A shipowner’s perspective

 

By signing up to the SRTI, shipowners make a commitment to disclose their approach to ship recycling with their brand recognised for its leadership in sustainability as an SRTI signatory, associated with transparent and responsible ship recycling. Shipowners derive value from the SRTI by being part of a diverse community of like-minded transparent peers driving change across the industry, demonstrating how responsible ship recycling is possible, and providing evidence of a more transparent and accountable supply chain. They also benefit from a more level playing field.

Shipowners can draw on the SRTI data disclosed by peers as they learn about other shipowners’ approaches to ship recycling. SRTI data also provides a useful benchmark against which shipowners can monitor and report on their respective ship recycling and sustainability journeys.

“Hapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recycling.”

Anthony Firmin, COO, Hapag-Lloyd AG

 

“The China Navigation Company believes that if more stakeholders in the shipping value chain share their practices transparently then it will be clear what best practices are possible, and at what level of commitment, and thus how standards can be raised globally for the benefit of all.

James Woodrow, Managing Director, The China Navigation Company

 

“Taking the opportunity to join with the wider shipping industry to improve transparency in recycling methods was a no-brainer. The Ship Recycling Transparency Initiative will give all stakeholders the information required to know when and where best practices for safe and environmentally sound recycling are being used.”

Mark Martecchini, President, Stolt Tankers

A financier's perspective

 

Financial stakeholders including investors, lenders, ESG rating agencies and insurance companies have a powerful role in leveraging their influence to drive transparency and responsible ship recycling. Financial stakeholders use SRTI data to hold the shipping industry to account, raising the bar for current ship recycling practice as well as creating fair competition among shipowners.

The SRTI provides value to financial stakeholders who seek information on which to base their risk management strategies for investments, lending and risk coverage of shipowners, allowing them to meet the growing expectations of their stakeholders. Financial stakeholders can use SRTI data to develop incentives to drive responsible ship recycling practice through the market. A shared imperative and cooperation between shipowners and financial stakeholders, the SRTI is an opportunity to articulate and demand data of the quality and level of detail needed to make better financing decisions.

Environmental reporting framework CDP uses SRTI data in its recent report on the shipping sector. CDP uses ship recycling governance as a metric by assessing shipping companies’ commitment towards responsible ship recycling. CDP also credits companies who voluntarily engage in initiatives designed to improve industry-wide ship recycling practices such as the SRTI.

 

Investors are also wielding their influence by divesting from shipping companies whose vessels have been recycled using non-sustainable practices.

The Responsible Ship Recycling Standards (RSRS) launched in 2017 is another example of financial stakeholders driving change, with banks engaged in ship financing promoting responsible ship recycling. Banks’ position statements on ship recycling set out the conditions for the provision of financial services to clients engaged in ship recycling.

ESG trends to watch in 2020 could include the expansion of ESG ratings for the marine transport sector to include ship recycling in its risk analysis and the development of metrics related to issues such as human rights; toxic emissions and waste; health and safety; ecological impacts; accident and safety management.

 

 

 

“Standard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparency.”

Amit Puri, Global Head of Environmental and Social Risk Management, Standard Chartered Bank

 

“We believe that increased transparency around recycling practices of ship owners will be a key part of the solution – which will also require enforcement and cooperation between many stakeholders, including investors.”

Jens Munch Holst, CEO, MP Pension

 

“This initiative is helpful to any investor who wants insights to the very complex question of ship recycling. With key information on a company level this initiative will enable investors to better assess related risks and opportunities.”

Morten Therkildsen, Managing Director, Nykredit Asset Management

A shipper's perspective

 

Customers are increasingly demanding transparency across the entire supply chain. By signing up to the SRTI, cargo owners demonstrate their commitment by associating their brand with transparent and responsible ship recycling. The SRTI provides value to cargo owners who seek information on which to base their sourcing-related decisions, allowing them to meet the growing expectations of customers for a more transparent and accountable supply chain.

Cargo owners can use SRTI data to develop incentives and build these into existing supplier codes of conduct and sustainability strategies, for example setting specific ship recycling criteria to be met and demanding transparency as a minimum requirement in procurement processes. SRTI data helps them hold the shipping industry to account, raising the bar for current ship recycling practice as well as creating fair competition among shipowners.

The first carmaker globally to sign up to the SRTI, BMW believes multinational companies using ocean-borne logistics should take responsibility when it comes to ship recycling, seeing the SRTI as a great fit with its sustainability mission.

 

 

 

“The SRTI is the only global initiative that is looking at the entire lifecycle of the vessel, including what happens to the vessel when it’s no longer used. That transparency is helping to create guiding principles that will affect the entire industry: that’s why the SRTI is a front runner when it comes to sustainability.”

Stephan Reinhold, Sustainability Manager for Transport and Logistics, BMW Group

 

“Bunge is focused on building 21st century value chains that are transparent, verified sustainable and create positive impact on the ground. As a cargo owner, and as the first agribusiness company to join the SRTI, Bunge can provide valuable insight to shipping companies about our logistics and sustainability needs and expectations.”

Marcio Valentim Moura, Director of Global Logistics for Bunge

 

“LDC is pleased to sign up to the SRTI as a cargo owner, bringing our support to transparent and responsible ship recycling as part of our philosophy to build awareness and work collaboratively with shipowners and other SSI members toward a more sustainable shipping industry.”

Sebastien Landerretche, Head of the Freight Platform, Louis Dreyfus Company