Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and wellbeing of staff
• Ethical business practice
• Environment
• Communities in which we operate

Environmental Achievements

• Reduced carbon intensity by 4% to 10.49 grams of CO2 per tonne-mile (EEOI)
• Zero marine pollution violations in over 41,000 ship operating days
• 3% reduction in electricity consumption in Hong Kong headquarters

Social Achievements

• 13% year-on-year improvement in Lost Time Injury Frequency (LTIF) to 0.71, the lowest since 2004
• 90% shore staff retention
• 87% overall crew retention
• Adoption of Hong Kong Equal Opportunities Commission’s Racial Diversity and Inclusion Charter

Governance Achievements

• Enhanced anti-bribery policy and provided anti-corruption training for most shore-based and seafaring staff
• Zero legal cases regarding corrupt practices
• Certified by TRACE (anti-bribery organisation) since 2017

Climate Goals & Targets

Environmental Challenges

• IMO 2020 global 0.5% sulphur limit
• Ballast Water Management Convention
• IMO’s ambitious greenhouse gas (GHG) reduction goals
• More frequent and intense cyclonic activity and rough seas
• Increasing temperature extremes

Mitigation Strategies

• Implemented compliance solutions for IMO 2020 (using low-sulphur fuel and exhaust gas scrubbers)
• Retrofitting all remaining owned Handysize and Supramax vessels with BWTS by the end of 2022
• Joined the Getting to Zero Coalition
• Invest in fuel-efficient ships, energy-efficiency technologies and fuel optimisation practices
• Operate globally, following a tramping model, to direct ships wherever it is safe and practical

Supply Chain Management

Supplier Audits: 250 suppliers vetted in 2019

Responsible Procurement

• Pacific Basin Management System
• Supplier Code of Conduct
• Vendor Evaluation Form

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and intense cyclonic activity and rough seas
• Increasing temperature extremes

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: DNV GL Business Assurance

Awards & Recognition

• Lloyd's List Asia Pacific Awards 2019 Excellence in Dry Bulk Shipping
• International Bulk Journal Awards 2019 People Development Award
• Hong Kong Marine Department Awards 2019 Outstanding Performance in Port State Inspections
• Port of Vancouver’s EcoAction Program Blue Circle Awards
• Hong Kong ESG Report Awards Commendation in Best ESG Report (mid-cap)
• Commendation in Excellence in Environmental Disclosure

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety, Workplace and Business Practices
• Community Engagement
• Corporate Governance

Environmental Achievements

• Reduced carbon intensity (EEOI) by 6.7% to 9.79 grams of CO2 per tonne-mile.
• Achieved 85% compliance with IMO 2020 sulphur cap through low-sulphur fuel and scrubbers.
• Successfully fitted 77 ships with BWTS ahead of schedule.
• Offset all carbon emissions from global onshore operations.

Social Achievements

• Improved LTIF by 15% to 0.60.
• Improved TRCF to 1.11.
• 81% of Port State Control inspections found zero deficiencies.
• 94% shore staff retention.
• 96% officer retention.
• 88% overall crew retention.

Governance Achievements

• Established a Sustainability Management Committee (SMC).
• Achieved AA- sustainability rating from HKQAA.
• Enhanced anti-bribery policy and provided anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Global crew change crisis due to Covid-19 restrictions.
• Uncertainty about future environmental regulations and available technologies.
• Managing climate-related physical and transition risks.

Mitigation Strategies

• Vigorous engagement with governments for crew change solutions.
• Wide-ranging business continuity initiatives.
• Enhanced shore-based support for seafarers.
• Pursuing strategies aligned with IMO's GHG reduction strategy.
• Conducting enhanced operational risk assessment to understand climate-related risks.

Supply Chain Management

Supplier Audits: 185 suppliers vetted in 2020

Responsible Procurement

• Supplier Code of Conduct
• Vendor Evaluation Form
• Selection of certified and reputable suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Cyclones
• Sea ice
• Extremely low atmospheric pressure
• Hurricanes
• Floods
• Sea level rise

Transition Risks

• Policy, legal, technology, and market changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SEHK ESG Reporting Guide, UN Global Compact, International Integrated Reporting Council’s International Framework, GRI Standards (Core option)

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: DNV GL Business Assurance

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 8
• Goal 13
• Goal 14
• Goal 16
• Goal 17

Initiatives aligned with UN SDGs to achieve a better and more sustainable future.

Awards & Recognition

• Hong Kong ESG Reporting Awards 2020 Commendation for Excellence in Social Positive Impact
• HKICPA Best Corporate Governance Awards 2020 Gold Award
• Hong Kong Marine Department Awards 2020 Outstanding Performance
• Port of Long Beach Green Flag Award

Environmental Metrics

ESG Focus Areas

• Employee Safety, Health & Wellbeing
• Carbon & GHG Emissions Reduction
• Good Management & Corporate Governance
• Diversity, Inclusion & Equal Opportunity
• Responsible Business Practices and Cargo Carriage

Environmental Achievements

• Fleet’s carbon intensity in 2022 decreased 4.4% to 9.66 grams of CO2 per tonne-mile
• Fleet registered an AER carbon intensity of 6.07, representing a 3.3% decrease
• All of our 28 owned ships that are subject to Energy Efficiency Design Index (EEDI) rules have attained an average EEDI of 4.74 grams of CO2 per tonne-nautical mile
• All of our owned ships are prepared for compliance with new EEXI rules in 2023/2024.
• Voluntarily offset the carbon emissions from our global onshore operations in 2022.

Social Achievements

• 82% overall staff engagement score
• 88% of shore staff enjoy working at Pacific Basin
• 36% of shore staff have worked for Pacific Basin for over 10 years
• Enhanced wellness and training programmes
• Created a new role of “Head of Training” in 2022

Governance Achievements

• Established a dedicated sustainability team to further enhance our strategic focus on sustainable development
• Pacific Basin has been certified by globally recognised anti-bribery organisation TRACE since 2017
• 100% of our new joiners completed anti-corruption training in 2022
• All of our directors received anti-corruption training in the past three years

Climate Goals & Targets

Environmental Challenges

• Industry-wide and global challenges and uncertainties
• Great decarbonisation challenge
• Coming carbon reduction rules and the expected raft of new measures
• Flawed current CII framework
• Growing patchwork of different and sometimes inconsistent rules and regulations around the world

Mitigation Strategies

• Doubled down on preparations and strategies for the great decarbonisation challenge
• Developed our own digital application suite for best carbon-intensity tracking and decision-making
• Developed a new Right Speed Program
• Enhanced our system for collecting required AER data from our chartered-in vessels
• Established a dedicated sustainability team

Supply Chain Management

Supplier Audits: 267/year

Responsible Procurement

• Pacific Basin Management System manual
• Counterparty Code of Conduct
• Counterparty Form

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Decarbonisation rules
• Carbon pricing
• New fuels and propulsion systems
• Changing commodity trade patterns

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: American Bureau of Shipping (ABS)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 8
• Goal 13
• Goal 14
• Goal 16
• Goal 17

Our sustainability priorities, strategy and targets are aligned with the United Nation’s 2030 Agenda for Sustainable Development and consistent with several of the UN’s Sustainable Development Goals (SDGs)

Awards & Recognition

• Shipping Company of the Year at the Seatrade Maritime Awards
• Bulk Ship Operator of the Year at the IBJ Awards
• Gold Award for the Most Sustainable Companies at Hong Kong’s HKICPA Best Corporate Governance and ESG Awards

Environmental Metrics

ESG Focus Areas

• Carbon & GHG Emissions Reduction
• Employee Safety, Health & Wellbeing
• Good Management & Corporate Governance
• Diversity, Equity & Inclusion
• Responsible Business Practices & Cargo Carriage

Environmental Achievements

• Reduced EEOI carbon intensity by 12.1% to 8.49 grams of CO2 per tonne-mile in 2023.
• Achieved 91% of owned ships with a CII rating of A, B, or C.
• Applied silicone hull coating to seven owned ships, resulting in significant fuel savings of around 8%.

Social Achievements

• Extended maternity leave and increased paternity leave.
• Organized back and neck care program and other wellness programs for Hong Kong colleagues.
• Maintained low injury rates (LTIF of 0.67) despite a return to pre-Covid maintenance levels.

Governance Achievements

• Established a new Sustainability Committee for elevated Board-level oversight of sustainability.
• Successfully concluded the first sustainability-linked unsecured US$150 million revolving credit facility.
• Maintained a zero corruption record and 100% of new joiners completed anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• High costs and uncertainty of decarbonisation investments (retrofits, newbuilds, sustainable fuels).
• Uncertainty about the availability of sustainable fuels.
• Difficulty in passing increased fuel and operational costs along the value chain.
• Increased drug smuggling and the unjust criminalisation of seafarers.
• Security risks in the maritime field (piracy, robbery, drug smuggling).

Mitigation Strategies

• Investing in fuel-efficiency enhancements and practices.
• Collaborating on the design and build of methanol-capable LEVs.
• Working to support demand for and availability of green fuels.
• Implementing rigorous security measures and enhanced security training.
• Engaging with authorities and industry organizations to address drug smuggling and seafarer criminalization.

Supply Chain Management

Supplier Audits: 221 suppliers vetted in 2023

Responsible Procurement

• Counterparty Code of Conduct
• ESG considerations in supplier evaluation
• Automated sanctions screening

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Decarbonisation rules
• New fuels and propulsion systems
• Changing commodity trade patterns

Opportunities

• Development of energy-efficient products and services
• Collaboration with customers to decarbonize supply chains

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN Global Compact, HKEX ESG Reporting Guide

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, TRACE

Third-party Assurance: American Bureau of Shipping (ABS)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 8
• Goal 13
• Goal 14
• Goal 16
• Goal 17

Initiatives align with various SDGs, including education, gender equality, decent work, climate action, life below water, peace, justice, and strong institutions, and partnerships for the goals.

Sustainable Products & Innovation

• Dual-fuel low-emission vessel (LEV) design.

Awards & Recognition

• Bulk Ship Operator of the Year (IBJ Awards)
• Gold Award in Most Sustainable Companies (HKICPA)
• Three Grand Awards at Hong Kong ESG Reporting Awards