drawing on our Natural Capital
One of the ways we do this is by renewing or expanding our fleet with next generation, modern ships designed and equipped to enhance efficiency. In 2014, we added seven modern ships to our fleet on the water, bringing the average age of our owned ships to eight years. 18 further ships are contracted to deliver into our owned fleet in the next two years – all efficient and of the best design for our trades.
We continued to apply our Right Speed Programme and other operational measures to minimise our ships’ fuel consumption and emissions.
Key Performance Indicators
Our fleet’s carbon emissions in 2014 increased 15% to 9.22 grams of CO2 per tonne-mile, as calculated using the new industry-standard ship Energy Efficiency Operational Indicator (EEOI) method. The increase was due to longer ballast voyages early in 2014 because of pronounced regional imbalances in the freight market.
Our average operating speeds – as optimised by our home-grown Right Speed Programme – were substantially unchanged compared to 2013. We continued to apply an array of 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 a number of new ships of efficient design.
Our target in 2015 is to continue to achieve an EEOI of less than 10.
We aim to do what we reasonably can through technical and operational measures to minimise our CO2 emissions in view of market pressures to increase ship operating speeds in a low fuel price environment.
Environmental Pollution Incidents
In 29,000 ship days in 2014, our owned fleet committed one marine pollution violation. The incident involved the discharge of bilge water while an oil content monitor was malfunctioning, which constitutes a violation of international regulations. We voluntarily disclosed the incident to and cooperated with the relevant authorities. The matter was resolved through appropriate corrective measures under our Pacific Basin Management System.
To always achieve no pollution incidents.
In 2014, we disclosed our carbon footprint data through:
- the new Carbon Footprint Repository (CFR) developed by Hong Kong’s Environment Bureau for listed companies in Hong Kong;
- the inaugural HKQAA Sustainability Assessment for Hang Seng Corporate Sustainability Indexes in which we achieved an “A” rating on a scale of AAA to D; and
- CDP (formerly the Carbon Disclosure Project).
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 are standard outputs in our industry.
|Ships in owned fleet (average)||ships||80||61||46||43|
|CO2 (Scope 1 emissions from our dry bulk fleet||metric tonnes||902,000||705,100||528,300||616,300|
|CO2 (Scope 2+3 emissions from headquarter activities*)||metric tonnes||1,293||1,269||1,260||n/a|
|Energy and Fuel Consumption|
|Heavy fuel oil (purchased)||metric tonnes||727,400||716,000||583,600||541,700|
|Low sulphur fuel oil (purchased)||metric tonnes||61,700||69,500||33,200||10,200|
|Marine gas oil & marine diesel (purchased)||metric tonnes||20,600||11,500||10,100||8,860|
|Garbage discharged to sea*||m3/month/ship||2.89||1.64||3.76||3.95|
|Engine room bilge water discharged to sea||m3/month/ship||7.97||8.71||10.10||9.42|
# Restated to a comparable basis
In addition to carbon-based fuel consumption, 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.
Underpinning the structure of our operations is the Pacific Basin Management System designed to measure and continually improve every aspect of fleet operations.
In 2014, we purchased more low sulphur marine gas oil instead of low sulphur fuel oil in anticipation of new emission regulations limiting fuel sulphur content to no more than 0.1% in designated emission control areas.
Enhanced engine maintenance and fewer leaks have resulted in reduced bilge water discharge, and availability of cleaner fuels led to reduced sludge incineration.
Reduced refrigeration machinery leakage resulted in significantly less release of Chlorofluorocarbons.
Our EEOI and other environmental and safety KPI data in this report has been measured or calculated in accordance with industry standards, and has been audited by Lloyd’s Register Quality Assurance for ISO9001, ISO14001 and OHSAS18001 certification.
Across our offices, we do what we reasonably can to minimise our footprint ashore by addressing environmental elements that are within our control.
Pacific Basin was again awarded a Silver Label from 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 58% of our shore-based staff work) produced carbon emissions of 1,293 metric tonnes for the 2013/2014 audit year.
In expanding our office space to accommodate more fleet management staff, we outfitted and equipped our new office space with environmental considerations in mind such as the use of energy efficient T5 lights and 30% fewer lights per unit area than we have used previously. As a result, our carbon intensity in 2014 reduced by 9% to 7.2 tonnes CO2 per employee.