Climate Change Data

COSCO Shipping Holdings Co., Ltd.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:20,778,809 tCO2e/year (Container Shipping); 587,112 tCO2e/year (Port Business)
Scope 1 Emissions:20,764,380 tCO2e/year (Container Shipping)
Scope 2 Emissions:14,428 tCO2e/year (Container Shipping)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:79,177,312 MWh/year (Container Shipping); 2,265 Million megajoules/year (Port Business)
Water Consumption:293,578 tons/year (Freshwater Consumption); 285,297 tons/year (Seawater Desalination)
Waste Generated:5,990,357 tons/year (Hazardous Waste, Port Business)
Carbon Intensity:202.47 kg CO2e/million RMB revenue (Port Business)

ESG Focus Areas

  • Climate Change
  • Energy Efficiency
  • Emission Reduction
  • Water Resources
  • Waste Management
  • Biodiversity
  • Employee Safety
  • Employee Development
  • Supply Chain Sustainability
  • Community Involvement
  • Corporate Governance

Environmental Achievements

  • 86% of holding terminals obtained ISO 14001 certification.
  • Greenhouse gas emission reduction targets set and commitment to achieving carbon neutrality before 2060.
  • 91% usage ratio of low-sulfur oil.
  • Full coverage of shore power at container berths of domestic holding terminals.
  • 97.7% completion rate of “oil-to-electricity” for gantry cranes.
  • Trials of biofuels in OOCL and COSCO Shipping Lines fleets, reducing carbon emissions by more than 15%.

Social Achievements

  • No cases of child labor or forced labor.
  • Total number of employees: 31,510; New employees: 2,668; Turnover rate: 4.46%.
  • Various employee benefits implemented, including supplementary medical insurance and enterprise annuity system.
  • Three-level assistance mechanism for employees in need, with 5.757 million CNY worth of in-cash and in-kind distribution.
  • Active participation in community involvement activities, with 3,241 times of participation and 11,685 hours of community activities.

Governance Achievements

  • 50% of Board of Directors are independent non-executive directors.
  • Established a sound business ethics system with zero tolerance for corruption, bribery, and monopoly.
  • Formulated and updated Compliance Management Regulation, Legal Affairs Management Approach, and Reporting Management Regulation.
  • No major lawsuit related to corruption or unfair competition.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality before 2060.
Medium-term Goals:
  • By 2030, reduce greenhouse gas emission intensity of container shipping business by 12% compared with 2019.
  • By 2030, reduce greenhouse gas emission intensity of holding terminals by 20% compared with 2020.
  • By 2030, realize 100% harmless treatment of hazardous wastes in the holding terminals.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global climate change and its impact on shipping operations.
  • Extreme weather events affecting navigation and port operations.
  • Transition risks related to low-carbon economy, including regulatory changes and customer behavior.
  • Supply chain disruptions due to various factors.
  • Piracy risks affecting crew safety and operations.
Mitigation Strategies
  • Systematic identification and management of climate-related risks.
  • Implementation of energy-saving and emission-reduction measures.
  • Development of emergency response plans for extreme weather events.
  • Strengthened counter-piracy measures, including armed escorts.
  • Continuous improvement of supply chain management system and digital transformation.

Supply Chain Management

Supplier Audits: Annual assessment and rating of existing suppliers; spot checks on new suppliers.

Responsible Procurement
  • Strict supplier admittance requirements; environmental and social performance considerations; Commitment Letter of Anti-Commercial Bribery for Suppliers; Self-examination Questionnaire of Supplier’s Social Standards Compliance.

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Strong winds/cyclones
  • Ocean acidification
  • Sea temperature rise
  • Rising sea levels
Transition Risks
  • Changes in laws and regulations
  • Changes in customer behavior
  • Market risks (fuel price fluctuations)
  • Reputation risks
Opportunities
  • Development of biofuel-related products
  • Adoption of more energy-efficient transportation modes
  • Increased demand for shipping due to climate change impacts on other transport modes

Reporting Standards

Frameworks Used: GRI Standards, The Stock Exchange of Hong Kong Limited’s Guidelines for Environmental, Social and Governance Reporting, AA1000AS v3

Certifications: ISO 14001, ISO 45001

Third-party Assurance: CECEP (HK) Advisory Company Limited

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Methanol dual-fuel ships
  • Digital supply chain platform (Syncon Hub)
  • Intelligent cold chain platform (My REEFER)
  • Blockchain electronic bill of lading (IQAX eB/L)

Awards & Recognition

  • Hang Seng Corporate Sustainability Benchmark Index
  • Hang Seng ESG 50 Index
  • FTSE Developed ESG Index
  • Dow Jones Sustainability Asia Pacific Index
  • BOCHK Corporate Environmental Leadership Awards
  • Singapore Environmental Achievement Awards (SEAA)
  • CLS ESG Pioneer Enterprise Award
  • Best Capital Market Communication Award
  • Most Socially Responsible Award (ESG)