How data reporting is€¦ · FINANCE AS A DRIVER FOR CHANGE • Moving from “do no harm” to...
41
How data reporting is transforming ship recycling 15 September 2020 • 09:00-09:45 BST Presentation & sponsor documents: Page 2: Andrew Stephens, SSI Page 9: Dr. Anand M. Hiremath, GMS DMCC Dubai Page 23: Henning Gramann, GSR Services Page 32: SSI company information Part of Ship Recycling Webinar Week In association with Sponsored by
How data reporting is€¦ · FINANCE AS A DRIVER FOR CHANGE • Moving from “do no harm” to “do more good” • Demand for transparency and disclosure • Financial materiality
Presentation amp sponsor documentsPage 2 Andrew Stephens SSIPage 9 Dr Anand M Hiremath GMS DMCC Dubai Page 23 Henning Gramann GSR ServicesPage 32 SSI company information
Part ofShip Recycling Webinar Week
In association with
Sponsored by
Using transparency to drive progress on responsible ship recyclingSummary of the Initiative and how to get involvedUsing transparency to drive progress on responsible ship recycling
2
Andrew StephensExecutive DirectorShip Recycling Transparency Initiative
WHO IS INVOLVED
SRTI STEERING GROUP
Shipowners
Financial stakeholders
Classification societies amp other stakeholders
An independent initiative hosted by the Sustainable Shipping Initiative the SRTI reflects a collective effort that brings together the shipping industry investors cargo owners and broader stakeholders to improve ship recycling policy practice and performance
The SRTI is an open initiative and we invite you to join the growing SRTI community
OTHER SIGNATORIES
Shipowners
Cargo owners
Financial stakeholders
Classification societies amp other stakeholders
3
Ship Recycling Transparency Initiative (SRTI)
26 signatories 11 disclosing shipowners
VISION
MISSION
OBJECTIVES
bull Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash meeting and going beyond international conventions and norms
bull The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency and subsequently to influence and improve decision-making about ship recycling creating an industry-wide level playing field
bull Improve transparency across the shipping value chainbull Increase disclosure of ship recycling policies and practicesbull enable and encourage cargo owners financial stakeholders and others to make
informed decisions that will in turn drive improved performancebull Create a level playing field for shipowners covering the lifespan of a ship
4
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Using transparency to drive progress on responsible ship recyclingSummary of the Initiative and how to get involvedUsing transparency to drive progress on responsible ship recycling
2
Andrew StephensExecutive DirectorShip Recycling Transparency Initiative
WHO IS INVOLVED
SRTI STEERING GROUP
Shipowners
Financial stakeholders
Classification societies amp other stakeholders
An independent initiative hosted by the Sustainable Shipping Initiative the SRTI reflects a collective effort that brings together the shipping industry investors cargo owners and broader stakeholders to improve ship recycling policy practice and performance
The SRTI is an open initiative and we invite you to join the growing SRTI community
OTHER SIGNATORIES
Shipowners
Cargo owners
Financial stakeholders
Classification societies amp other stakeholders
3
Ship Recycling Transparency Initiative (SRTI)
26 signatories 11 disclosing shipowners
VISION
MISSION
OBJECTIVES
bull Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash meeting and going beyond international conventions and norms
bull The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency and subsequently to influence and improve decision-making about ship recycling creating an industry-wide level playing field
bull Improve transparency across the shipping value chainbull Increase disclosure of ship recycling policies and practicesbull enable and encourage cargo owners financial stakeholders and others to make
informed decisions that will in turn drive improved performancebull Create a level playing field for shipowners covering the lifespan of a ship
4
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
2
Andrew StephensExecutive DirectorShip Recycling Transparency Initiative
WHO IS INVOLVED
SRTI STEERING GROUP
Shipowners
Financial stakeholders
Classification societies amp other stakeholders
An independent initiative hosted by the Sustainable Shipping Initiative the SRTI reflects a collective effort that brings together the shipping industry investors cargo owners and broader stakeholders to improve ship recycling policy practice and performance
The SRTI is an open initiative and we invite you to join the growing SRTI community
OTHER SIGNATORIES
Shipowners
Cargo owners
Financial stakeholders
Classification societies amp other stakeholders
3
Ship Recycling Transparency Initiative (SRTI)
26 signatories 11 disclosing shipowners
VISION
MISSION
OBJECTIVES
bull Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash meeting and going beyond international conventions and norms
bull The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency and subsequently to influence and improve decision-making about ship recycling creating an industry-wide level playing field
bull Improve transparency across the shipping value chainbull Increase disclosure of ship recycling policies and practicesbull enable and encourage cargo owners financial stakeholders and others to make
informed decisions that will in turn drive improved performancebull Create a level playing field for shipowners covering the lifespan of a ship
4
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
WHO IS INVOLVED
SRTI STEERING GROUP
Shipowners
Financial stakeholders
Classification societies amp other stakeholders
An independent initiative hosted by the Sustainable Shipping Initiative the SRTI reflects a collective effort that brings together the shipping industry investors cargo owners and broader stakeholders to improve ship recycling policy practice and performance
The SRTI is an open initiative and we invite you to join the growing SRTI community
OTHER SIGNATORIES
Shipowners
Cargo owners
Financial stakeholders
Classification societies amp other stakeholders
3
Ship Recycling Transparency Initiative (SRTI)
26 signatories 11 disclosing shipowners
VISION
MISSION
OBJECTIVES
bull Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash meeting and going beyond international conventions and norms
bull The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency and subsequently to influence and improve decision-making about ship recycling creating an industry-wide level playing field
bull Improve transparency across the shipping value chainbull Increase disclosure of ship recycling policies and practicesbull enable and encourage cargo owners financial stakeholders and others to make
informed decisions that will in turn drive improved performancebull Create a level playing field for shipowners covering the lifespan of a ship
4
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
VISION
MISSION
OBJECTIVES
bull Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash meeting and going beyond international conventions and norms
bull The SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency and subsequently to influence and improve decision-making about ship recycling creating an industry-wide level playing field
bull Improve transparency across the shipping value chainbull Increase disclosure of ship recycling policies and practicesbull enable and encourage cargo owners financial stakeholders and others to make
informed decisions that will in turn drive improved performancebull Create a level playing field for shipowners covering the lifespan of a ship
4
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
5
FINANCE AS A DRIVER FOR
CHANGE
bull Moving from ldquodo no harmrdquo to ldquodo more goodrdquo
bull Demand for transparency and disclosure
bull Financial materiality of ship recycling
bull Key role to play as data users
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
6
THE SHIP LIFECYCLE
bull Ship recycling is not just the last ownerrsquos responsibility
bull Traceability and transparency throughout the ship lifecycle are key
bull IHM will play a key role in showing what can be done
Image credit IHRB Rafto Foundation DIHR
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
THANK YOU
7
Tweet usSustShippingshiprecyclingtransparency
Sign up to the SRTIbull wwwshiprecyclingtransparencyorgbull srtissi2040org
Thank you for joining
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
wwwgmsincnet
Webinar How Data Reporting is Transforming Ship RecyclingTuesday | September 15 2020
Prepared By Dr Anand M HiremathHead Research amp DevelopmentLead Coordinator Responsible Ship Recycling
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 2
Statement of Compliance (SOC) with Hong Kong Convention (HKC) in Alang
IRCLASS86
HKC-SOCyards
35
69
04
09
ClassNK
Sr Particulars Details
1 Total registered ship recycling yards 153
2 Total operational yards 120
3 Total HKC-SOC certified yards 86
4 Total SOC issued (including multiple certifications) 117
5 HKC-SOC (Green) yards in Alang 72
6 No of yards currently working towards SOC with HKC 10+
8 Annual ship recycling capacity (no of ships) asymp 500
9 European Union Ship Recycling Regulation (Audited yards) 5
10 Total yards in Alang applied for EU-List 20
RINA
Lloydrsquos Register
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 3
HKC-SOC Process
INFRASTRUCTURE Human Resource Development
Management System (SRFP SRP IHM)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 4
SOC with HKC Yard
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 5
Heavy Lift Cranes in Various Yards
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 6
Land Water Interface
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 7
Oily Water and Storm Water Collection System
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 8
Adequate PPE for Workers
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 9
Labour Residential Colony by Gujarat Maritime Board
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 10
Sustainable Ship Recycling - India
86
50
70
170
HKC Yardsof all green vessels are delivered by GMS
of ships sold to HKC yards
increase in sustainable recycling sales
Role of Compliance Monitoring Team and
Transparency in Data Sharing
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 11
Experience Supervised Recycling of 80 ships so far with Zero fatal accidents
Recognized Only award winning programme
Reliable Leading Bluechip shipowners such as Evergreen approved our recycling supervisionservice
Knowledge Published Industries first green handbook A practical checklist to monitor safe andenvironmentally friendly recycling
Leadership Conducted over 100 safety awareness training programs to workers at Alang andChittagong at NO cost to yard owners
GMS RSRP is rapidly growing service today because ofhellip
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 12
RSRP - A Brief Overview
GREEN MONITORING
Surprise Inspections amp Key Performance Indicators at Yard
Vessel Recycling Completion Report
Carbon Foot Printing (from beaching to complete recycling)
Monitoring Each Work Activity and Job Tasks
Precautionary Measures Prior to Beaching
Preliminary Observations at the Yard
Status ampValidity Check of Certificates Permissions Authorization Documents at yard
Employee Interview Questionnaire
Checklist to Analyse the Commitment of Yard Management towards Workers Right amp Safety
as per HKC EUSRR ILO
HSE Formats and Records Expected at the Yard
GMS RSRP Specific HSE Register Formats
Ship Recycling Plan [MEPC 196 (62)]
Inventory of Hazardous Materials (IHM) [MEPC 269 (68)
Education and Training Plan for Workers as per GMS RSRP
Environmental Monitoring and Assessment
Ship Recycling Facility Plan MEPC 210 (63)
PPEs Available at the Yard
3-Step Risk Assessment
Phase - A (Prior to Beaching)
Phase - B (After Beaching)
Total 281 data points are collected in the recycling monitoring process
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 13
RSRP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials (IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling
5 Ensuring effective implementation of SRP
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS RSRP
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
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Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Webinar How Data Reporting is Transforming Ship Recyclingwwwgmsincnet 14
GMS_Leadership
THANK YOU SO MUCH
wwwgmsincnetGMS IncGMS Inc
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
For your competitive sustainability
How data reporting is transforming ship recycling
The role of Inventory of Hazardous Materials
copy 2020 by GSR Services copying or utilization of contents without prior written confirmation form GSR Services GmbH prohibited
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Solutions for compliance with HKC and EU-SRR for the maritime industry
GSR Services
HKC and EU-SRR
Recycling PreparationsIHM Part II amp III Last Voyage Planning SRP-Support
SRF-Upgrading amp Compliance
Supervision Advise amp Reporting
Due Diligence Audits
Project Planning amp Tendering
Strategy Development
Maritime Recycling(end of life)
Asbestos amp HazMat Management
Supply Chain Compliance DataIHM Maintenance
IHM Development Pre-Delivery Docking amp Purchase Surveys
Material Compliance(cradle to grave)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
bull Backgroundbull Data reporting from cradle to gravebull What greater scrutiny on supply chain practices
means for ship recyclingbull Trial and error
bull whatrsquos working bull what isnrsquot bull whatrsquos next
Content
2020-09-15 Data Reporting and Transparency
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
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1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
bull IMO Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (HKC)
bull Europe EU Ship Recycling Regulation (EU-SRR)
bull Applicable tobull All merchant ships gt 500GTbull Ship recycling facilities (SRF) for above
2020-09-15 Data Reporting and Transparencyship means a vessel of any type whatsoever operating or having operated in the marine environment and includes submersibles floating craft floating platforms self-elevating platforms Floating Storage Units (FSUs) and Floating Production Storage and Offloading Units (FPSOs) as well as a vessel stripped of equipment or being towed
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
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Slide Number 11
Slide Number 12
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Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
bull Inventory of Hazardous Materials (IHM)bull Essential for ensuring safety and environmental protection throughout shipsacute life and endbull No false data = risks
bull Development of IHM ndash Part Ibull New ships by shipyard - via data from suppliersbull Existing ships by owner - via ldquoIHM-Expertrdquo
bull IHM-Maintenance bull By shipowner - via data from suppliers
bull Control by flag state classification societybull To be utilized (incl IHM Part II amp Part III for recycling planning
Data Reporting form Cradle to Grave
2020-09-15 Data Reporting and Transparency
IHM Maintenance
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
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Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
bull New ship IHMs amp IHM Maintenance to bebased on forms from suppliers
bull Suppliers Declaration of Conformity (SDoC)bull Specification of requirements amp overtaking responsibility for MD
bull Material Declaration (MD)bull Specification of HazMats in products
bull Yards owners and Tier 1-suppliers dependon information from their suppliers
bull Data is not systematically available (yet)bull Demand increases sharply
Role of Suppliers
2020-09-15 Data Reporting and Transparency
Sampling and inspection as like for existing ships is legally not compliant
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
Scrutiny for Suppliers and Owners
bull Incompliant IHMs (no IHM not certified not reflecting ship not maintainedhellip)
bull France 100k EUR or 1-year imprisonment(Article L5242-9-2 Code des Transports)
bull UK financial penalty and 2 years imprisonment(Reg 11 of Ship Recycling Regulation 2018)
bull Incompliant MDs (SUPPLIERS)bull Acting (un)intentionally against REACH
bull not or incorrectly or incomplete or belated provision of information
penalty of up to 50000- EUROeffort to obtain information may lead to reductions
1) SDoC ID No
2)
3) 1)2)3)4)5)6)7)8)9)10)
4)
5) Edition
2015
2009
2010
2013
2016
6)
MEPC Res 269(68)
(Place of issue)
Title
SUPPLIERS DECLARATION OF CONFORMITYfor Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
Object(s) of the
Issuers name
Issuers adress
Date of issue
The object of declaration described above is in conformity with the requirement of the following documents
SR CONF 45 International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
ISO 30005
SD-MMYYYY-AbrSuppl-ongoingNo
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
related to REGULATION (EU) No 12572013
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
Document No Date of
Signed for and on behalf of
Additional Information
Guidelines for the Development of Inventory of Hazardous Materials
2020-09-15 Data Reporting and Transparency Reg(EG) No 19072006 () Art 33
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
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Slide Number 4
Slide Number 5
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Slide Number 7
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Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
SDoC_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
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Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
SUPPLIERS DECLARATION OF CONFORMITY
for Material Declaration Management
(according to IMO Resolution MEPC269(68) and EU Ship Recycling Regulation)
1)
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
2)
Issuers name
Issuers adress
3)
Object(s) of the declaration
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
4)
The object of declaration described above is in conformity with the requirement of the following documents
5)
Document No
Title
Edition
Date of issue
MEPC Res 269(68)
Guidelines for the Development of Inventory of Hazardous Materials
2015
SR CONF 45
International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships
2009
ISO 30005
Ships and marine technology mdash Ship recycling management systems mdash Information control for hazardous materials in the manufacturing chain of shipbuilding and ship operations
2010
REGULATION (EU) No 12572013
Regulation of the European Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No 10132006 and Directive 200916EC
2013
related to REGULATION (EU) No 12572013
EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials
2016
6)
Additional Information
Signed for and on behalf of
(Place of issue)
Date of issue
7)
(Name function)
(Signature)
MD_001
ampLForm prepared by GSR Services (wwwgsr-servicescom)ampCpage ampPampRampD
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
MATERIAL DECLARATION
Type 1 SELF DECLARATION
ltDate of declarationgt
ltSupplier (Respondent) Informationgt
Date
Company name
Division name
ltMD ID Numbergt
Address
MD-ID-No
Contact person
Telephone No
ltOther information (eg client shipbuilder hull NO if appliccablegt
Fax No
Remarks
E-mail adress
SDoC ID No
SD-MMYYYY-AbrSuppl-ongoingNo
ltProduct Informationgt
Product Name
Product Number
Delivered Unit
Product Information
Amount
Unit
Unit
This material information shows the amount of hazardous materials contained in
1
ltMaterial Informationgt
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Asbestos
Asbestos
01
No
0
Table A
PCBs
Polychlorinated Biphenyls (PCBs)
50 mgkg
No
0
Ozone depleting substances
Chlorofluorcarbons (CFCs)
No threshold level
No
0
Materials
Halons
No
0
listed in
Other fully Halogenated CFCs
No
0
appendix 1
Carbon Tetrachloride
No
0
of the
111-Trichloroethane
No
0
Convention
Hydrochlorofluorcarbons
No
0
Hydrobromofluorcarbons
No
0
Methyl Bromide
No
0
Bromochloromethane
No
0
Anti-fouling systems containing organotin compounds as a biocide
2500 mg total tinkg
No
EU
Perfluorooctane sulfonic acid (PFOS)
10 mgkg
No
0
Table
Material Name
Threshold level
Present above
IF YES
IF YES
threshold level
Material Mass
Information
Yes or No
Amount
Unit
on where it is used
Cadmium amp Cadmium Compounds
100 mgkg
No
0
Table B
Hexavalent Chromium and Hexavalent Chromium Compounds
1000 mgkg
No
0
Lead and Lead Compounds
1000 mgkg
No
0
Materials
Mercury and Mercury Compounds
1000 mgkg
No
0
listed in
Polybromated Biphenyl (PBBs)
50 mgkg
No
0
appendix 2
Polybrominated Dephenyl Ethers (PBDEs)
1000 mgkg
No
0
of the
Polychloronaphtalenes (Clgt=3)
50 mgkg
No
0
Convention
Radioactive substances
No thrlevel
No
0
Certain Shortchain Chlorinated Paraffins
1
No
0
EU
Brominated flame retardants (HBCDD)
100 mgKg
No
0
01 in principle if 1 is applied it should be recorded in Remarks section 50ppm is to be used as threshold for reporting existing PCB only NOTE All new materials are to be free of any PCBs Additional material to be listed acc to Annex 1 and Annex 2 of the 2013 EU Ship Recycling Regulation
The object of declaration described above is in conformity with the IMO Guidelines for the development of Inventory of Hazardous Materials Resolution MEPC269(68) (and for EU-Ships EMSArsquos Best Practice Guidance on the Inventory of Hazardous Materials)
Important Notice The content and specifications of this form may not be changed or amended Any changes or amendments by others than the author of this form constitute a breach of copyright law
DD MM YYYY
(Date)
(Signature and Company Stamp)
IMPORTANT NOTICE Any significant change in material content may render this declaration invalid
Yes
No
piece
kg
m
m2
m2
m3
m3
kg
bull Whatrsquos workingbull not much and if than often inefficiently
bull What isnrsquot workingbull Understanding and applicationbull Systematical exchange
bull Throughout supply chainsbull Use of correct formsbull Application of right scopebull Data gathering and liability chain
bull Provision of accurate IHMs to recyclersbull Most ships are delivered wo IHMbull Local IHMs are cheap and often not up to the markbull Lack of experience incl subsequent utilization of IHM data
bull Whatrsquos nextbull Training and awareness campaignbull Punishment of ldquonon-performersrdquobull Implementation of ISO 30005 Standardbull Etc
Trial and Error
2020-09-15 Data Reporting and Transparency
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
Henning Gramann
GSR Services GmbHAuf dem Brink 121394 SuedergellersenGermany
infogsr-servicescomwwwgsr-servicescom
A lot remains to be doneThank you
2020-09-15 Data Reporting and Transparency
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
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Slide Number 9
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Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
Ship Recycling Transparency Initiative2020 ReportThe Ship Recycling Transparency Initiative (SRTI) report is published annually and presents data collected through the SRTI online platform As the second issue published since the SRTIrsquos launch in 2018 this report aims to provide industry stakeholders with a snapshot on the SRTIrsquos progress serving as a basis for discussion at the 5 March 2020 SRTI Roundtable at Standard Chartered Bankrsquos offices in London
The report presents a compilation of data1 on the ship recycling approaches of nine major shipowners that combined operate a total of 2433 vessels Describing progress since the last SRTI report it highlights trends in sustainability and updates on ship recycling regulation The report also shares the perspectives of shipowners financiers and shippers on how transparency contributes to raising the bar on responsible ship recycling
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
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Slide Number 5
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Slide Number 9
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Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
Contents
What is the Ship Recycling Transparency Initiative
SRTI signatories
A look at the data
Ship recycling regulation The current state of play
Bringing together stakeholders across the shipping value chain
Bibliography
3
5
7
11
13
16
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
3 4
Transparency is the new normal in sustainability Transparency is key to achieving the Sustainable Development Goals Transparency-focussed initiatives such as CDP the Extractive Industries Transparency Initiative (EITI) and the Task Force on Climate-related Financial Disclosures (TCFD) demonstrate the power and benefits of disclosure The SRTI provides a space for the growing movement of sustainability leaders being transparent about their operations allowing industry stakeholders to make informed decisions and hold shipowners to account
Transparency on ship recycling helps us better understand and move towards a closed loop approach that looks at recycling across the entire lifecycle of a ship Rather than a linear ldquotake-make-wasterdquo system the SRTI supports a circular2 shipping value chain whose economic activity builds and rebuilds overall system-health An example of such an approach can be seen in the Institute for Human Rights and Businessrsquo graphic on human rights issues
Our vision is of a world where ships are recycled responsibly ndash socially environmentally and economically ndash going beyond international conventions and setting a new norm for responsible ship recycling
ldquoAn ambitious multi-stakeholder initiative wielding transparency as a market-driven tool to drive change in a hugely important industry Bravordquo2019 Responsible Business Awards ndash Judgesrsquo feedback
The SRTI has been recognised across and beyond the maritime industry winning the 2019 SAFETY4SEA Sustainability Award and Highly Commended at the 2019 Responsible Business Awards under the category Partnership of the Year SRTI Steering Group member Wallenius Wilhelmsen was also awarded the Customer Innovation Award at the Finished Vehicle Logistics North America Awards and the Greener Supply Chain Award at the Automotive Logistics Europe Awards for its founding role in the partnership The SRTI was also shortlisted for the 2019 Green4Sea Initiative Award and 2019 BusinessGreen Award
Users by country
The SRTI is financed through the annual fees paid by SRTI signatories as well as from funding sought from foundations and philanthropic organisations
Assessing progressSince going live in December 2018 the SRTI online platform has attracted more than 7400 visitors averaging 500+ usersmonth The SRTI has been covered by a range of media including a diverse range of maritime and sustainability titles such as Tradewinds BusinessGreen Maritime Risk International and Renewable Matter among others Maritime stakeholders have also highlighted the SRTI in their publications including those of the UN Global Compactrsquos Sustainable Ocean Business Action Platform and Global Maritime Forum as well as SRTI signatories Gard NORDEN Wallenius Wilhelmsen
across a shiprsquos lifecycle ndash from design planning and ordering through building and operation to recycling
The SRTI also helps shipowners take Extended Producer Responsibility3 (EPR) of their fleet By extending responsibility shipowners fulfil their moral duty by proactively taking environmental considerations into account during the design building and operations phases through the end of their vesselsrsquo working lives
Ship recycling is also contributing to the maritime industryrsquos efforts to reduce its carbon footprint by reducing emissions associated with the production of steel While the vast majority (83-90) of steel is recycled at end-of-life globally recent research by the Energy Transitions Commission suggests that global annual carbon emissions from steel production ndash currently about 7 of global energy system emissions ndash could be reduced by 37 relative to business as usual by 2050 if total steel demand were met by more scrap-based recycled steel rather than ore-based primary production
The SRTI online platform is a tool that allows shipowners to share information on their ship recycling policies and practices that in turn helps key stakeholders make informed decisions It provides shipowners with the opportunity to demonstrate their commitment to transparency by voluntarily disclosing information on their respective approaches to ship recycling against a series of criteria developed by industry stakeholders The SRTI is not a performance standard nor a rating exercise and SRTI data is neither audited nor verified by a third party this report therefore does not rank nor assess individual shipownersrsquo policies and practices
What is the Ship Recycling Transparency InitiativeThe Ship Recycling Transparency Initiative (SRTI) uses transparency to drive progress on responsible ship recycling by way of a one-stop-shop online platform to share information on ship recycling Through transparency the SRTI aims to accelerate a voluntary market-driven approach to responsible ship recycling ndash informing influencing and improving the supply chain-related decisions made by key stakeholders and ultimately leading to an industry-wide level playing field
An independent initiative hosted by the Sustainable Shipping Initiative ndash a non-profit organisation and UK registered charity ndash the SRTI reflects a collective effort that brings together stakeholders across the shipping value chain to improve ship recycling policy practice and performance The SRTI is governed by a Steering Group composed of representatives of the following organisations The China Navigation Company Pte Ltd CMA CGM (joined March 2020) Forum for the Future Hapag-Lloyd AG Lloydrsquos Register Group Services Limited AP Moeller-Maersk NORDEN Nykredit Standard Chartered Bank Stolt Tankers BV Teekay Corporation and Wallenius Wilhelmsen
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
5 6
SRTI signatories
23 companies are signatories of the Ship Recycling Transparency Initiative
2433 vessels operated by shipowners are currently disclosing their approach to ship recycling via the SRTI online platform (covering 4-5 of global merchant fleet over 1000 gross tonnes)
36 of the global container fleetrsquos tonnage is covered in this report representing a total market share of 38
SRTI signatories by type
Shipowners by vessel type Note Shipowners may cover more than one vessel type
Number of vessels owned and chartered
ldquoThe Ship Recycling Transparency Initiative empowers those who invest in or buy services from shipping companies to make informed decisions on vessel recycling With the SRTI they can demand transparency helping them ensure they do business with companies that recycle responsibly rather than those who continue with practices that have horrifying human and environmental consequences It is unthinkable that change wonrsquot be driven with such knowledge It also sends a clear signal to tonnage providers on the new normalrdquoCraig Jasienski President amp CEO Wallenius Wilhelmsen
Image Global Maritime Forum
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
7 8
Ship recycling policy
9 out of 9 disclosing shipowners have a written policy on ship recycling for their own vessels of which six make their policies publicly available
9 out of 9 disclosing shipownersrsquo policies on ship recycling adhere to the Hong Kong Convention
9 out of 9 disclosing shipownersrsquo policies cover issues related to the environment labour and human rights
8 out of 9 disclosing shipowners have up to (or more than) half of the ships they own covered by the EU Ship Recycling Regulation (EU SRR) one has none
8 out of 9 maintain records of ships which have been sent for recycling
5 out of 9 disclosing shipownersrsquo policies contain restrictions based on the country where recycling takes place
4 out of 9 disclosing shipownersrsquo policies contain restrictions on recycling methods
Policy for selling owned vessels for further trading
4 out of 9 disclosing shipownersrsquo policies include a provision in the sales contract that the buyer will ensure compliance with the original shipownerrsquos ship recycling policy if the vesselrsquos residual value is below 25 above the highest current scrap value
Promotion of responsible recycling of chartered and JV-owned vessels Does the company take steps to promote responsible recycling of vessels chartered for 5 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels chartered for 2 years and over released for redeployment or recycling
Does the company take steps to promote responsible recycling of vessels owned through JVs
International conventions and principles to which ship recycling policies adhere
Issues covered by ship recycling policies and monitoring mechanisms
Disclosing shipownersrsquo policies adhere to a range of global and regional international conventions guidelines and principles of relevance to ship recycling These include
ndash Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention adopted 2009 not yet in force)
ndash EU Ship Recycling Regulation (where applicable according to vessel flag)
ndash Basel Convention on the Control of Transboundary Movements of Hazardous Waste and Their Disposal (Basel Convention adopted in 1989 and in force since 1992)
ndash United Nations Global Compact
ndash UN Guiding Principles on Business and Human Rights
ndash OECD Guidelines for Multinational Enterprises
ndash Stockholm Convention on Persistent Organic Pollutants (Stockholm Convention)
ndash ISO Specifications for management systems for safe and environmentally sound ship recycling facilities (ISO 30000 2009)
The coverage of issues by disclosing shipownersrsquo ship recycling policies and their respective monitoring mechanisms is uneven All shipownersrsquo policies cover the environment as well as labour and human rights other issues commonly covered include downstream facilities for managing waste and hazardous materials health and safety All disclosing shipownersrsquo monitoring mechanisms for their ship recycling policies address issues related to the environment as well as health and safety Labour and human rights-related issues also feature highly in their monitoring
A look at the data
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
9 10
Ship recycling contract More data on ship recycling
4 out of 9 disclosing shipowners use RECYCLECON from BIMCO as a contract for the sale of ships for recycling in a safe and environmentally sound manner
9 out of 9 use in-house developed agreements or contracts for the sale of vessels for green recycling
90 of global shipbuilding (in terms of tonnage) was located in China the Republic of Korea and Japan5
647 ships were recycled worldwide of which 236 were recycled in Bangladesh 200 in India and 107 in Turkey6
397 deaths recorded in ship recycling yards since 20097 of which at least 26 occurred in 2019
8 out of 9 disclosing shipownersrsquo contracts include an explicit requirement to recycle the vessel at a specific ship recycling facility the same number develop individual ship recycling plans for each vessel
9 out of 9 require access to the ship recycling facility for monitoring during the recycling process eight require access for performance follow-up while seven require access for control and stopping work during the recycling process
To protect themselves and maintain ship access and monitoring throughout the ship recycling process sellers receive regular monitoring reports conduct third party audits (eg by external independent classification societies) and obtain access to shipyard sites personnel and documentation
Implementation of ship recycling policy and standard
Inventory of hazardous materials and ship-specific documentation
9 out of 9 disclosing shipowners always provide the buyership recycler with a Class approved IHM at the time of finalising the ship recycling contract all provide full relevant documentation (including ship certificates plans and procedures) to enable the shipyards to follow applicable ship recycling guidelines
8 out of 9 disclosing shipowners require the ship recycling facility to have a Hong Kong Convention statement of compliance issued by a Classification Society4
9 out of 9 shipowners carry out additional audits to verify compliance prior to ship recycling as well as monitoring yard compliance throughout the ship recycling process
Mechanisms for monitoring ship recycling processDisclosing shipowners monitor yard compliance during the recycling process through different means with most conducting ongoing supervision andor assigning a company representative for monitoring Shipowners also conduct follow-up onsite and spot checks Other means of monitoring include the deployment of a responsible ship recycling supervision team independent third-party approval and monitoring guided by an environmental and social action plan developed on the basis of an impact assessment monitoring of performance and incident data regular reporting and training
Recycled ships (in gross tonnage) by country ndash 2019
ldquoAs an industry we must drive and support the raising of standards globally by raising the safety and sustainability bar to the same level we have achieved in the other stages of a shiprsquos lifecycle ndash shipbuilding and ship operations which many of us have focused on intensely as responsible shipowners over the past decadesrdquoKenneth Hvid President and CEO Teekay
ldquoWe consider transparency as an important principle in line with conducting business in a legal ethical and socially responsible manner SRTI is not a compliance exercise but about being transparent which we are confident will drive improvements and influence responsible practices across the supply chainrdquo
Jan Rindbo CEO NORDEN
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
11 12
The Hong Kong International Convention for the safe and environmentally sound recycling of ships
Basel Convention on the control of transboundary movements of hazardous wastes and their disposal
Adopted in 2009 the Hong Kong Convention is yet to enter into force It aims at ensuring that ships do not pose any unnecessary risk to human health and safety or to the environment when being recycled at the end of their operational lives
The Basel Convention aims to protect human health and the environment by reducing the movement of hazardous materials and preventing the transfer of hazardous waste from developed to less developed countries The treatyrsquos obligations include the reduction of waste at source management of waste within the country in which it is generated the reduction of transboundary movement of wastes management of waste in an environmentally sound manner and controlled waste trade
The Basel Ban Amendment entered into force on 5 December 2019 and prohibits OECD and EU member states and Liechtenstein from exporting hazardous wastes as defined by the Basel Convention to developing countries
International Labour OrganizationThe UNrsquos International Labour Organisation (ILO) developed a set of criteria on ship recycling endorsed in March 2004 The Safety and Health in Shipbreaking Guidelines for Asian Countries and Turkey aim to support the implementation of the relevant provisions of ILO standards codes of practice and other guidelines on occupational safety and health and working conditions as well as those provisions of other relevant international bodies The guidelines are not legally binding nor are they intended to replace national laws regulations or accepted standards
EUThe EU Ship Recycling Regulation (EU SRR) was adopted in 2013 and entered into force on 1 January 2019 by the European Parliament and the Council of the European Union with the aim of reducing the negative impacts linked to the recycling of ships flying EU Member State flags The EU SRR sets out the requirements for ships and ship recycling facilities to ensure ship recycling is conducted in an environmentally sound and safe manner On 22 January 2020 the European Commission issued the sixth version of the European List of ship recycling facilities (the EU ldquoWhite Listrdquo) listing 41 approved ship recycling facilities including 6 outside of Europe
In October 2019 the European Maritime Safety Agency (EMSA) published Guidance on the inspection of ships by the port states in accordance with Regulation (EU) 12572013 on ship recycling aiming to assist EU Member States to fulfil the requirements of EU SRR and PSC Directives
The Hong Kong Convention covers the design construction operation and maintenance of ships to ensure they are responsibly recycled at the end of their lives It requires that ships sent for recycling carry an Inventory of Hazardous Materials on board as well as provide a ship recycling plan
Hong Kong ConventionAdoption 15 May 2009
Entry into force 24 months after ratification by 15 States representing 40 per cent of world merchant shipping by gross tonnage combined maximum annual ship recycling volume not less than 3 per cent of their combined tonnage
Signatories as at February 2020 (representing just over 30 of world merchant shipping tonnage) Belgium Congo Denmark Estonia France Germany Ghana India Japan Malta Netherlands Norway Panama Serbia and Turkey
ldquoWhat happens to ships at the end of their lifetime is an important global issue with major consequences for safety and the environment I urge all countries yet to do so to ratify this important convention so it can enter into force and provide a consistent global regulatory regime for this vital industryrdquo
Kitack Lim Secretary General IMO ldquoThe Ship Recycling Transparency Initiative platform provides the knowledge and information to enable informed decisions to be made to support improvements in the safety and environmental practices of recycling shipsrdquo
Nick Brown Marine amp Offshore Director Lloydrsquos Register
Basel ConventionAdoption 22 March 1989
Entry into force 5 May 1992
53 signatories 187 parties
Ship recycling regulation The current state of play
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
1_How data reporting_Holding slide
1SR_LIVE_Andrew Stephens_SSI
Slide Number 1
Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Slide Number 12
Slide Number 13
Slide Number 14
1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
13 14
A financierrsquos perspectiveFinancial 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 companiesrsquo 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 Banksrsquo 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
Bringing together stakeholders across the shipping value chainA shipownerrsquos perspectiveBy 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 shipownersrsquo 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
ldquoThe 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 allrdquo
James Woodrow Managing Director The China Navigation Company
ldquoHapag-Lloyd strongly encourages all players and competitors to support full transparency and contribute to a level playing field when it comes to ship recyclingrdquoAnthony Firmin COO Hapag-Lloyd AG
CDP uses ship recycling governance as a metric by assessing shipping companiesrsquo commitment towards responsible ship recycling including their transparency in disclosing via the SRTI
ldquoTaking 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 usedrdquoMark Martecchini President Stolt Tankers
ldquoStandard Chartered welcomes the SRTI initiative to help create a level playing field in the ship recycling value chain through promoting transparencyrdquoAmit Puri Global Head of Environmental and Social Risk Management Standard Chartered Bank
ldquoWe believe that increased transparency around recycling practices of ship owners will be a key part of the solution ndash which will also require enforcement and cooperation between many stakeholders including investorsrdquoJens Munch Holst CEO MP Pension
ldquoThis 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 opportunitiesrdquoMorten Therkildsen Managing Director Nykredit Asset Management
15 16
ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
10
9
4
1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
Ship Recycling Transparency Initiative (SRTI)Using transparency to drive progress on responsible ship recycling
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1SR_LIVE_Andrew Stephens_SSI
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Andrew Stephens
WHO IS INVOLVED
VISION MISSIONOBJECTIVES
FINANCE AS A DRIVER FOR CHANGE
THE SHIP LIFECYCLE
THANK YOU
1SR_LIVE_Anand Hiremath_GMS
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1SR_LIVE_Henning Gramann_GSR
How data reporting is transforming ship recycling
GSR Services
Content
Background
Data Reporting form Cradle to Grave
Role of Suppliers
Scrutiny for Suppliers and Owners
Trial and Error
A lot remains to be doneThank you
SRTI-2020-Report-V7
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ldquoThe SRTI is the only global initiative that is looking at the entire lifecycle of the vessel including what happens to the vessel when itrsquos no longer used That transparency is helping to create guiding principles that will affect the entire industry thatrsquos why the SRTI is a front runner when it comes to sustainabilityrdquoStephan Reinhold Sustainability Manager for Transport and LogisticsBMW Group
ldquoBunge 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 expectationsrdquoMarcio Valentim Moura Director of Global Logistics for Bunge
ldquoLDC 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 industryrdquoSebastien Landerretche Head of the Freight Platform Louis Dreyfus Company
A shipperrsquos perspectiveCustomers 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
Bibliographyndash CDP (2019) A Sea Change Which shipping companies are ready for the low-carbon transition
ndash Ellen Macarthur Foundation (2020) What is the circular economy
ndash Energy Transitions Commission (2018) Mission Possible Reaching net-zero carbon emissions from harder-to-abate sectors by mid-century ndash Sectoral Focus Steel
ndash European Commission (2020) Ship recycling
ndash Institute for Human Rights and Business (2019) The Ship Lifecycle Embedding Human Rights from Shipyard to Scrapyard
ndash MSCI (2019) Industry Report ndash Marine transport
ndash MSCI (2020) ESG Research
ndash NGO Shipbreaking Platform (2019) The Toxic Tide 2019 Shipbreaking Records
ndash Robin des Bois (2019) Shipbreaking Bulletin of information and analysis on ship demolition 57
ndash UNCTAD (2019) Annual Review of Maritime Transport
Endnotes1Full disclosure data on individual companies can be accessed via the SRTI online platform wwwshiprecyclingtransparencyorg 2According to the Ellen Macarthur Foundation ldquoa circular economy is based on the principles of designing out waste and pollution keeping products and materials in use and regenerating natural systemsrdquo wwwellenmacarthurfoundationorgcircular-economywhat-is-the-circular-economy3OECD defines EPR as ldquoan environmental policy approach in which a producerrsquos responsibility for a product is extended to the post-consumer stage of a productrsquos life cyclerdquo httpwwwoecdorgenvironmentextended-producer-responsibilityhtml4Recognising the Hong Kong Convention is not yet in force one shipownerrsquos approach was to ensure it exceeded the Conventionrsquos requirements and therefore is not currently seeking a statement of compliance 5UNCTAD 2019 6NGO Shipbreaking Platform 2020ldquoThe data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders and is cross-checked whenever possible The data upon which this information is based is correct to the best of the Platformrsquos knowledge and the Platform takes no responsibility for the accuracy of the information provided The Platform will correct or complete data if any inaccuracy is signalled All data which has been provided is publicly available and does not reveal any confidential business informationrdquo7NGO Shipbreaking Platform 2020
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1
Scan the QR code to access
this report
SustShipping
The SRTI is hosted by the Sustainable Shipping Initiative
Photo CreditsBMW Group The China Navigation Company
European Commission Global Maritime Forum Maersk PHP Group of Industries Standard Chartered Bank
