Drawing on our Natural Capital

The primary environmental impacts of shipping are emissions and discharges. At sea and in port, these outputs are substantially all regulated and compliance is enforced across international, regional and local jurisdictions.

We recognise our responsibility to reduce the impact of our operations on air, sea and land, and our Pacific Basin Management System is designed to measure and continually improve every aspect of fleet operations, including our environmental outputs.

Our environmental philosophy is centred on our commitment to being a responsible company at the forefront of environmental efforts within the dry bulk shipping industry.

We have embedded across our global footprint at sea and ashore environmental programmes and initiatives that embrace environmental stewardship and, specifically, serve to reduce our atmospheric emissions, marine discharges and resource consumption. Broadly speaking, we achieve this by:

Adopting environmentally-friendly technologies and practices across our business

Pursuing environmental initiatives at sea and on land that meet or go beyond what is required of us by law and regulations

Promoting more modest practices even if they only bring relatively small benefits to the environment, as we believe group-wide and individual contributions make a difference

Tackling our Environmental Responsibilities

We take a holistic approach to reducing our operations’ impact on the atmosphere, sea and land. Our Pacific Basin Management System ashore and at sea conforms to the mandatory International Safety Management (ISM) Code and is also certified by Lloyd’s Register Quality Assurance (LRQA) to voluntary standards, including ISO 14001:2004 for our environmental management system. We track the effectiveness of our Environmental Management Systems using KPIs.

Environmental Responsibilities

We seek to minimise our impact on the environment from atmospheric emissions, resource consumption and marine discharges

through the adoption of energy-efficient and environmentally-friendly ship designs, technologies and practices at sea and ashore. The information below is a summary of significant initiatives we pursue to reduce our environmental impact.

Atmospheric Emissions & Fuel Efficiency

The main measures and technologies we use to minimise our emissions include:

Fuel-efficient Operational Measures

Improving Hull and Propulsion Hydrodynamics

Improving Engine Performance

CO2 Emissions Performance in 2016

Due to the above technological and operational measures and the overall efficiency of our large, modern fleet, our carbon intensity remains among the lowest in our segment.

Our aim is to maximise cargo carried per tonne of energy consumed.

Our fleet’s carbon emissions in 2016 increased 3% to 11.02 grams of CO2 per tonne-mile, as calculated using the industry-standard ship Energy Efficiency Operational Indicator (EEOI) method. The increase was due to our faster average operating speeds as optimised by our proprietary Right Speed Programme based on prevailing freight rates and fuel prices. The increase was positively partly offset by the increased efficiency of our fleet as our newbuilding programme delivers. We continued to apply technologies and practices that we implemented in earlier years to minimise our fuel consumption and emissions, and benefitted from the delivery into our fleet of new ships of efficient design.

In 2016, we added six modern ships to our fleet on the water, and the average age of our owned ships was 8.5 years as at 31 December 2016. Four more have delivered in early 2017 and three further ships remain contracted to deliver into our owned fleet by mid-2017 – all efficient and of the best design for our trades.

Marine Discharges & Waste Management

The main measures and technologies we use to minimise our marine discharge and waste include:

Reducing Marine Discharges

Waste Management

Garbage compactors on our ships facilitate easy storage of operational garbage (excluding food waste and cargo residues) until it can be disposed of responsibly on shore.

KPI A1.6
Handling of waste and reduction initiatives

Marine Discharge, Pollution and Waste Performance in 2016

We aim to not have any pollution incidents.

In 31,700 ship days in 2016, our owned fleet committed no marine pollution violations (2015: no pollution violations). This MARPOL performance is indicative of the effectiveness of our Pacific Basin Management System and the high standard of professionalism of our seafarers.

Green Efforts Ashore

Across our offices ashore, we do what we reasonably can to minimise our footprint by addressing environmental elements that are within our control.

Guidelines and communications are regularly posted and policies and practices are in place across our network of offices to:

Pacific Basin was awarded a Silver Label in the WWF’s Low-carbon Office Operation Programme that measures and tracks outputs and Energy Consumption from our headquarters in Hong Kong.

An independent audit of our environmental performance determined that our office in Hong Kong (where 59% of our shorebased staff work) produced carbon emissions of 1,067 metric tonnes for the 2015/2016 audit year (2014/15: 1,329).

Our Hong Kong headquarters’ carbon intensity in 2016 reduced 20% to 5.3 tonnes CO2 per employee due to a number of initiatives including:

Our Pacific Basin Management System ashore and at sea conforms to the mandatory International Safety Management (ISM) Code. It is also certified by Lloyd’s Register Quality Assurance (LRQA) to voluntary ISO 14001:2004 standards for our environmental management system.

We also disclose our carbon footprint data through:

  • the Carbon Footprint Repository (CFR) developed by Hong Kong’s Environment Bureau for listed companies in Hong Kong; and

  • the HKQAA Sustainability Rating and Research for the Hang Seng Corporate Sustainability Index Series.


My Annual Report

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