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Green is good for business, says global No. 1 offshore wind player, Korea’s beauty conglomerate
Sam Kimmins, head of the Climate Group’s RE100 campaign, speaks during the second session of Herald Corp.‘s first
But make no mistake. These members of Renewable Energy 100 -- a global
They’re doing this for their own good, Sam Kimmins, head of the Climate
“Why are companies doing this? (For) Ikea, Swiss Re and the other early joiners,
“But these are also business-savvy businesses. These are smart businesses.
Launched seven years ago, RE100 brings together the world’s most influential
More companies are joining RE100 as the movement is getting cheaper to
Despite improving market conditions, Korea has fallen behind the trend, with
Korea had better catch up, as lagging behind RE100 means losing valuable
“Large corporates such as Apple, Google and others are increasingly asking
Matthias Bausenwein, president of Orsted Asia Pacific, speaks on how green transition, though painful, can open new chapters for businesses. (Lee Sang-sub/The Herald Business)
The second session was also joined by Matthias Bausenwein, president of
Orsted Asia Pacific, who said while the global green transition may be painful
for conventional companies, it can open a new whole new chapter for growth.
Orsted has been ranked by Corporate Knights as the world’s most sustainable
energy company for three years in a row and stands as the No. 1 global
offshore wind power player. But there was a time when it faced difficulties for
sticking to the oil business.
“Only a decade ago, Orsted was a fossil-fueled utility established through a
merger in 2006. We were called DONG Energy, which stood for Danish oil and
natural gas. Our power and heat production mix in 2006 was dominated by
coal,” said Bausenwein, who has been spearheading Orsted projects in the
Asia-Pacific region for many years.
“Then in 2012, we got an intense financial pressure. Operating profits went
down and debt went up. It was because of rapid decline in earnings from gas
and coal-fired power plants due to drop in power prices.”
Compounded by losses on long-term gas sourcing contracts, liquefied natural
gas positions and gas storage, Orsted ditched eight business areas and
decided to concentrate on four including offshore wind, which then became
the company’s mainstay.
Since 2012, Orsted has relentlessly tried to bring down the cost of offshore
wind, eventually reaching 56 euros ($68) per megawatt-hour as of last year
from 167 euros. By 2030, Orsted is aiming to generate 30 gigawatts of clean
energy, which would be enough to supply renewable electricity to more than
55 million people.
Korea is one of the beneficiaries of Orsted’s ambitious plan. Orsted is currently
building a 1.6-gigawatt offshore wind farm 70 kilometers off the coast of
Incheon. Set for commercial operation as early as 2026, the project will be able
to power 1.3 million households per year. At the same time, the wind farm will
reduce almost 4 million metric tons of carbon dioxide emissions, which would
be equivalent to removing 1.8 million cars off the road.
Amorepacific has helped lead the eco-friendly movement in the beauty
industry, launching the first refill station at Amore Store Gwanggyo in Gyeonggi
Province. This year, Amorepacific joined RE100 as the first Korean beauty
On top of joining RE100, Amorepacific aims to make its packaging 100 percent
reusable, recyclable and compostable.
“Amorepacific will also transport its goods 100 percent with eco-friendly
vehicles by 2030,” said Oh, who leads the company’s climate strategy.
In any product lineup, raw materials account for 72 percent of a product’s
carbon emissions, according to Amorepacific’s lifecycle analysis. The
remaining 13 percent, 11 percent and 4 percent are generated when the
product is used, manufactured and thrown away, respectively.
Based on the analysis, Amorepacific changed raw materials, redesigned
containers and minimized the use of packaging. For example, Amorepacific
reduced the use of water by 10.6 percent when it manufactures containers for
its Laneige Water Sleeping Mask Ex skincare product. It also was able to cut
12.7 percent of greenhouse gas emissions when making containers for its
Osulloc Sejak Green Tea product.
Amorepacific was also able to reduce waste by 90 percent by extracting
healthy components from green tea byproducts and turning them into anti-
oxidant tablets called Meta Green that facilitate better metabolism.