Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Corporate Governance
• Environmental Management
• Social Responsibility
• Safety

Environmental Achievements

• 2017 EEOI (51.39 g/TEU-Km) was less than 2015, marking a 10.12% increase in efficiency.
• Reduced annual fleet NOx emission rate by 0.7% compared with 2016.
• Reduced annual fleet sulphur oxide emission rate by 2.4% compared with 2016.
• Green purchase of 2017 was TWD 1,963,843.
• Approximately 45,600 TEU of new containers used waterborne paints, reducing about 1,668 tons of VOC.

Social Achievements

• Launched mobile business system APP and LINE BOT Query Service for improved customer service.
• Held 66 safety and health trainings, involving 1600 participants.
• Improved customer satisfaction score to 4.54 out of 5 points in Greater China.
• Promoted 18 seafarers to Masters, 42 to Chief Officer, 7 to Chief Engineers and 16 to 2nd Engineers.

Governance Achievements

• No violations of environmental protection laws and regulations in 2017.
• No violations of Code of Conduct, Code of Ethical Management or competition law in 2017.
• Implemented training course of "Code of Conduct and Code of Ethical Management" for all management and employees (774 participants).

Climate Goals & Targets

Environmental Challenges

• Oversupply in the shipping market.
• Fluctuation of fund.
• Risk of information system service outage.
• Climate change and greenhouse gas related issues.

Mitigation Strategies

• Strategic cooperation with THE Alliance.
• Seasonal service adjustments.
• Asset and liability management for interest rate risks.
• Natural hedge for foreign exchange rate risks.
• Price transfer, bunker saving and fuel oil hedge for fuel oil price risks.
• High security system, mutual backups, and database synchronization for information system risks.
• Implementation of fuel-saving and carbon reduction programs, study of new energy-saving technologies, and use of insurance mechanisms.

Supply Chain Management

Supplier Audits: Annual audits of existing and new suppliers.

Responsible Procurement

• Compliance with Yang Ming's Code of Ethical Management.
• Public and transparent transactions.

Climate-Related Risks & Opportunities

Physical Risks

• Frequent and intense storm shocks
• Dissolved sea-level changes in icebergs
• Changes in ambient temperature
• Changes in available water resources
• Impact on the workforce

Transition Risks

• Regulatory changes (e.g., carbon taxes, emissions trading)
• Market shifts

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001

Third-party Assurance: DNV GL

Awards & Recognition

• 2016 Blue Circle Awards by Port Metro Vancouver
• 2017 Best Shipping Line-Intra-Asia award by Asia Cargo News
• AMVER award by U.S. Coast Guard

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Corporate Governance
• Employee Well-being
• Social Commitments
• Climate Change

Environmental Achievements

• Reduced fleet's carbon emissions by 25.6% from 2018 levels to 4.074 million tons in 2023.
• Ordered construction of five new 15,500TEU LNG dual-fuel containerships to meet IMO standards and reduce operating costs.

Social Achievements

• Launched the 'Let's Go Sport!' program to sponsor up-and-coming athletes.
• Extended Employee Assistance Programs (EAPs) to seafarers.
• Conferred the Top 100 Sustainable Taiwanese Companies Award and Corporate Sustainability Reports Award: Transportation Sector-Platinum.

Governance Achievements

• Joined the Maritime Anti-Corruption Network.
• Established the Risk Management Committee.
• Implemented blockchain technology at Hong Ming Terminal & Stevedoring Corp. to promote paperless container pickup.

Climate Goals & Targets

Environmental Challenges

• Significant contraction in container shipping demand in 2023.
• Rapid growth of capacity in the supply chain.
• Supply far exceeding demand in the shipping market.
• Widening supply-demand imbalance.
• Increasingly competitive market.
• Uncertainties in the world’s political and economic scenes.
• Stricter environmental regulations and urgent need for low-carbon transformation.

Mitigation Strategies

• Implemented business strategies resulting in a net profit after tax of NT$4.77 billion.
• Service layout optimization and schedule recovery plan.
• Strengthening cost control.
• Established YM Group’s emissions reduction targets and phased implementation policies to achieve net zero or near-zero emissions by 2050.
• Adjusting business operations to improve profitability.
• Stable and conservative service planning.
• Agile service configuration, maximizing loading factor and balancing container flow.
• Improving operating efficiency and containers turnaround.
• Promoting energy conservation and carbon reduction, enhancing information security and system reliability.
• Introducing DCSA digital standards and applying RPA and AI technologies.

Supply Chain Management

Supplier Audits: 102 tier 1 suppliers (written audits) and 5 on-site audits in 2023

Responsible Procurement

• Supply Chain Management Policy
• Supplier’s Code of Conduct
• Company Basics and Assessment Form
• Company Sustainability Statement Survey
• Statement of Integrity in Business Operation

Climate-Related Risks & Opportunities

Physical Risks

• Damage to vessels/containers due to extreme weather
• Disruption or halt of port operations due to extreme weather

Transition Risks

• Tightening carbon emission regulations and energy efficiency requirements
• Increase in fuel costs due to low-carbon fuels
• Technical transformation and maintenance costs

Opportunities

• Adoption of new technologies to raise operational efficiency
• Adoption of transportation methods with higher efficiency
• Diversification of business activities

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 45001, ISO 14064-1, C-TPAT, AEO, ISM, ISPS, MLC

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 17 (Partnerships for the Goals)

Yang Ming's initiatives contribute to these goals through energy saving and emission reduction, marine conservation, and collaborations with international organizations.

Sustainable Products & Innovation

• LNG-powered dual-fuel vessels

Awards & Recognition

• Sapphire Award of Protecting Blue Whales & Blue Skies program
• Best Shipping Line–Trans-Pacific from Asia Cargo News
• Blue Circle Award
• Bronze Medal in 2023 Sports Promoter Award
• Top 100 Sustainable Taiwanese Companies Award
• Corporate Sustainability Reports Award: Transportation Sector- Platinum
• Bronze Award of the National Enterprise Environmental Protection Awards
• Golden Award and Cultural Sustainability Award from the 16th Arts & Business Awards
• Best IT Employer Award