Evergreen Marine Corporation (Taiwan) Ltd.

1.5 - Company logo
1.1 - Primary company name

Evergreen Marine Corporation (Taiwan) Ltd.

1.2 - Alternative company names

EMC

1.3 - Head office location

Taiwan

1.4 - Website

https://www.evergreen-marine.com/

1.6 - Number of ships operated

190

1.8 - Please provide a brief introduction to your company

Evergreen operates a modern fleet of around 190 container ships with a combined capacity of more than 1.2 million TEU and maintain services across a broad array of trade lanes around the world. The company operates in around 120 countries and employs roughly 6,800 people. Since its establishment, Evergreen has been a global brand which symbolizes innovative, reliable and sustainable marine transportation service, and continues with our mission to build efficient e-commerce platforms and to accelerate fleet renewal program, introducing ever more eco-friendly container ships.

1.9 - What is your overall approach / positioning on ship recycling?

In order to reduce the impact of vessels operations on the ocean’s ecology and the global environment in general, Evergreen Line has devoted itself to planning the complete life cycle of its vessels from design, construction, operation and ultimately to decommissioning. When a vessel is decommissioned and recycled, not only can valuable and reusable resources, such as steel be fully recycled, but the waste and pollutant which might be dangerous to human beings and environment must be processed properly. Evergreen demands that the buyers of its decommissioned vessels choose a “Green-Ship Recycling” shipyard which is certified by the internationally recognized Hong Kong Convention.

2.1 - Does the company have a written policy on ship recycling for its owned vessels?

Yes

2.1.1 - Is it publicly available?

Yes

2.1.2 - Please provide a URL

https://www.evergreen-line.com/tbi1/jsp/TBI1_Index.jsp

2.1.3 - Since when has this policy been applied?

2019

2.1.4 - How many ships does the policy apply to?

<25%

2.2 - Does the company keep records of ships which have been sent for recycling?

Yes

2.2.1 - Are the records public?

No

2.2.3 - Please provide further details

N/A

2.4 - Does the EU Ship Recycling Regulation apply to the company’s owned ships?

Yes

2.4.1 - How many ships does the regulation apply to?

<25%

2.5.1 - Please comment

We keep reviewing various topics of our policy.

2.6 - Does the policy contain restrictions based on geography and/or recycling methods?

Yes

2.6.1 - Please provide further details

For EU flagged vessel, it’s based on EU SRR (EU Ship Recycling Regulation) without geography restriction. For non-EU flagged vessel, our policy contains geography restriction to limit Hong Kong Convention certified green shipyard in India only.

2.7 - Does the company have a written policy for selecting a yard or buyer for recycling?

Yes

2.7.1 - Please provide further details including a URL if the policy is public

https://www.evergreen-marine.com/tbi1/csr/jsp/TBI1_Environment.jsp https://www.evergreen-line.com/tbi1/jsp/TBI1_Index.jsp

2.8 - Does the company make ship recycling part of the company’s sustainability goals?

Yes

2.9 - Does the company include ship recycling information in its sustainability reporting?

Yes

2.9.1 - Is this information verified by a third party?

No

2.9.2 - Please provide further details including a URL to the latest sustainability report

N/A

2.10 - Does the company have a ship recycling standard* (or similarly named) in force?

Yes

2.10.1 - From when has this been in force?

2019

3.1 - Does the company have a policy to promote responsible recycling of owned vessels sold for further trading?

No

3.1.1 - Please provide further details

N/A

3.2 - Does the company impose legally binding covenants or offer commercial incentives to the buyer to encourage responsible ship recycling?

Yes

3.2.1 - Please provide further details

Evergreen will send aged vessel only for demolition, not sale for further trading.

3.3 - Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over, released for redeployment or recycling?

Sometimes

3.3.1 - Please provide further details including number of vessels

From legal viewpoint, we don’t have right to interfere with the owners of chartered vessels about how to recycle their owned vessels. Even that, if any chance, we’ll still, from time to time, remind owners of our chartered vessels to do responsible recycling as much as practically possible.

3.4 - Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling?

Sometimes

3.4.1 - Please provide further details including number of vessels

From legal viewpoint, we don’t have right to interfere with the owners of chartered vessels about how to recycle their owned vessels. Even that, if any chance, we’ll still, from time to time, remind owners of our chartered vessels to do responsible recycling as much as practically possible.

3.5 - Does the company take steps to promote responsible recycling of vessels owned through JVs?

Sometimes

3.5.1 - Please provide further details

From legal viewpoint, we don’t have right to interfere with the owners of joint venture partners’ vessels about how to recycle their owned vessels. Even that, if any chance, we’ll still, from time to time, remind our JV partners to do responsible recycling as much as practically possible.

4.1 - Does the company follow a Standard Contract for the sale of vessels for green recycling (e.g. RECYCLECON from BIMCO)?

Sometimes

4.1.1 - If an industry standard contract template used, please specify

We are using our company’s proforma contract for ship recycling, which is more complete and stringent than any industrial standard contracts. It is noteworthy that Evergreen’s proforma contract contains a liquidated damage clause, which helps deter any ill-disposed buyer from doing anything violation on contract. In our bidding invitation, it explicitly stipulates that Evergreen’s proforma contract is a must and non-negotiable. Notwithstanding that, if it is found that recycling of any of the company’s vessels does not fully comply with the stated standards, Evergreen will take all necessary actions to safeguard its values of its green recycling policy.

4.2 - Does the contract include an explicit requirement to recycle the vessel at a specific ship recycling facility?

Always

4.2.1 - Please provide further details

Yes, in our proforma contract, it clearly requires the buyer to guarantee vessel being sold for purpose of demolition and recycling only at shipyard which is not only ISO certified (ISO 9000, 14001, 18001 or 30000), but also class approved 2009 Hong Kong Convention certified “Green-Ship Recycling” shipyard in India. In addition, the buyers shall provide to the seller with all relevant supporting evidence (such as, but not limited to, Statement of Compliance Certificate of the shipyard, photos of scrapping/supervision process…etc.), certifying vessel is physically and actually demolished in such shipyard.

4.4 - Does the contract require compliance with the company’s written policy on ship recycling?

Yes

4.5 - What protection is in place for the seller to ensure that milestones can be set, that access to the ship and monitoring can be maintained throughout the ship recycling process?

In our sale contract, we impose the Buyer strict guarantee obligation to conduct all safe and environmentally sound practices, on-site supervision, and follow-up audits throughout ship’s demolition/recycling process. The supervision/monitoring includes but not limited to spot check, ongoing supervision, on-site follow-up, Buyer’s representative on-site, health & safety, labor and human rights, anti-corruption, sub-contractors and/or downstream facilities for managing waste and hazardous materials. The designated supervision company has the contractual right to stop work at the facility, in case of unsafe operations or other non-compliances. The Buyer shall provide to us with supervision report on regular basis (at least, once per week), updating the Vessel’s demolition/recycling process. Last but not least, we have liquidated damage clause in sale contract, preventing any ill-disposed buyer from doing any violating act against contract.

5.1 - Does the company have a Ship Recycling Plan for each vessel?

Yes

5.2 - Does the company provide the buyer or ship recycler with a Class approved IHM, at the time of finalising the ship recycling contract?

Always

5.3 - Does the company provide all relevant ship certificates, plans, procedures and documents, to enable the yards to follow applicable ship recycling guidelines (and the relevant standards from question 2.2. that the company is aligned to)?

Always

5.4 - Does the company have specific requirements for handling hazardous materials as listed in The Stockholm Convention?

Yes

5.4.1 - Please provide further details

Following Hong Kong Convention.

6.1 - Does the company require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society?

Always

6.1.1 - Please provide further details

In our ship sale contract, it clearly stipulates that the Buyer shall provide to the Seller with supporting evidence (such as, but not limited to, Statement of Compliance Certificate of the shipyard, photos of scrapping process…etc.), certifying vessel is physically and actually demolished in such Hong Kong Convention certified “Green-Ship Recycling” shipyard.

6.2 - Does the company carry out additional audits to verify compliance prior to recycling?

Always

6.2.1 - Please provide further details

Prior to recycling, we’ll request Buyer to provide relevant supporting documents (e.g. Statement of Compliance Certificate of the shipyard) to verify the compliance.

6.3 - Does the company monitor yard compliance during the recycling process?

Always

6.3.1.1 - Please specify

We require Buyer to arrange one of Seller’s recognized supervision companies to conduct on-site supervision, and follow-up audits throughout ship’s demolition/recycling process.

6.3.2.1 - Please specify

It’s stipulated in our sale contract of the same as shown above.

6.4 - Does the company have the contractual right to stop work at the facility, in case of unsafe operations or other non-compliances?

Always

6.5 - Does the company require facilities to provide a process whereby yard workers can voice and resolve concerns and grievances regarding all workplace issues without fear of retribution?

Always

6.5.1 - Please provide further details

It’s stipulated in our sale contract of the same as shown above.

6.6 - Does the company require facilities to enable yard workers to associate and bargain collectively?

Always

6.6.1 - Please provide further details

It’s stipulated in our sale contract of the same as shown above.