Drawing on our Natural Capital
We recognise our responsibility to reduce the impact of
our operations on air, sea and land. One of the ways we do
this is by our efficient operation of modern ships designed
and equipped for efficiency. In 2015, we added six modern
ships to our fleet on the water, bringing the average age
of our owned ships to eight years. 13 further ships remain
contracted to deliver into our owned fleet in the next two
years – all efficient and of the best design for our trades.
We also make use of a number of technological and operational measures to minimise our ships’ fuel consumption and emissions.
Our fleet’s carbon emissions in 2015 increased 16% to
10.7 grams of CO2 per tonne-mile, as calculated using
the industry-standard ship Energy Efficiency Operational
Indicator (EEOI) method. The increase was primarily due
to lower fuel prices triggering a global increase in average
ship operating speeds especially in the third quarter.
Our average operating speeds continued to be optimised by our proprietary Right Speed Programme based on prevailing freight rates and fuel prices. 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 six new ships of efficient design.
Our aim in 2016 is to achieve an EEOI of less than 10.5, which will essentially seek to maximise cargo carried per tonne of energy consumed.
Environmental Pollution Incidents
In 30,500 ship days in 2015, our owned fleet committed no marine pollution violations. This performance is indicative of the pro-active culture of safety and quality on our ships, our Pacific Basin Management System which prescribes strict system controls and procedural safeguards to prevent fuel spillage, and the high standard of professionalism of our seafarers.
We aim to not have any no pollution incidents.
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 in which we achieved an “A” rating on a scale of AAA to D.
Additional Environmental Performance Indicators
The following environmental metrics quantify other material emissions, discharges and impacts from our operations. We have tracked these for several years and they represent normal, efficient operations.
|Emissions (owned fleet)|
|Ships in owned fleet (average)||ships||43||46||61||80||84|
|CO2 (Scope 1 emissions from our owned dry bulk fleet)||metric tonnes||616,300||528,300||705,100||902,000||1,043,000|
|CO2 (Scope 2+3 emissions from headquarter activities*)||metric tonnes||n/a||1,260||1,269||1,293||1,329|
|Fuel Purchased (owned & chartered fleet)|
|Heavy fuel oil||metric tonnes||541,700||583,600||716,000||727,400||749,700|
|Low sulphur fuel oil||metric tonnes||10,200||33,200||69,500||61,700||0|
|Low sulphur marine gas oil (& diesel prior to 2015)||metric tonnes||8,860||10,100||11,500||20,600||69,200|
|Garbage discharged to sea (foodwaste + cargo residue)||m3/month/ship||3.95||3.76||1.64||1.58||1.18|
|Engine room bilge water discharged to sea||m3/month/ship||9.42||10.10||8.71||7.97||8.44|
|* Emissions from our headquarter office consumption and activities includes emissions from staff commuting and business air travel, air conditioning, lighting and computer and office equipment, as well as paper and fresh water consumption (audit period: July 2014 to June 2015)|
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. Our Pacific Basin Management System
is designed to measure and continually improve every
aspect of fleet operations, including these outputs.
In 2015, we purchased significantly more low sulphur marine gas oil (and no low sulphur fuel oil or marine diesel oil) in order to meet new emission regulations limiting fuel sulphur content to no more than 0.1% in designated emission control areas where our ships frequently trade.
The availability of cleaner fuels led to reduced sludge incineration. We have further reduced our total garbage generation by requesting our suppliers deliver goods with less packaging coupled with a long-standing programme of compaction on board prior to landing ashore.
Reduced refrigeration machinery leakage resulted in less release of Chlorofluorocarbons.
Across our offices, we do what we reasonably can to
minimise our footprint by addressing environmental
elements that are within our control.
Pacific Basin was awarded a Gold Label (2014: Silver) 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 60% of our shore-based staff work) produced carbon emissions of 1,329 metric tonnes for the 2014/2015 audit year.
Our Hong Kong headquarters’ carbon intensity in 2015 reduced to 6.6 tonnes CO2 per employee.
Environmental Awareness Ashore
In September, Pacific Basin funded an educational boat tour for staff called “Plastics in the Ocean: Become Part of the Solution”. Organised by the Hong Kong Maritime Museum and Ocean Recovery Alliance, the tour informed participants about marine litter, how microplastics enter the food chain and the impact on the local and global ecosystem. Hands-on activities included visual surveys, water samplings and an opportunity to learn more about Hong Kong’s aquatic issues and positive trends.