The first report of the Ship Recycling Transparency Initiative (SRTI) was launched recently at Tradewinds Ship Recycling Forum 2019 in Hong Kong. Presenting data collected through a disclosure questionnaire circulated among shipowners as part of the SRTI, the report clearly indicates that there is a growing movement stepping up the pressure on shipowners to disclose their approaches to ship recycling.
Since the SRTI online platform went live just over four months ago, eight large shipowners – operating a combined total of more than 1,800 vessels – have voluntarily shared data on their company’s ship-recycling policies and practice.
All disclosing shipowners have a written policy on ship recycling for their own vessels covering issues related to the environment, labour and human rights in accordance with the Hong Kong Convention.
“We’re seeing increasing pressure on shipowners from key stakeholders including investors, retailers and manufacturers,” said Andrew Stephens, Executive Director of the Sustainable Shipping Initiative who is presenting at Tradewinds in Hong Kong.
“Conversations with cargo owners, lenders and insurance companies have highlighted that they too want more information on ship recycling to inform their decision-making.”
“The beauty of the SRTI is that it can easily be incorporated into their existing sustainability strategies, such as building into supplier codes of conduct and used as a requirement in procurement processes.
“Shipowners feel the effects of the market as they are being held accountable; the simple act of being transparent about their approach to ship recycling is leading to improved policy, practice and performance.”
Major vehicle manufacturers including BMW and Scania have recently signed up to the SRTI, demonstrating their willingness to be held to account for their supply chain.
Financial stakeholders make up one third of those involved in the SRTI – including recent signatories MP Pension and PBU – reflecting a continuing trend for investment funds to scrutinise shipowners’ ship-recycling practices.
The SRTI report also reveals how shipowners implement their commitments through the use of standard contracts such as BIMCO’s RECYCLECON for the sale of vessels for green recycling; and/or explicit requirements for facilities to follow a specific plan.
100 per cent of disclosing shipowners monitor facilities’ compliance during the process, mostly by way of ongoing supervision and assigning a company representative. Shipowners also conduct follow-up onsite and spot checks.
Economic decline, along with a restrictive lockdown, left the freight sector in a vulnerable situation.