streets before
participating in their ocean training, a part of their regular orientation. Also, 40 members of the
scuba club helped maintain the Geoje ocean clean by participating in sea cleaning activities.Cleaning the environment
Public Volunteer's Committee
Damuldan
The Sound of New BudsCommittee
True Love Welfare Committee
Hope Community Service
Helping children with leukemia and cancer
'The night of new life, sea festival,' a charity event, designed to encourage children suffering from
cancer and leukemia and to give hopes for recovery, was hosted in Myungsa Beach, Geoje City in
August 2009. The event marking its 20th anniversary has been organized by the DSME volunteer
group, ‘The Sound of New Buds’. Children with leukemia and cancer, their families and hospital
staff from 12 hospitals nationwide and about 700 people from supporting organizations across the
nation including the Korean Association for Children with Leukemia and Cancer (KACLC) attended
the event. Established in 1990, '‘The Sound of New Buds’ is an organization providing support for
children with leukemia and cancer, and has been running campaigns of monthly donations to 30
children with the sickness. In addition, the DSME social service group raised KRW1.3 million by
selling ice cream and other goods at the 'In unity! To the world' joint labor-management culture
event. It was donated to help students of local elementary schools suffering from leukemia.
Furthermore, DSME donated the Safety Award Prize money it had received from the Norwegian
Odfell company to the family members of partner companies undergoing treatment for leukemia.
Bathing service for the disabled
The members of the True love Welfare Group provided social service at SeongSimWon, a nursing
home for elderly citizens with Hansen's disease in Sancheong, Gyeongnam. They cooked food,
cleaned the living areas, and took care of the gardens while also providing KRW2 million worth of
daily goods like soap, toothpaste and others.
Vitalizing the local economy
We have tried to increase sales and vitalize the local economy of small stores in Geoje which suffered
a sales decrease due to the business expansion of Super Supermarkets (SSM) by purchasing
KRW1.8 billion worth of 'Geoje love gift certificates' in time for the Korean thanksgiving day.
Sharing Kimchi
DSME held the first annual Making Kimchi for charity as part of DSME's commitment to the local
community. About 130 volunteers from the client side and classification societies such as
Transocean, Petroserv, OOG (Odebrecht Oil Gas), GrupoR, TMT Drillship, Anangel, and the Okpo
International School as well as 'Hope Community Service' volunteer group made two tons of
Kimchi. It was delivered to 10 welfare organizations in Geoje.
K-point: Knowledge for Colleagues, Love for Neighbors
We donated approximately KRW130 million to Geoje city that was raised through the end-of-the-
year fundraising event for the needy held by the labor-management community. This donation is
being used for building facilities for the disabled, self-support centers, welfare facilities for the
youth, and providing lunch to undernourished children. This donation especially contains the
KRW30 million incentives 'K-Point (Knowledge Point)' received for our activities in the knowledge
management area.
Global Top Cooperative
Our external cooperative council 'Global Top Cooperative' donated KRW5 million to DSME for
helping the needy. This fund was used to support facilities for the elderly and helping underfed
children. Global Top Cooperative regularly donates at the end of every year to help the needy.
Remodeling houses
DSME employees helped remodel houses of senior citizens in the Jangmok-myeon Hwangpo
village and Hacheong-myeon Yoogye village in Geoje through their affiliated social service groups.
The living areas were much improved after changing electric wiring, painting outside walls,
renovating roofs and so on.
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'The night of new life, sea festival'Sharing KimchiGlobal Top Cooperative's donationRemodeling houses
2009•Received Korean Export Management Award by the Ministry of Knowledge
and Economy•Leading Resource Recycling Company by the Ministry of Environment•Won 10 billion dollar Export Tower on the Trade Day•Outstanding security inspection-Best Security Corporation by the Ministry of
Defense
2008•Awarded the Industrial Service Medal and the Presidential Recognition in
Shipbuilding Korea 2008•Awarded the Presidential Award in '2008 Korea IT Innovation Awards'•Global Management Award•Awarded Top Class Company CEO Prize•Obtained ISO 27001 certification
2007•Awarded the Presidential Award in Korea Technology Awards (shared by 3
shipbuilding companies)•CEO Nam Sang Tae awarded Gold Tower Order of Industrial Service Merit,
Won 6 billion dollar Export Tower on the 44th Trade Day•Received Certification of Manufacturer of World's Top Class Products of the
first half of 2007 from Korea Industrial Technology Foundation•Selected as a Company of Excellent Governance by Korea Corporate
Governance Service•Awarded Grand Prize in Large Enterprise Section of the 19th Labor-
Management Cooperation Awards by Korea Employers Federation•Awarded in the Transparent Management Section of the 5th Korea Ethical
Management Awards by New Industry Management Academy
2006•Ghassan Ghandour (Gulf marine) Industrial Service Medal - The 43rd Trade
Day•LGN-RV selected as one of the top ten new technologies
(Ministry of Commerce, Industry and Energy)
2005•Awarded Grand Prize for Best IR of the Year by MoneyToday•Selected as the best corporation in the fourth annual Korean Best
Corporation Awards, Received world-class business grand prize (Korea CEOAssociation)•Awarded 21st Century Management Grand Prize in technology category (The
21st Century Top Management Club)•Won the award for Excellent Transparent Management (Five business
associations)
2004•Awarded Grand Prize for Best IR of the Year by MoneyToday•Won Stevie Awards (IBA)•Won Best Talent Management Award (Korea Management Association)•Won top prize in Green Management Award (Korea Management
Association)•Selected for best corporate governance (CLSA, Asian Corporate Governance
Association) Included in top 6 firms along with Samsung Electronics, POSCO•CEO Jung Sung Leep named the 2004 CEO of the Year in Asia in the
transport category by Asia Equities Market Report (Institutional InvestorResearch Group)•Ranked 19th in sales and net profit among top 100 Korean firms
(Joint selection by Korea Information Service & Hankyung Business Weekly)•Selected for excellence in corporate governance
(Korea Corporate Governance Support Center)•CEO Jung Sung Leep won 13th Dasan Financial Awards' CEO category
(Korea Economic Daily)•Awarded the top prize in community service in local economy category
(Lions Club)•Ranked 3rd in the third annual survey of corporate transparency
(Financial weekly Economy 21, Samsung Economic Research Institute)
2003•Awarded Grand Prize for Best IR of the Year by MoneyToday•CEO Jung Sung Leep awarded Gold Tower Order of Industrial Service Merit,
Won 2 billion dollar Export Tower on the 40th Trade Day•Awarded BP Group's Helios Awards for Performance and Partnership•Awarded Global CEO Prize (Maeil Business Newspaper)•Named the workplace with best health and safety practices in the
shipbuilding industry (Labor Ministry)•Selected for excellence in corporate governance (Korea Corporate
Governance Support Center)
2002•Awarded Tower Order of Industrial Service in Vocational Ability Development
Training Promotion Contest (Ministry of Labor, Human ResourcesDevelopment Service of Korea)•Awarded Best in Corporate Management Improvement
(Korea Management Association)•LNG carrier selected a world-class product
(Ministry of Commerce, Industry and Energy)•Named top investment candidate among domestic shipbuilding industry
(Maeil Business Newspaper)
2001•Obtained OHSAS 18001 certification•Awarded the silver prize in National Convention on Quality Control Circles on
Export Day•LNG carrier awarded Iron Tower Order of Industrial Service Merit for
commercializing new technology (Korean Agency for Technology andStandards)•LNG carrier selected as Korea's top ten products (Samsung Economic
Research Institute)•LNGC IAS certified as New Technology (NT) and Excellent Machine (EM)
(Ministry of Commerce, Industry and Energy)•LNGC IAS, named Korea's top ten new products to lead the new millennium
(Ministry of Commerce, Industry and Energy)•Obtained Defense Quality System certificate (Ministry of Defense)
Awards and Recognition
DSME has grown into a global shipbuilding and marine company
based on excellent technologies and optimal facilities.
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Description Index PageCEO message 1.1 p 2∼3
Introduction Company profile 1.2 p 4About the report 1.3 p 0Summary 1.4 -Environmental policy 2.1 p 22
Environmental Mid-to-long-term environmental goals 2.2 p 22Vision and Strategy Environmental goals accomplished in the year 2.3 p 22~23
Environmental goals of the following year 2.4 p 22Environmental management system 3.1 p 23Environmental accident response system 3.2 p 24Environmental audit 3.3 p 24
Environmental Environmental education 3.4 p 27Management System Environmental performance evaluation (EPE) 3.5 p 26
Environmental accounting 3.6 p 25External environmental investment 3.7 -Resource use 4.1 p 34~35Water use 4.2 p 32~33Energy use 4.3 p 36Response to climate change 4.4 p 28~29Use and emission of ozone depletion materials 4.5 p 30Emission of air pollutants 4.6 p 30Emission of water pollutants 4.7 p 33
Environmental Waste discharge and recycling 4.8 p 34~35Impact and Performance Soil contamination management 4.9 2008 ESR
Environmental impact assessment 4.10 -Eco-friendly products 4.11 p 29, 31Eco-friendly packaging 4.12 -Eco-friendly transportation 4.13 p 29Health and safety 4.14 p 45~51Noise and vibration 4.15 -Harmful chemical substance management 4.16 p 36Ecosystem preservation effort 5.1 p 53Eco-friendly supply network management 5.2 p 37
Stakeholders PartnershipLegal compliance 5.3 -Certification and awards 5.4 p 37, 55Environmental communication activities 5.5 p 0, 22Response to international environmental regulation 5.6 p 28
┃General Status┃
Ministry of Environment Environmental Report Guideline
DSME 2009 Environmental & Social ReportReader Survey
•To: DSME HSE Operation Team•Address: 1, Aju-dong, Geoje-si, Gyeongsangnam-do •Fax: 82-55-680-2177
DSME places great value on the opinions of the readers. Please take a moment to consider the
following questions. Your feedback will be invaluably reflected in our future reports.
1. Please state your affiliation.
①Employee ②Shareholder ③Customer ④Supplier ⑤NGOs
⑥Local resident ⑦ Investment analyst ⑧Student or academic ⑨Others
2. How satisfied are you with the report?
①Extremely satisfied ②Satisfied ③Average ④Not satisfied ⑤Extremely not satisfied
3. Which section was of most interest to you?
①Sustainability of DSME ②Economic performance
③Environmental performance ④Social performance
Environmental Management Employee Satisfaction
Activities and Performance Safety and Health
Social Contribution
4. Please comment on areas that need improvement in the report and information you would like to
see in our future reports.
5. If you have further comments, please specify.
※Please provide us with the following information if you would like to
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