We clearly acknowledge the impact our operations may have on the marine environment. To support the decarbonization strategy of the shipping industry, we proactively research and develop low-carbon and zero-carbon ship fuels, while promoting technological and management innovation to reduce greenhouse gas emissions, so as to preserve marine biodiversity and live in harmony with nature.
l Improving environmental organizational structure and the management procedures to ensure effective operation of the environmental management system
l Identifying climate risks and opportunities, advancing research on low-carbon ship fuels, and investing in LNG dual-fuel ships
l Reducing emissions to protect the marine biodiversity
Environmental Management System
We strictly comply with laws, regulations, and conventions of international, national and industry level, such as the Marine Environment Protection Law of the People's Republic of China and the Regulation on the Prevention and Control of Vessel-induced Pollution to the Marine Environment by the State Council of China, the International Convention for the Prevention of Pollution from Ships (MARPOL) by International Maritime Organization (IMO). We also abide by applicable rules, guidelines, and standards recommended by competent authorities, classification societies, as well as industry organizations recognized by the Company. At the same time, we established and continuously improve the environmental management system to minimize the environmental impact of our operations.
Address Climate Change
Addressing climate change has become the global and industrial consensus. In 2018, the Initial IMO Strategy on Reduction of GHG Emissions from Ships was adopted. As a responsible shipping company, we have been actively collaborating with various entities to conduct research on zero-carbon fuel and investing in LNG dual-fuel ships to mitigate GHG emissions resulting from navigation, while simultaneously striving for the continued reduction of carbon emissions from existing ships. Additionally, the Company is focusing on the emerging development opportunities in responding to climate change, such as laying out LNG transportation and researching the transportation of liquid carbon dioxide.
Ever since we were listed as one of the Shanghai carbon emission quotation management entities in 2020, we have been resolutely reinforcing our compliance oversight of carbon quota trading.
Climate Change: Risks and Opportunities
Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we focus on the key factors affecting climate change in the shipping industry to identify climate change-related risks and opportunities and their potential financial impact in the short, medium and long run; and ultimately, to enhance our adaptability to uncertain climatic conditions.
*Note: According to the recommendations of the TCFD, the Company refers to the scenario analysis published by the International Energy Agency (IEA), Intergovernmental Panel on Climate Change (IPCC) and other institutions, and focuses on the above key factors to qualitatively analyze the climate change-related risks and opportunities faced of COSCO SHPPING Energy. In line with the IPCC scenarios RCP2.6, RCP4.5, RCP6.0 and RCP8.5, as well as the TCFD framework recommendations, we define the "high-emission scenario" as a global average temperature increase above 4°C by 2050 and the "low-emission scenario" as an increase below 2°C.
Development of Green Ships
————————————————————————————————————The utilization of cost-effective and safe low-carbon fuels is the key to energy saving and emission reduction in the shipping industry. We are closely tracking the technological advancements in this area while also conducting green ship research, including the calorific value research of ship power sources and assessing the feasibility of substituting conventional fuel oil.
Energy Use and Carbon Emissions
We are committed to the energy efficiency policy of "cherish energy, use rationally, and develop harmoniously". We meticulously comply with international conventions, laws, regulations, standards and other requirements related to ship energy management, we also established effective mecha- nisms to enhance the energy efficiency of our ship operations, to track and analyze our ships' energy consumption, aiming to improve ship energy efficiency.
Carbon reduction targets in line with IMO
Protect Marine Ecology
Covering 71% of the earth's surface and containing 97% of its water, the oceans are essential for human survival and development. We recognize that protecting marine ecology is of great importance to sustainable development. As a leader in global energy transportation and practitioner of sustainable development, we spare no effort to protect the marine ecology and give more we plan to.
Protection of Marine Biodiversity
We recognize and value the critical role of marine biodiversity in our oceans and broader ecological systems. As a global energy transportation leader, we are committed to protect biodiversity both on land and in our shipping routes.
We have implemented a waste management system in compliance with the MARPOL 73/78 to minimize marine emissions. This system involves strict management of waste gas, waste water, and solid waste to ensure they are disposed of in a safe and responsible manner.
Extend Green Footprint
We have implemented a company-wide initiative to promote energy saving and carbon reduction. The Instruction for Energy Conservation Management in Office Buildings have clearly defined objectives and initiatives to ensure efficient resource utilization.
The Biodiversity Conservation Statement
We are well aware that biodiversity is the condition for human survival and the basis of sustainable economic and social development. Achieving sustainable development through green transformation has become a global consensus and a concerted action of the shipping industry. COSCO SHIPPING Energy Transportation Co.,Ltd. (“COSCO SHIPPING Energy”, or “the Company”) is committed to structuring a cleaner and more resilient business ecosystem. We have formulated a medium and long-term environmental management plan, striving to achieve the environmental goals of "zero pollution, high energy efficiency and low emission", and minimize the environmental impact of ships on the marine, atmosphere, and land.
We understand and value the significant impact of biodiversity on the marine and global ecosystems, and recognize that COSCO SHIPPING Energy, as an important force in global energy transportation, is duty-bound in protecting marine biodiversity. We support and implement the Kunming-Montreal Global Biodiversity Framework, and will protect biodiversity on land and along the routes of the ship.
Biodiversity commitment and objectives
COSCO SHIPPING Energy undertakes to avoid operation activities near global or national ecological protection areas with important biodiversity significance, maintain navigation distance while operating near key biodiversity protection areas to avoid negative effects, require subsidiaries to follow this principle and encourage our suppliers to perform with reference.
Strictly abide by the international, domestic and industry-related policies and regulations
To ensure that the navigation is legal and compliant, we abide by Marine Environment Protection Law of the People's Republic of China and other laws and regulations, and International Convention for the Control and Management of Ships’ Ballast Water and Sediments, International Convention on the Control of Harmful Anti-fouling Systems on Ships, Regulations of the People's Republic of China on the prevention of vessel-induced sea pollution and other convention and industry regulations. We also strengthen the research of environmental protection laws of the coastal countries and environmental management requirements of port supervision authorities.
Identify the biodiversity risk exposure and assess it
We identify the environmental factors and risks that may have adverse effects on marine biodiversity during the production process. Irreversible hazardous to the sea can be caused by ship ballast water, oily water, navigation noise, oil spill events, leakage of toxic and hazardous substances, discharge of sewage and garbage, emission of air pollutants and scrapped disposal of ships. The company evaluates and controls the identified risk factors, and carries out targeted special management, including but not limited to Ballast Water Management Plan, Garbage Management Plan, Bio-fouling Management Plan, Oil Pollution Emergency Plan, etc.
Manage ship’s ballast water strictly
Ballast water may contain alien species and pathogens, which must be treated before it is discharged into the sea, otherwise the invasion of alien species may have a negative impact on marine biodiversity, ecology and fishery. The company comprehensively standardizes the ballast water treatment of the fleet through the Ship Environmental Aspect Control , Ballast Water Management Plan, Oil Tanker Ballast Water Operation and other management systems.
Plan routes reasonably and assess the impact of biodiversity
In the process of designing ship operation routes, we comprehensively consider the factors such as navigation safety of ships, navigation distance, cargo quantity, port location, shipping technology, etc. We understand the seasonal migration characteristics of marine life, avoid navigation in the habitat and breeding areas, as well as the noise and other pollution effects on marine life. If there are Particularly Sensitive Sea Areas (PSSA) in the ship route, we shall keep a distance from these areas specified by the coastal states to avoid negative impacts.
Strengthen the controlling of oil spill incidents
We place a high premium on the prevention and control of accidental marine environmental pollution such as oil spills. The Company formulates the Contingency Plan for Oil Spill and Environmental Pollution , and strengthens safety training and drills for crew members. Additionally, pre-loading and pre-discharging inspections and owner’s self-inspection should be strictly carried out, and similar accident analysis and self-inspection should be carried out with the case as a guide to minimize oil spill incidents.
Reduce atmospheric and marine emissions
We focus on the development of new energy powered ships to reduce greenhouse gas emissions by using alternative fuels with low or zero emissions. At the same time, we will promote the use of low-sulfur fuel and the improvement of hull paint grades to reduce atmospheric and marine emissions.
Raise awareness of biodiversity conservation
In accordance with the requirements of various initiatives such as week-long national campaign and National Low-carbon Day to promote energy conservation, we carry out variety of propaganda events to enhance crew’s and employees' awareness of biodiversity conservation.
Forest conservation commitment
As a shipping company, our main business operates in the ocean, and our shore-based business activities do not involve a direct impact on the forests. However, we still promise to strictly abide by the laws and regulations related to forest resource protection in the operations of company, including shore-based operations and ship activities, strictly prohibit the indiscriminate cutting of trees, and advocate afforestation. In addition, we require our subsidiaries to strictly fulfill this commitment, and encourage suppliers to reduce deforestation and take reasonable measures to protect or restore the forest ecosystem.