Climate Change Data

Mitsui O.S.K. Lines, Ltd.

Climate Impact & Sustainability Data (2003-04 to 2004-03, 2005-04 to 2006-03, 2013-04 to 2014-03)

Reporting Period: 2003-04 to 2004-03

Environmental Metrics

Total Carbon Emissions:1,316,000 t-CO2
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,284,000 kWh
Water Consumption:10,101 m3
Waste Generated:115 tons (head office)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions per unit load by 2.9% from FY2001
  • Reduced SOx emissions per unit load by 4.3% from FY2001
  • Replaced R12 refrigerant in all refrigerated containers with R134a
  • Launched 5 wind-resistance reduction type car carriers
  • Launched 7 new type containerships with improved fuel tank design

Social Achievements

  • Established a CSR Sub-committee
  • Established the CSR and Environment Committee and Office
  • Expanded environmental management system certification to include Mitsui O.S.K. Passenger Line and Shosen Mitsui Ferry Co.
  • Acquired ISO9001:2000 certification for Mitsui O.S.K. Lines Maritime (India) Pvt. Ltd.

Governance Achievements

  • Strengthened corporate governance system
  • Enhanced compliance system with Compliance Committee and Code of Conduct
  • Increased outside auditors from 1 to 2 of 4 total auditors

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Replace all remaining single-hull tankers with double-hull ones by FY2006
Short-term Goals:
  • Reduce CO2, NOx, and SOx emissions per unit load
  • Reduce electricity use at head office by 3% from FY2002 levels
  • Reduce paper use at head office by 5% from FY2002 levels
  • Recoat all vessels (except chartered) with TF paints by FY2005

Environmental Challenges

  • Inadequate reduction of paper, electricity, and waste at the head office
  • Increase in electricity consumption at head office due to air conditioning
  • Increase in SOx emissions due to increased fuel consumption
Mitigation Strategies
  • Upgraded air conditioning system to reduce electricity consumption
  • Implementing measures to reduce paper use at head office
  • Strengthening measures to reduce fuel consumption and NOx and SOx emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green purchasing of office supplies (85.6% in FY2003)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: Environmental Report Guidelines 2003, Environmental Accounting Guidebook (Ministry of the Environment, Japan)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Wind resistance reducing car carriers
  • Containerships with improved fuel tank design
  • PBCF (Propeller BossCap Fins)

Awards & Recognition

  • Ship of the Year Award 2003 (Courageous Ace)
  • DOLE International Employees Award (Philippines)

Reporting Period: 2005-04 to 2006-03

Environmental Metrics

Total Carbon Emissions:15,586 thousand tons CO2e/year
Water Consumption:9,461 m3/year
Waste Generated:126 tons/year

ESG Focus Areas

  • Global Warming
  • Safe Operation
  • Marine Environmental Protection
  • Air Pollution Prevention
  • Employee Well-being
  • Social Contribution
  • Corporate Governance
  • Compliance

Environmental Achievements

  • Nearly maintained 2004 level of CO2 emission per unit load (only 0.1% increase)
  • Completed switch to TF ship bottom paint on all managed vessels
  • Launched six double-hull tankers
  • Reduced electricity use by 20% compared to FY2003
  • Reduced office paper use by 0.1% from FY2004

Social Achievements

  • Implemented employee satisfaction survey showing generally high satisfaction
  • Implemented the first MOL Kids Cruise
  • Opened MOL Training Center (MSU Russia)
  • Expanded the capacity of the training institute in Mumbai

Governance Achievements

  • Joined the United Nations Global Compact in March 2005
  • Published CSR handbook for Group employees
  • Strengthened rules of conduct to conform to antitrust laws
  • Established the Corporate Auditor Office

Climate Goals & Targets

Medium-term Goals:
  • Reduce CO2 emission per unit load from MOL-operated vessels by 10% from FY2005 levels by 2010
  • Reduce NOx/SOx emission per unit load from MOL-operated vessels by 10% from FY2005 levels by 2010
Short-term Goals:
  • Prevent serious marine accidents including oil spill
  • Reduce CO2, NOx, and SOx emissions per unit load

Environmental Challenges

  • Rising bunker prices and a correction in the containership market compressed profits
  • Fleet expansion leading to increased total emissions of CO2, NOx, and SOx
  • Need to address employee concerns about working conditions
  • Need to improve communication and understanding of the company's activities among stakeholders
Mitigation Strategies
  • Continued to introduce vessels and devices featuring energy-saving and environmental technologies
  • Implemented employee satisfaction survey and started tackling areas of dissatisfaction
  • Proactive communication with shareholders, investors, and other stakeholders
  • Developed and implemented various training programs for employees

Supply Chain Management

Responsible Procurement
  • Procurement of high-quality supplies and components for vessels
  • Use of low-sulphur fuel oil
  • Adoption of R-404A refrigerant for all onboard refrigeration and air conditioning systems

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 9001:2000

Sustainable Products & Innovation

  • Wind/water resistance reducing vessels
  • Energy-saving propellers
  • Double-hull tankers
  • Exhaust gas purification system

Awards & Recognition

  • Sixth Logistics Environmental Grand Prize
  • Special IR Prime Business Award
  • Nikkei Award for Annual Report
  • Disclosure Excellent Company Award
  • International Employers Award

Reporting Period: 2013-04 to 2014-03

Environmental Metrics

Scope 1 Emissions:16,919 thousand tons (FY2013)
Scope 2 Emissions:53 thousand tons (FY2013)
Scope 3 Emissions:9,960 thousand tons (FY2013)
Total Energy Consumption:246,543 thousand GJ (FY2013)
Water Consumption:706,618 tons (FY2013)
Waste Generated:135,504 tons (FY2013)

ESG Focus Areas

  • Environmental Protection
  • Safe Operation
  • Governance
  • Social Contribution
  • Human Resources Development
  • Compliance

Environmental Achievements

  • Reduced CO2 emissions by 2.2% compared to FY2012 and by 9.5% compared to FY2009.
  • Reduced NOx emissions by 2.2% compared to FY2012 and by 9.5% compared to FY2009.
  • Reduced SOx emissions by 2.2% compared to FY2012.
  • Delivered a large bulk carrier (Azul Brisa) with a high-efficiency waste heat energy recovery system, confirming a more than 5% reduction in fuel consumption.
  • Delivered the Emerald Ace, the world’s first hybrid car carrier, achieving zero emissions while at berth.

Social Achievements

  • Ran a crew training center in the Philippines, expanding jobs in the country.
  • Conducted on-site disaster relief operations and supported reconstruction in the Philippines after Typhoon Haiyan.
  • Participated in support projects in Somalia under the UN Development Programme, offering viable employment opportunities to Somali youth.

Governance Achievements

  • Established an advanced, highly transparent corporate governance structure with outside directors and an executive officer system.
  • Strengthened total risk control and compliance as a priority issue.

Climate Goals & Targets

Medium-term Goals:
  • Reduce CO2 emissions 11.5% per ton-mile by FY2016 compared to FY2009.
  • Reduce unit energy consumption at offices and domestic coastal vessels by 1% in FY2014 compared to FY2013.
Short-term Goals:
  • Achieve 'Four Zeroes' (an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents, and cargo damage)
  • Further reduce operational stoppage time per vessel (achieve 24 hours/year or less)
  • Further reduce operational stoppage accident rate per vessel (achieve 1.00 incident per vessel/year or less)

Environmental Challenges

  • MOL Comfort marine incident.
  • Cartel-related violations involving car carriers.
  • Compounded significant market exposure risks before the financial crisis.
Mitigation Strategies
  • Thorough investigation of the MOL Comfort incident and implementation of various safety measures, including strengthening hull structures of sister vessels.
  • Reinforcement of compliance through new measures, including the establishment of a Review Committee of Recurrence Prevention Measures for Anti-competitive Practices and a chief compliance officer.
  • Strengthening of total risk control under the new midterm management plan, “STEER FOR 2020”.

Supply Chain Management

Responsible Procurement
  • MOL Group Basic Procurement Policy (2012)

Climate-Related Risks & Opportunities

Physical Risks
  • Bad weather
Transition Risks
  • New environmental regulations
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Guidelines Version 3.1, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

  • Next-generation vessels (Senpaku ISHIN project)
  • PBCF (Propeller Boss Cap Fins)
  • Hybrid car carrier
  • Low-friction ship bottom paint
  • Optimal navigation support system
  • Optimal trim calculation system
  • Propulsion assist system using waste heat of main engine
  • Power Assist Sail
  • Methanol fueled vessels
  • LNG fueled vessels

Awards & Recognition

  • Dow Jones Sustainability Index (DJSI) Asia Pacific
  • FTSE4Good Global Index
  • Morningstar Socially Responsible Investment Index (MS-SRI)
  • Global 100 Most Sustainable Corporations in the World (2011)
  • SMBC Sustainability Assessment Loan (2013)
  • Award of Excellence from the Philippines Overseas Employment Administration (2010, 2013)
  • IR Prime Business Award Grand Prix (2005)
  • IR Prime Business Award (2008)
  • Nikkei Award (2004, excellence awards in 2005 and 2006)
  • TSE’s FY2009 Disclosure Award
  • 2012 Internet IR Commendation Award
  • DNV GL AS certification for LNG Carrier Seafarer Training Program (2007)
  • DNV GL AS certification for Seafarer Education and Training Management Program (2012)
  • DBJ Environmental Ratings (2011)
  • CDP Commendation for Carbon Disclosure Leadership Index (2012)
  • SMBC Environmental Assessment Loan top rating (2012)
  • Green Flag Award and Vessel Speed Reduction Award from the ports of Long Beach and Los Angeles (2013)