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:
Propelling a vessel across oceans requires many resources, the outputs of which impact the environment, as summarised on Our Key Impacts . 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 14001:2015 for our environmental management system. We track the effectiveness of our Environmental Management Systems using KPIs.
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.
The main measures and technologies we use to minimise our emissions include:
Our carbon intensity remains among the lowest in our segment due to the above technological and operational measures and the overall efficiency of our large, modern fleet.
Our aim is to maximise cargo carried per tonne of energy consumed.
Our fleet’s carbon emissions intensity in 2017 decreased 2% to 10.75 grams of CO2 per tonne-mile, as calculated using the industry-standard ship Energy Efficiency Operational Indicator (EEOI) method. Our ships operated at slightly faster average operating speeds in 2017 as optimised by our proprietary Right Speed Programme based on prevailing freight rates and fuel prices. The reduction in our carbon
intensity was therefore largely driven by the increased efficiency of our fleet as our last seven newbuildings and seven modern acquisitions delivered into our ownership. 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 and modern ships of efficient design.
In 2017, we added seven newbuilding and seven modern ships to our fleet on the water, and the average age of our owned ships was 8.5 years as at 31 December 2017. One more delivered in early 2018. All these acquisitions are efficient ships of excellent design for our trades.
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.
We aim to not have any pollution incidents.
In over 36,200 ship days in 2017, our owned fleet committed no marine pollution violations (2016: 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.
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:
In 2017, we discontinued the use in our Hong Kong office of plastic rubbish bin liners at our desks thereby eliminating the use of about 400 plastic liners per month, and we have encouraged our regional offices to do the same.
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 headquarters office in Hong Kong (where 60% of our shore-based staff work) produced carbon emissions of 1,135 metric tonnes for the 2016/2017 audit year (2015/16: 1,067). This represents an increase in emissions of 6.5% which was attributable to increased business travel (scope 3 emissions) partly offset by a marked reduction of 30% in our electricity consumption (scope 2 emissions).
Our increased business travel was mainly attributable to a return to our normal levels of air travel mainly because of our ship managers’ increased ship visits to our larger fleet of owned ships.
Our lower electricity consumption was due to our relocation in May 2017 to a modern, more efficient new office with lowenergy motion-activated lighting, fewer lights and more natural light, and more efficient air-conditioning.
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 14001:2015 standards for our environmental management system.
We also disclose our carbon footprint data through: