Sustainability Report 2019
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SUSTAINABILITY REPORT 2019 19 MANAGEMENT TEAM Janne Eklöf Petter Ruda Technical Director Chief Financial Officer Ari Hurula Regional Director AtoB@C Finland Frida Rowland Business Unit Director AtoB@C Shipping Mikki Koskinen Managing Director Mikko Rausti Director, Sea Personnel and External Ship Management Toni Rönnberg Kirsi Ylärinne Commercial Director Business Unit Director Since 2.3.2020 ESL Shipping ESL SHIPPING SUSTAINABILITY REPORT 2019 3 OUR VISION SAFETY To be the most sustainable marine Our main task is to provide all our employees logistics partner for selected industries in a safe working environment and bring them Northern Europe and Arctic areas. safely back home. RESPECT OF RESPECT FOR THE CUSTOMER FIRST COLLEAGUES ENVIRONMENT Equal treatment of all em- We are working together with We provide our customer more ployees is a cornerstone of our clients in order to minimise diversified and flexible offering our company culture. the footprint caused by sea than ever before. transport. FACTS 2019 175.0 M€ 14.6 M€ 337 51 Net Sales Operating Profit Personnel Vessels 4 Introduction 5 About ESL Shipping & fleet overview 6 Highlights of 2019 8 Environmental Responsibility 10 ESL Shipping 70 years 14 Five-star rating for Viikki and Haaga 16 Social Responsibility 18 Safety is our first priority 20 House modules by sea 22 Economic Responsibility 24 Performance indicators 26 ESL Shipping Ltd is the parent company of the group and is referred as “group” in this report. Business unit ESL Shipping (“ESL Shipping”) comprises handysize fleet from 9,000 to 56,000 dwt. Business unit AtoB@C Shipping (“AtoB@C Shipping”) consists of 3,000- 5,000 dwt vessels. ESL SHIPPING SUSTAINABILITY REPORT 2019 5 WE NEED THEM ALL We will reach long-term emissions reduction targets but all alternative fuels are needed. Effects of climate change are clearly visible tion to the volume. Electricity and batteries are around us. Instead of clear white snow we have suitable for very short voyages, but are not the darkness and rainfall. Wintertime average tem- solution for deep sea trades. We will need several peratures have been several degrees above alternatives including biodiesel, LNG, biogas and normal, winds have been unusually strong and eventually synthetic gas produced from hydro- my mother in law’s garden in the west coast of gen and CO2 by using renewable electricity in the Finland is producing fresh sage in February. It future. should not be possible. In order to facilitate the essential research for The good news is that shipping is by far the most low emission solutions for the industry, the Inter- environmental friendly transportation mode. Our national Chamber of Shipping together with all company as well as the whole shipping industry other major shipping industry related organisa- is committed to reducing emissions. In 2019 we tions has proposed to establish a fuel levy sys- have proved the low emissions of our LNG-fuelled tem enabling collection of billions of dollars to a newbuildings, as we have performed a series of research fund. We hope this initiative will prove real life emission measurements onboard m/s successful. At the same time, we are concerned Haaga (see page 16). Lately it has been argued about development within the EU, where leading that LNG would not be an environmental friendly politicians are talking more and more about es- fuel, because an even more damaging green- tablishing a regional emissions trading scheme house gas, methane, would be released from for shipping. We need a global solution, not a lo- the engines. Our measurements show that the cal one that would only speed-up so called car- modern technology we use is fit for purpose and bon leakage, resulting from European industries the eventual methane slip is extremely small. It is losing their competitiveness and relocation of not entirely negligible but we are happy to report production to areas of less regulation and lower much lower, sustainable levels, than what is ar- costs. gued in some environmental reports. Our company’s main environmental target for This brings me to the most important point. The 2020 is to perform large scale trials using bio- IMO CO2-emissions reduction target for the en- diesel and biogas in our ships. We are in discus- tire shipping industry, 50% by 2050, is possible sions with various stakeholders regarding how only by using a wide range of alternative fuels. these trials could be performed in the best possi- We simply do not have one optimal solution for ble way, delivering best environmental value and the problem and all alternatives have their pros how the costs and benefits should be shared. We and cons. The raw material base for biodies- shall report further as we progress with our plans. el is limited and there is not enough availability for shipping. Hydrogen and ammonia are today Sincerely, produced mainly from fossil fuels, supply logis- Mikki Koskinen tics is largely missing and both are difficult to Managing Director store onboard due low energy content in rela- 6 ABOUT ESL SHIPPING & FLEET OVERVIEW ESL Shipping is the leading shipping company transporting dry bulk cargoes in the Baltic Sea. ESL Shipping Ltd is the leading carrier of dry bulk ESL Shipping is actively investigating different op- cargoes in the Baltic region. ESL Shipping’s compet- portunities to have a broader presence in growing itive edge is based on its ability to secure product markets in the Russian Arctic. The shipping compa- and raw material transportation for industries and ny will also continue its development activities to of- energy production all year around, even in difficult fer the most effective and environmentally friendly weather conditions. ESL Shipping Ltd has been in future transportation solutions in the markets. business for 70 years and is a subsidiary of Aspo Plc. Our vessels mainly operate in contract traffic in the Baltic Sea and in Northern Europe and also perform loading and unloading operations at sea as a spe- cial service. Transportation operations in the Baltic Sea and the North Sea are mainly based on long- term customer agreements and established cus- tomer relationships. During the review period, AtoB@C Shipping start- ed to offer port towing and related services at the Port of Raahe by using a tugboat acquired for this purpose. At the end of 2019, the shipping company’s fleet consisted of 51 vessels with a total capacity of 468,000 dwt. Of the vessels, 24 are wholly-owned (75% of the tonnage), two are minority-owned (2%) We acknowledge that our parent company Aspo and the remaining 25 are time-chartered (23%). Plc participates in the UN Global Compact, and we support the Ten Principles and advancement of the In 2019, the group concentrated on the integration of Sustainable Development Goals as well as broader UN goals. We consolidate our support for this initia- AtoB@C Shipping and to the launch of new ERP sys- tive fully under our parent’s commitment. Therefore, tem which covers all vessel and cargo operations in we do not participate in UN Global Compact acti- Finland and Sweden. Having all vessels in the same vities nor do we participate in activities of a Global system will improve the operational efficiency of the Compact Local Network. group. ESL SHIPPING SUSTAINABILITY REPORT 2019 7 ALL ON TC OWNED5/18 3,000 DWT-class 4,000 DWT-class 5 x 3,000 dwt 18 x 4,000 dwt Ice class 1A / 1B Ice class 1A Owned vessels All vessels on time-charter Calamar, Delamar, Optimar, Solymar and Sonoro ABOUT ESL SHIPPING & B A LT I C C A R R I E R FLEET OVERVIEW OWNED3/11 OWNED PUSHERS AND BARGES 5,000 DWT-class 11 x 5,000 dwt 2 x pusher Ice class 1A 4 x 13,500 dwt barge 1 x 9,000 dwt barge Owned vessels Ice class 1A Super Miramar, Reymar, Lunamar (49%), Costamar (49%) Pushers Rautaruukki & Steel OWNED OWNED PASILA-class EIRA-class 2 x 13,000 dwt 3 x 20,000 dwt Ice class 1A Super Ice class 1A Super Owned vessels Owned vessels Pasila & Tali Eira, Kallio, Alppila OWNED OWNED VIIKKI-class Powered by LNG ARKADIA-class 2 x 56,000 dwt 2 x 25,600 dwt Ice class 1A Ice class 1A Owned vessels Owned vessels Arkadia & Kumpula Viikki & Haaga 8 HIGHLIGHTS OF 2019 The year 2019 was characterised by the integration of AtoB@C Shipping to the group as well as celebration of 70th anniversary. ESL SHIPPING SUSTAINABILITY REPORT 2019 9 ABOUT ESL SHIPPING HIGHLIGHTS OF 2019 ENTRANCE TO A NEW MARKET In August, the group entered a new market by starting to offer harbour towage services in the Port of Raahe. The main logic behind the move is that approxi- mately 90 per cent of all ships in need of tugboat assistance in Raahe are the company’s own vessels. In addition, the size of ships calling Raahe has been increasing recently. This together with variating wind conditions affect the re- quired assistance service level. HAAGA REFLAGGED TO FINLAND 07 Haaga reflagged to Finland. After reflagging all ESL Shipping’s owned vessels are 3 under Finnish flag. FIVE-STAR ENVIRONMENTAL RATING FOR VIIKKI & HAAGA 26 Viikki and Haaga received the best five-star environmental rating from independent 4 Clean Shipping Index. Read more on page 16. ESL SHIPPING CELEBRATES 70 YEARS IN BUSINESS 28 ESL Shipping’s story began in June 1949 when the contract was signed to ac- 3 quire 1911-built steamer Marja-Liisa Nurminen. Read more on page 14. ALPPILA ACQUIRED 30 ESL Shipping acquired Alppila, a 20,000 dwt bulk carrier from SEB Leasing which 8 had owned the vessel since the delivery in 2011.