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ESG

  • Environmental

Environmental

Environmental Data

Environmental Management

- Environmental Management Strategy

PANASIA is committed to sustainable development through eco-friendly
business practices. To address the global climate crisis, the company
actively works to reduce resource and energy consumption, lower
greenhouse gas emissions, and minimize waste generation.
Based on the ISO 14001 Environmental Management System, PANASIA
has established environmental policies and a structured management
framework to effectively identify, assess, and improve environmental
performance and related risks.

- Environmental Policy and Objectives

Following the principle of prioritizing the environment, PANASIA
operates an environment-centered management system and
carries out various eco-friendly initiatives as part of its commitment
to responsible management.

- Environmental Management Framework

Optimized Resource
Management
Strategic Direction
Establishment of a green
workplace based on
eco-friendly processes
Implementation Objectives
  • Continuous operation of the
    Environmental Management System
  • Development of eco-friendly
    technologies and products
  • Improvement of building and
    process infrastructure
  • Advancement of smart factory systems
  • Implementation of environmental
    campaigns
Optimized Resource
Management
Strategic Direction
Systematic management of
resource and energy savings
and greenhouse gas emissions
Implementation Objectives
  • Introduction of power-saving
    equipment for production machinery
  • Expansion of green-certified and
    high-efficiency equipment usage
  • Participation in the Carbon
    Neutral K-RE100 initiative
  • Installation and operation of solar
    power generation facilities
  • Waste reduction activities and recycling
  • Management of Scope 1 and
    2 emissions and resource recycling
Internalization of
Environmental Awareness
Strategic Direction
Enhancement of environmental
awareness and participation
in environmental initiatives
Implementation Objectives
  • Raising environmental awareness
    through education and training
  • Development of internal
    environmental specialists
  • Strengthening activities to
    prevent environmental incidents
  • Compliance with environmental
    regulations

Environmental Goals and Implementation Strategy

- Greenhouse Gas and Energy Strategy

Strategy
In line with government policies such as the GHG & Energy Target Management System and Emissions Trading Scheme, PANASIA regularly analyzes energy consumption and sets annual reduction targets to improve efficiency and reduce costs.
Target
2030 Goal | Reduce greenhouse gas emissions and energy use per sales unit by 3% (based on the 2022–2024 average).
Performance
To achieve this, PANASIA is improving internal systems and facilities—analyzing operational efficiency and upgrading infrastructure. Efforts include LED lighting replacement, high-efficiency chillers and air dryers, HVAC and pipeline improvements, and other initiatives to reduce energy consumption. While current unit intensity per revenue has not yet declined, ongoing energy-saving activities are expected to lead to future improvement.
Category Unit 2022 2023 2024
Greenhouse Gas Emissions tCO₂eq 1,323.14 1,538.18 1,629.70
Direct Emissions tCO₂eq 170.67 178.75 183.15
Indirect Emissions tCO₂eq 1,152.47 1,359.43 1,446.55
Emission Intensity tCO₂eq / KRW 100 million 0.74198 0.54813 0.61871
Total Energy Consumption* TJ 26.58 29.86 31.72
Energy Intensity TJ / KRW 100 million 0.01491 0.01064 0.01204
Direct Energy Use TJ 2.50 2.37 2.51
LNG TJ 1.63 1.33 1.79
Diesel TJ 0.87 1.04 0.72
Indirect Energy Use TJ 24.08 27.49 29.25
Electricity TJ 24.08 27.49 29.25
Greenhouse Gas Reduction Activity Implementation Date Details Investment (KRW 100 million)
Automated Control System Installation 2024.09 Applied automatic control to electrical equipment 0.03
LED Replacement 2023.04 Replaced low-efficiency lamps with high-efficiency LEDs 0.05
HVAC System Improvement 2022.08 Upgraded HVAC equipment and outdoor units 0.06
Office Window Insulation 2024.02 Installed heat-insulating window film in office areas 0.05
System Air Conditioning/Heating Installation 2024.05 Replaced indoor and outdoor units
Next Plans
Energy analysis has shown that heating, cooling, and ventilation are the largest energy consumers.
To address this, PANASIA plans to identify improvement points through energy audits and strengthen
GHG monitoring via a GHG inventory and smart factory upgrades.

- Renewable Energy

Strategy
In February 2022, PANASIA joined K-RE100, Korea’s renewable energy initiative that allows companies to use and certify renewable electricity toward RE100 compliance.
Under the Green Premium Program, PANASIA purchases renewable electricity by paying a premium on existing power rates, as outlined in Regulations on Supporting New and Renewable Energy Facilities (MOTIE Notice No. 2022-175).
Through this program, PANASIA contributes to expanding renewable energy use and realizing green value.
Target
2050 Goal | Achieve Net Zero by 2050
Performance
PANASIA participates in the Green Premium Program to achieve its 2050 Net Zero goal, covering 15% of its total electricity consumption in 2024 through renewable energy purchases.
In addition, PANASIA installed and operates a 911 kW solar power system at its headquarters in 2014 and is constructing a 984 kW system at its third plant in 2024, actively utilizing idle spaces to promote the production and supply of eco-friendly energy.
Solar Power Generation Facility Status
Implementation Period Since 2014 (ongoing)
Total Project Cost KRW 4,026,000,000
Installation Location Plant 1 and Plant 3 Sites
Installation Area Approx. 10,040 m²
Capacity 1,895kW
Annual Average Power Generation Approx. 2,800,000 kWh
Next Plans
Global companies participating in RE100 are adopting various types of renewable energy to achieve their targets.
However, in Korea, renewable energy adoption remains limited, and available implementation options are fewer.
PANASIA plans to explore multiple approaches recommended under K-RE100, including expanding self-generation, Power Purchase Agreements (PPA), purchasing Renewable Energy Certificates (REC), and equity participation. Additionally,
PANASIA is constructing a solar power facility at its second plant, scheduled to begin operation in the second half of
2025. Moving forward, PANASIA will continue to align with global climate action efforts and work alongside its customers
to advance RE100 participation.

Eco-Friendly Products and Business Models

PANASIA has developed a range of eco-friendly business models based on its proprietary green technologies, applicable across multiple industries.
Key products include Carbon Capture and Storage systems (Pan-CCS™), ammonia and biogas hydrogen extractors, SOx/NOx reduction systems, and water treatment units.
Among these, PANASIA focuses on its Pan-CCS™ system, a technology that directly contributes to achieving carbon neutrality.

Pan-CCS™ (Carbon Capture and Storage System)

The Pan-CCS™ system isolates CO₂ emissions from major sources such as ships, power plants, steelworks, and cement factories.

Carbon Capture Diagram
  • ① Pre-treatment of Flue Gas The gas is cooled and cleaned of particles and SOx in a quenching tower, then compressed by an intake fan before entering the absorber.
  • ② CO₂ Absorption The cooled gas reacts with an amine-based solvent in the absorber, selectively capturing CO₂. High-performance packing and optimized internal design ensure efficient mass transfer.
  • ③ Regeneration The CO₂-rich solvent moves to the stripper tower, where heat from the reboiler releases CO₂. Water and CO₂ are separated, with CO₂ sent for liquefaction.
  • ④ Liquefaction & Storage The separated CO₂ is compressed, cooled, and liquefied for storage or utilization.

Worldwide, efforts toward carbon neutrality and greenhouse gas reduction are accelerating.
The International Maritime Organization (IMO) enforces regulations on Energy Efficiency Design Index (EEDI) and Carbon Intensity
Indicator (CII) for both new and existing ships, tightening emission standards throughout the vessel lifecycle.
In Korea, policies such as the GHG & Energy Target Management System (2011), Emissions Trading Scheme (2015), and 2050 Carbon
Neutral Declaration have strengthened environmental regulations.
In response, PANASIA developed an integrated Carbon Capture and Hydrogen Extraction Package Solution, becoming the first in
Korea to obtain AIP certification from the Korean Register (KR) in 2022.
PANASIA expects that widespread adoption of these technologies across marine sectors (shipping, shipbuilding) and land-based
industries (power generation, industrial plants) will significantly contribute to carbon neutrality and GHG reduction.

Marine Carbon Neutral Solutions

To help achieve IMO 2050 Net Zero, PANASIA provides technologies such
as CCS systems, hydrogen extractors, and ammonia/methanol fuel supply
systems for ships.

Onshore Carbon Neutral Solutions

To support Korea’s NDC goals, the EU Carbon Border Adjustment
Mechanism (CBAM), and global Net Zero initiatives, PANASIA supplies
technologies for green hydrogen production, offering not only equipment
but also engineering and EPC services.

PANASIA operates an intelligent, human-centered Smart Green Factory, integrating all production stages with ICT technologies to deliver customized, eco-friendly products efficiently. From product planning to design, manufacturing, and service, all processes are digitally connected, ensuring sustainable production and a safe working environment. Moreover, PANASIA enhances customer convenience through innovative solutions such as an Integrated Control System, E-Learning operation manuals, and remote maintenance platforms that extend product lifecycle support.

Level On-site Automation Factory Operation Resource Management Product Development Supply Chain Management
Advanced IoT/IoS-based CPS Internet-based business CPS network collaboration
IoT/IoS Implementation IoT/IoS-based diagnosis and operation using big data
Intermediate 2 Equipment control automation Real-time
process control		 Real-time factory management Simulation and process automation Multi-product development collaboration
Intermediate 1 Equipment data collection automation Real-time decision-making Automated technical data generation and collaboration Multi-product production collaboration Multi-product development collaboration
Basic Manual data collection automation Process flow management Technology and delivery management via servers Collaboration with single suppliers Single parent company dependence
No ICT Application Manual work Collaboration via phone and email
Smart Factory

A smart factory is a human-centered, intelligent production system that integrates every stage of manufacturing—from product planning to sales—through ICT (Information and Communication Technology).
It covers all manufacturing processes, from design and development to mass production, and includes both application systems and automation/control systems on the factory floor.
Smart factories are classified into five levels, from non-ICT to advanced integration. PANASIA currently operates at the advanced level and continues to enhance and innovate its production systems.

Smart PANASIA

Since 2015, PANASIA has been building and operating its smart factory in phases. Previously, the production of UV lamps—a key component in ballast water treatment systems—required manual processes such as glass molding and heat treatment. Now, the entire process is automated through smart manufacturing systems, resulting in significantly higher productivity and reduced defect rates, improving cost competitiveness. In 2020, PANASIA introduced IoT-based robotic systems for ship-level monitoring equipment, and by 2021, it had completed full implementation of MES (Manufacturing Execution System), WMS (Warehouse Management System), and APS (Automatic Production Scheduling) across all products and processes. As a result, PANASIA became the first company in Busan and the first in Korea’s marine equipment industry to achieve such recognition—earning the Smart Factory Award for Manufacturing Innovation (Energy Equipment Category).

Waste Management

Strategy
PANASIA monitors the entire waste management process—from generation and transport to final disposal—through an environmental compliance system.
The Facility Management Team oversees proper waste handling, maintaining detailed inspection logs and ensuring compliance with storage duration standards by waste type.
Target
Achieve zero incineration and landfill disposal of generated waste by 2030
Process
Based on the PDCA (Plan–Do–Check–Act) cycle of the ISO 14001 Environmental Management System, PANASIA has established a systematic waste management process.
The Facility Management Team supervises operations with participation from subcontractors and relevant departments. When selecting subcontractors, PANASIA prioritizes those with recycling technology and environmental permits.
Input ESG Team Contractor Output
P (Plan) Requirements Review and report expected waste Contract, report
Contract Contractor Selection Contractor compliance
monitoring results
D (Do) Waste slip Request waste treatment Transport and disposal Waste Treatment Confirmation
Generation Record and
Registration		 Weighing Report
C (Check) Issue occurrence Daily inspection of waste
A (Act) Review and report
improvement actions		 Improvement completion
report
Next Plans
PANASIA aims to achieve zero waste-to-landfill and incineration by 2030 by increasing the recycling rate of waste
generated at its sites. The company is also exploring recycling methods for previously non-recyclable waste such as used
mineral oils, continuously monitoring subcontractors’ disposal practices, and considering recyclability when purchasing
raw materials and consumables.