Sustainable Development Report 2016 Introduction 3
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SUSTAINABLE DEVELOPMENT REPORT for the year 2016 Index Page Introduction 3 Managing Director’s Message 8 Organisational and Operational Boundaries 10 2016 Highlights 11 Safety 12 Our People 17 Our Communities 27 Carbon / Environment 35 Organisational Profile and Governance 43 Abbreviations 56 GRI Assurance Statement 58 Data 61 Global Reporting Initiative (GRI) G4 Content Index 76 Contact 85 The China Navigation Company / Sustainable Development Report 2016 Introduction 3 This CNCo Sustainable Development (SD) Report for the calendar All data presented in this report cover entities External stakeholder engagement and operations within the CNCo group’s year 2016 is written in accordance with the GRI guidelines: G4 Operational and Organisational Boundaries We engaged our stakeholders using a targeted (Standard Disclosures – Core). A Materiality Assessment was (see page 10) and detail our status as at approach across our three business divisions 31 December 2016, unless otherwise stated. and support services. The responses were undertaken with internal and external stakeholders to determine analysed to help us focus our efforts on the which GRI Aspects are material to our business and reported. Material aspects material issues. The issues of most importance to our external stakeholders are listed below During 2016 we have worked hard to reach out (scores above 75%). All of these areas are to more internal and external stakeholders than being addressed by CNCo through a number of previously to raise awareness of the work we are initiatives covered in this report. doing in the area of Sustainable Development and to find out what is important (material) This feedback was collected through survey to them. Materiality for this report is based questionnaires in which respondents rated the External stakeholder engagement - on the responses collected from our internal various components that make an organisation Stakeholder categories stakeholders (shore staff and sea staff) and “Socially Responsible” as defined within ISO external stakeholders (suppliers and vendors, 26000:2010. Other customer and clients as well as our business 13% partners and other stakeholders). Supplier / Vendor 23% Areas of importance to our external stakeholders Business Partner 13% Delivering Zero Harm 91% Strong governance and business ethics 91% Long term partnerships 89% Labour practices and human rights 85% Customer / Client Environmental performance 76% 51% The China Navigation Company / Sustainable Development Report 2016 Introduction cont. 4 Internal Stakeholder engagement Areas of importance to our Shore-based staff who expect that CNCo: (issues with scores above 75%) 89% 86% 85% 79% 78% 77% Has clear and credible Requires an ethical Is a good and fair Does not cause Is an ethical and Has sound H&S communications supply chain employer pollution uncorrupt company practices The China Navigation Company / Sustainable Development Report 2016 Introduction cont. 5 The areas of importance to our sea staff are Given the very broad scope of topics, we Within this high level structure CNCo remains ISO 26000:2010, viz. Governance, Human listed below (scores above 75%). This shows continue to cover them in this SD report, as committed to transparently reporting its Rights, Labour Practices, The Environment, that all areas of Sustainability are of high with previous annual reports under four main performance in all the areas covered by the Fair Operating Practices, Consumer Issues and importance to our sea staff which is very sections: Safety, Our People, Communities Social Responsibility standard: Community Involvement and Development. encouraging to see. and Carbon/Environment. Areas of importance to our Sea staff who expect that CNCo: (issues with scores above 75%) Does not cause Respects its pollution communities 94% 85% Has sound H&S Is an environmental practices leader 92% 85% Is a good and fair Has clear and credible employer communications 89% 80% Is an ethical and Encourages social uncorrupt company responsibility 89% 79% Shows leadership Promotes environmental in reducing GHG sustainability 88% 78% Requires an ethical Has a good corporate supply chain philanthropy programme 85% 78% The China Navigation Company / Sustainable Development Report 2016 Introduction cont. 6 Value Chain analysis Build* Operate Transfer** Additionally, we have undertaken Value Chain analysis (see right). Economic Local economic development. Employment creation. Local economic development. Ethical governance at ship building site. Supply chain value and opportunities. Ethical governance at SRF site. Our Value Chain covers the three Facilitation of global economy and trade. Monitoring cost of sustainable ship recycling. distinct stages of our operations: Global and local economic development. Ethical governance. 1 Building the vessels 2 Operating the vessels, and then Environmental Drive demand for improved standards in the Drive demand for improved standards in the Drive demand for improved standards in the 3 Transferring the ownership of the industry. industry. industry. vessel whether for onward trading Positive step change in reducing environmental Improved performance (EEOI, biofuel, reduced Reduced environmental impact during or safe and environmentally sound footprint during design phase. emissions through operational efficiencies) recycling. recycling. Better management of construction phase. during operations. R&D/more environmentally-responsible R&D/more environmentally-responsible Reduced environmental impact and carbon options for reuse and recycling. We call this our BOT framework (Build/ features. footprint. Influencing the demand for sustainable ship Operate/Transfer) – see right for more Influencing the demand for sustainable Reduced waste to land and sea. recycling. details. It will help us to understand products/services. Influencing the demand for sustainable where our business is having a (positive products/services. or negative) impact. We will focus more on using this Value Chain structure over the next few years. Social Drive behavioural change and demand for Drive behavioural change and demand for Drive behavioural change and demand for improved standards in the industry. improved standards in the industry. improved standards in the industry. Improved working conditions at ship building Improved working conditions. Build capacity of Ship Recycling Facilities yards. Improved H&S practices. (SRF) in India. Improved H&S practices. Improved human rights and labour practices. Improved working conditions at SRF. Improved human rights and labour practices Employment creation and work opportunities. Improved safety standards at SRF. * The Buying phase is omitted due to Employment creation. Community development. Improved human rights and labour practices. the negligible value Improved social indicators and positive impact Employment creation. on overall wellbeing of workers. Improved social indicators and positive. ** The Transfer phase mainly focuses impact on overall wellbeing of workers. on ship recycling when we demand continuing responsibility post completion of sale rather than sale for onward trading at which point our liability and opportunity to add or Governance: Strong organisational governance/Leading by example to raise industry standards and further sustainable development destroy value ceases across economic, social and environmental areas. The China Navigation Company / Sustainable Development Report 2016 Introduction cont. 7 Strategic scorecard The strategic scorecard is revisited each year Reporting on progress is also done annually a number of indicators to make them more by CNCo’s senior leaders, facilitated through because of the longer term nature of the goals, specific and relevant. Our strategic scorecard is aligned with our partnership with the Forum for the Future however progress reports and measurements a number of areas of importance to our (FFF), a not-for-profit organisation which are tracked monthly throughout the year. As at stakeholders and provides direction and sets works globally with businesses to address the end of 2016, we were on track against the specific indicators (KPIs). sustainability challenges. majority of the goals. However, we revisited s OPERATIONAL WINNING TEAM INNOVATIVEWINNING CUSTOMER REWARDING ve i Develop an industry leading workforce SOLUTIONS PARTNERSHIPS EXCELLENCE and provide rewarding careers as an employer of choice RELATIONSHIPS Provide value enhancing ect Establish and enhance long-term, mutually beneficial Promotee innovation, operational excellence and provide safe, healthy solutionsEnhance for our customersrelationships and provide competitive, and secure work environments professional and innovative solutions torelationships our with our stakeholders Obj customers s l CAUSE ZERO HARM ACHIEVE NET ZERO EMBED “SEA CHANGE” TO EMPLOY THE RIGHT PEOPLE, SECURE A FULLY ALIGNED DELIVER MARKET LEADING ENGAGE IN STRATEGIC FOSTER SUSTAINABLE a ENVIRONMENTAL IMPACT OPTIMISE PERFORMANCE ACROSS ALL IN THE RIGHT JOB, IN THE RIGHT AND ENGAGED WORKFORCE SERVICES ACROSS PARTNERSHIPS WITH OUR KEY PARTNERSHIPS IN THE KEY BUSINESS UNITS PLACE, AT THE RIGHT TIME COMMODITY SECTORS CUSTOMERS AND SUPPLIERS COMMUNITIES IN WHICH WE Go ACROSS ALL BUSINESS UNITS OPERATE 2030 EEDI COMPLIANCE INDEX AT ≤ 80% ACHIEVE GOLD STANDARD FOR PROCESS ACHIEVE ANNUAL STAFF RETENTION ALL BUSINESS UNITS ARE IN THE TOP DESIGN 5 COMMODITY- SPECIFIC KEY CUSTOMERS TO OPERATE DEMONSTRATE THAT ALL RELEVANT LTIFR AT ZERO FOR ALL RELEVANT LINER