Carbon / Environment: 2016 Summary

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We will help create a resilient environment that provides for our future by pursuing a long-term goal of decarbonisation and optimising energy efficiency and protecting and, where viable, enhancing the biodiversity of the environment.

2016 Summary

CNCo continues to seek innovative ways to minimise the impact of our business on the environment and biodiversity in the regions in which we operate. Over the years, we have made significant progress towards environmental sustainability by adopting a proactive approach towards sustainable shipping, expanding our eco-efficient fleet and implementing a number of operational initiatives.

Our environmental goals and commitments

CNCo’s Environmental Policy includes our over-arching commitment to a target of “Zero Pollution” incidents and our ultimate long-term goal is for our operations to have a “Net Zero Impact” on the environment and its biodiversity. We have set an internal, science- based target, based on research by University College London as an input to IMO's deliberations to the United Nations Framework Convention on Climate Change (UNFCCC). We work actively to achieve a KPI of reducing our EEOI (Energy Efficiency Operational Index or the energy we expend moving one tonne of cargo, one nautical mile) by 35% below our baseline by the end of 2020.

This is a key goal to advance our journey towards “Net Zero Environmental Impact”. Our progress for the bulk and liner fleet's EEOI since 1 January 2014 is shown in graphs on pages 73 and 74. The EEOI figures for liner fleet show a downward trend. This is largely a result of using more fuel efficient ships, rationalisation of individual trades, and a higher focus on operational efficiency. We continue to monitor emissions for each ship on a per voyage and an annual basis and use the IMO EEOI metric as our baseline.

These environmental goals are a part of CNCo’s Strategic Scorecard 2030 and are revisited every year by CNCo’s senior leaders. In the calendar year 2016 we achieved a reduction in liner EEOI (transport work efficiency and thus GHG emissions) of 3.0% towards our interim goal of a 15% reduction in EEOI. The bulk fleet EEOI increased by 23.7% (equating to 30.3% over our target EEOI for December 2016), however we will be using the software on board (Kongsberg Marorka) and in the office (IMOS VESON) to move this from a manual to an automatic calculation as part of the bulk fleet’s compliance with EU MRV Regulations for relevant ships, and this may result in re-stating of this data series.

Other objectives (KPIs) towards achieving Net Zero environmental impact by 2030 include:

  • Energy Efficiency Design Index (EEDI) compliance index at ≤ 80% for all relevant liner and bulk vessels on delivery to CNCo (deriving more transport work efficiency from less fuel);
  • Existing vessel design efficiency (EVDI) to be ≥ 50% better than baseline upon taking delivery of the vessels;
  • Implement three pilot technical or operational initiatives that can lead to a 50% reduction in an atmospheric environmental impact of the liner, bulk and bulk logistics fleet.

CNCo continues to seek innovative ways to minimise the impact of our business on the environment and biodiversity in the regions in which we operate.
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