33
A.P. Moller - Maersk
Sustainability Report 2021
Environment | Responsible ship recycling
Introduction and strategy
Responsible ship recycling In spite of many shipowners having policies for responsible ship recycling, nearly 90% of the gross tonnage recycled is done under poor health, safety and environmental conditions. As global ship recycling volumes9 are set to nearly double by 2028 and quadruple by 2033 there is an urgent need to ensure that this growth in demand for ship recycling services will be met by suppliers with responsible practices. Over the past six years, Maersk has recycled 16 vessels in seven yards in Alang which is one of the three locations in South Asia where around 20%10 of the world's tonnage is sent for recycling. Playing the role of a catalyst, our engagement in
the area has driven a transformational change in the Alang ship recycling industry. Over 90 of around 120 operational yards in Alang have voluntarily invested to be compliant with The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), though this is still pending entry into force. Maersk vessels are recycled in accordance with the Maersk Responsible Ship Recycling Standard (RSRS), which is a stringent interpretation of the HKC and our responsible procurement programme. Progress and activities in 2021 In 2021, we placed two vessels for recycling with
Data and assurance
Why it matters
yards in Alang, and completed recycling of three vessels. We continued our audit regime that encompasses a screening of partners, full-time presence by Maersk staff on the ground and external verification audits. Despite COVID-19-related challenges in 2021, our yards engaged in safe, environmentally sound and RSRS-compliant recycling operations. As in previous years, external audits continued after landing a vessel in a yard, including one that we engaged with for the first time, until only one finding related to excessive overtime remained. This is a challenge in many industries and geographies with migrant workforces.
Only a small share of all vessels globally is recycled responsibly. The projected growth in demand for recycling capacity for very large vessels add to the urgency of creating new opportunities for responsible practice-driven, financially viable recycling. As a leader in the shipping industry, we have a responsibility to use our leverage to make a positive impact.
Ambitions Ensure safe and responsible ship recycling globally to the benefit of workers, environment, responsible yards and ship owners.
8.8
Alang impact assessment The study covers the period 2017-2021, during which 14 Maersk ships were responsibly recycled at six Alang yards engaging more than 1000 workers.
Our engagement Health and safety
Environment
Labour and human rights
Wider Alang development
Over 2,950 man-days of supervision
Over 82,000 m2 impermeable floor established at yards
Over 1,300 workers' homes made ILO-compliant
Over 62,200 consultations in Mobile Health Unit Over 5,800 laboratory tests
Over 4,350 trainings
20 heavy-duty cranes installed
Improved social security standards and working conditions
Over 40 Lloyd’s Register audits
Over 35 environmental tests
Over 35 Maersk responsible procurement audits
Over 5,000 workers part of health awareness training programme
Zero spills and hazardous materials
Improved living standards
Enhanced healthcare access
Minimised environmental impact
Improved labour management and social security standards
Improved health awareness and outcomes
The impact Zero fatalities Zero lost time injuries
Progress on ESG
incidents
9 Sustainable Shipping Initiative - Exploring shipping's transition to a circular industry, June 2021 (www.sustainableshipping.org/resources/shippings-transition-to-a-circular-industry/) 10 2021 Annual List of Ships Scrapped Worldwide (Excel), NGO Shipbreaking Platform, February 2022 (shipbreakingplatform.org/platform-publishes-list-2021/)
14.1
17.16
Targets • Create opportunities for responsible ship recycling of post-panamax ships globally • Work with industry stakeholders to support yards globally, including non-OECD countries, to achieve EUSRR compliance and thereby increase actual capacity on the EU List • Continue development of the wider Alang area • Actively support the Ship Recycling Transparency Initiative scale-up work and raise the profile of transparency • Identify Maersk's role in decarbonising the global steel value chain by leveraging ship recycling volumes in the long term
