SUSTAINABILITY REPORT 2020 2 OCEAN NETWORK EXPRESS (ONE)
3 About This Report 4 Message from our CEO Table of 6 Our COVID-19 Response Contents 8 2019 Key Highlights
10 About ONE 10 • Company profile About • Value Chain of our Business ONE • Scale of Operations • Our Core Values • Memberships, Associations, Certificates and Awards 16 Approach to Sustainability • Sustainability at ONE • Materiality assessment • Stakeholder engagement • Our Commitment to the United • Managing Sulphur Oxides (SOx) Nations Global Compact (UNGC) Emissions and Sustainable Development • Marine Pollution and Conservation Goals (SDGs) • Recycling and Disposal of Materials 24 28 Environment Operational Excellence • Our Environmental Policy and • Innovation and Digitalization Management System • Customer Experience • Climate Change (including GHG and • Operational Efficiency other emissions) • Cargo and Container Safety
32 24 Social Environment • Taking Care of Our Employees • Human Rights and Labour Practices • Talent Management • Employee Health, Safety and Well-being • Supporting Local Communities • Free Transportation • CSR and Community Engagement Activities SUSTAINABILITY REPORT 2020 3
6 About This Our COVID-19 Response Report
This is Ocean Network Express’s (ONE) third annual sustainability report and communicates our progress towards implementing our 28 sustainability commitments. It Operational is the second year we follow Excellence the disclosures set out by the Global Reporting Initiative (GRI) Standards, as the basis of our annual reporting. The report has been prepared with reference to the GRI Standards. For a full list of disclosures referenced in this report, please refer to the GRI Content Index on page 43.
SCOPE AND BOUNDARY This report contains information pertaining to the period 1st January 2019 to 31st December 2019, covering our liner network services, provided through 211 local offices in 106 countries, five regional headquarters and our Global 38 Headquarters (GHQ). The performance data included in Governance this report does not cover our inland services nor terminal • Ethical Business Conduct operations. • Corporate Governance EXTERNAL ASSURANCE • Compliance This year, we have sought to provide a deeper understanding into our sustainability context and performance, referencing • Risk Management additional GRI disclosures as we work towards reporting in accordance with the GRI Standards: Core option. We have not sought independent external assurance of the information 43 contained in this report at this time but will explore the GRI Content Index opportunity to do so in the coming years. CONTACT 49 We value your opinion to help us improve and progress in our United Nation Global Compact COP approach to sustainability and sustainability communication. We welcome your comments and feedback which may be directed to: [email protected] 4 OCEAN NETWORK EXPRESS (ONE) Message from our CEO
2019 was our second year of operations since we launched officially in April 2018 and we focused our efforts on integrating sustainability within our wider business strategy and objectives.
Dear stakeholders, 2019 was our second year of taking into account the views operations since we launched of our valued customers. With I am pleased to present Ocean officially in April 2018 and a constantly evolving external Network Express’s (ONE) third we focused our efforts on landscape, we recognize the sustainability report. It reflects integrating sustainability need to regularly review both our continued commitment to within our wider business current and emerging issues responsible and sustainable strategy and objectives. for any shift in importance and business amidst these The development of our impact on the business, society unprecedented times, as one sustainability strategy was and environment. Building of the major container shipping key to this progression in on previous assessments, companies in the world. our sustainability journey. We we identified eight material defined what sustainability topics that form the focus our means to us through a set of strategy and reporting, and an four clear priorities: additional seven topics that are still of importance to our 1. Environment; business and stakeholders 2. Society; to warrant disclosure as appropriate. We discuss these 3. Governance; and topics in detail in subsequent 4. Operational Excellence. chapters of our report.
This will guide us in embedding Ensuring high levels of responsible and sustainable service quality and customer practices throughout the satisfaction is key to our business and help us work success in this competitive towards our vision to be industry. In 2019, we set up a sustainable and resilient, Digital Strategy Committee to and a trusted partner for our drive the ONE Digitalization customers in delivering global roadmap and initiatives, shipping solutions. aimed at achieving new levels of operational and service We also reviewed the excellence and efficiency that assessment of our most can deliver greater value to our material sustainability topics, customers through innovation. SUSTAINABILITY REPORT 2020 5
We also launched several up to respond to this regulation. the shipping sector plays initiatives to enhance customer We are committed to prevent in the global economy was experience, such as our pollution that may result accentuated, as it kept up the Live Chat function as well from our ship operations and supply of essential goods to as a global customer continue to enforce the ONE where they are most needed. satisfaction survey. Vessel Quality Standard on all We will undoubtedly play a role our chartered vessels to ensure in the post-pandemic recovery We continue to push ahead they meet safety requirements to keep trade moving between with several initiatives to for preventing accidents. nations. It is more important address climate change, which than ever that we operate in remains a key challenge for Another priority for us is a responsible and sustainable the shipping industry. These looking after the wellbeing manner, to increase resilience include measures to improve of our employees and the in a post-COVID-19 world. energy efficiency, such as communities in which we retrofitting our propellers to operate. We not only seek Looking ahead, we will stay boost propulsion efficiency, to provide a safe work strongly committed to the and to reduce CO2 emissions, environment but a respectful course, steered by our Core such as slow steaming and and conducive place where Values, while continuing to route optimization. This has diversity is embraced, and strengthen our position on allowed us to reduce our GHG employees can grow. We key sustainability issues and emission intensity and to stay continue to support local communicating our progress on track with our ambitious communities through our openly and transparently. target of 50% reduction of CO2 corporate social responsibility I hope this report provides emissions (in gram/teu-km) by activities, with a focus on you with useful and 2050 from a 2018 baseline. environmental, children and relevant information on our education, as well as disaster sustainability commitments and As of end 2019, ONE is fully relief through the provision of activities. We look forward to compliant with the MARPOL free vessel transportation. continuing this journey with 2020 global sulphur limit set your support and to grow our CO2 emissions by the International Maritime This year, the world was future involvement together. reduction Organization (IMO), thanks to upended by the COVID-19 Sincerely, target the active preparation and pandemic, which took a heavy responses by our toll on global supply chains Jeremy Nixon 50% cross-functional taskforce set and trade. The vital role that Chief Executive Officer by 2050 6 OCEAN NETWORK EXPRESS (ONE) Our COVID-19 Response
The COVID-19 pandemic has caused massive disruption to business-as-usual and to people’s lives and livelihoods. As ONE, we managed to adapt relatively seamlessly through our Business Continuity Plan and new ways of working.
Keeping the from juggling both work and We implemented virtual business running family priorities. One of the gatherings for ONE colleagues We have set up our Business ways we have tried to address to stay connected to one Continuity Management this is to adopt a combination another at GHQ, RHQ and local System (“BCMS”) since day of remote and on-site working levels. In GHQ, we called it the one, and it has enabled the globally. For example, in STAY CONECTed programme continuity of our core business Singapore, we ensure “safe and we shared WFH functions during this period. distancing” in the office and experiences during COVID-19 Our Crisis Management implemented split teams and and brainstormed ideas to Committee has also been staggered working hours, to work efficiently together. activated to implement allow employees the option measures to minimize impact of working at the office if In our Global Head Quarters to the Company, including they choose to. Employees (GHQ), employees also sharing information about who work from the office received specially prepared operational disruption such are required to follow safety care packs consisting as yard congestion, ship measures including mandatory reusable masks, hand sanitizer inspection, port control, inland mask wearing, temperature and snacks, as a token of traffic situation among relevant self-screening twice daily and appreciation from the company parties across the regions. disinfection of common areas for their hard work to keep the after use. business operations running. With many of our business processes digitalized and standardized across regions, such as booking, documentation, customer service, stowage planning, etc., we were able to transition smoothly to working from home (WFH) for the majority of employees.
Ensuring our people stay safe and connected But WFH has its downsides too and we are aware that employees may experience heightened feelings of workplace loneliness or stress SUSTAINABILITY REPORT 2020 7
Supporting our local communities We continue to support our local communities in the fight against COVID-19, through different ways.
ONE donated 11 containers to the Red Cross in Italy, one of the hardest-hit countries, for storage and transportation of medical equipment and medication.
In Singapore, we donated to The Mission to Seafarers to support them in caring for the welfare of those at sea during this ONE donated 1,000 single-use challenging time. masks to a children’s home in Gdańsk, Poland.
Our employees at ONE Brazil banded together to raise funds ONE France supported Le Chat for buying basic food baskets for Bleu Restaurant in Le Havre to slum residents in Sao Paulo. offer free lunches to healthcare workers in local hospitals.
Our ONE Uruguay colleagues also donated essential food and hygiene products to a local NGO who cares for children at risk.
We are committed to play our part not only as a business but as a member of society, and we will continue to support efforts to combat the spread of COVID-19 while delivering essential container shipping service around the world. We can overcome this crisis together. As ONE, we can! 8 OCEAN NETWORK EXPRESS (ONE) 2019 Key Highlights
Protecting the Environment
3% 100% reduction in GHG emissions compliant with MARPOL 2020 intensity from 2018 Global Sulphur Limit
significant spillsZero reported by our vessels
Driving Operational Excellence
Launched our Digitalization Roadmap with formation of the Digital Strategy Committee (DSC)
Implementation of several Digitalization initiatives for customer service enhancement
Live Chat function across Customer Relationship 10 countries to handle Management system e-commerce enquiries
ONE’s container vessels “NYK SWAN” and “MOL TRIBUTE” achieved highest productivity records at PSA Singapore, our Terminal Partnership Program partner SUSTAINABILITY REPORT 2020 9
Taking Care of Our People
14.9 average training hours Zero work-related per employee globally fatalities recorded
Supporting Local Community
employees1360 volunteering22,830 hours volunteered
Achieved
community41 EcoVadis Gold Medal engagement activities for CSR rating 10 OCEAN NETWORK EXPRESS (ONE) About ONE
Ocean Network Express (ONE) is a container shipping company which offers an extensive liner network service portfolio covering more than 120 countries internationally.
Company Profile owns a 38% holding in ONE Reefer containers capable of Ocean Network Express while MOL and K Line own 31% maintaining the temperature of (ONE) is a container shipping each. As a new player in the frozen or chilled cargo, Flat Rack company which offers an shipping industry, we will ensure containers for heavy lift, over- extensive liner network service the legacy of our three founding height and/ or over-width cargo portfolio covering more than companies, who historically and Open Top cargo for over- 120 countries internationally. prided themselves in process height and/or lengthy cargo. ONE was established through excellence to deliver customers We ship a wide range of goods, the formal integration of the superior service quality, lives on. with major categories including container shipping services consumer products, machinery, of three Japanese shipping Value Chain of our auto-parts, electrical goods, companies Kawasaki Kisen Business industrial and construction Kaisha, Ltd. (K Line), Mitsui Our shipping services goods, chemicals, food products, O.S.K. Lines (MOL) and Nippon include capability to transport wood products, agricultural Yusen Kaisha (NYK) and began container types such as Dry goods, metal products, and operations on 1 April 2018. NYK containers for general cargo, pharmaceutical products.
ONE’s Value Chain
Research & Development Procurement Production Sales Shipping Services
E-commerce Documentation, Utilise resources Managing ocean platform vessel and to determine Obtaining vessels, services and management, Vessels cargo tracking. market demand containers, fuels inland services, publicity and and Cargo E-commerce and supply, vessel terminal, inland e-commerce outreach, space operation functions, freights specifications and supply chain and platforms and confirmation and settlements and market growth IT infrastructure sales agencies booking sales support SUSTAINABILITY REPORT 2020 11
Our Regional and Global Headquarters
RHQ London
RHQ RHQ Richmond Hong Kong
GHQ/RHQ Singapore
RHQ Sao Paulo
All vessels are chartered closely with the ship owners to As of end 2019, our fleet size vessels, the majority from our ensure safe operations. stood at 1,593,793 Twenty- parent companies, which means foot Equivalent Unit (TEU), that we do not own any of the Scale of Operations making us the 6th largest in vessels. As a ship operator, ONE ONE operates a service the world. Operations are is responsible for the logistics, network covering more than performed through a fleet of including time and route 120 countries. Supported by 224 vessels with a service scheduling, providing access a workforce of approximately network covering over 130 to service maps, and ability to 8,000 employees, including services loops around the service track cargo. We work closely offshore, we have established world. Our fleet includes 30 network with the vessel owners who are 211 local offices in 106 countries super-large ships, defined covering responsible for the maintenance and five regional headquarters as container-ships with more than of vessels and for the crew on (RHQ) in Hong Kong, Singapore, 20,000 TEU and 14,000 TEU board. Our Marine Safety and United Kingdom, United States capacity, one of the largest Quality (MSQ) Department works of American (USA) and Brazil. in the world. countries120
US$ Fleet of 11.7Billion 7,680 in sales employees vessels224
Serving more than 14,000 1,593,793 257 customers in TEU capacity vessel port calls different 63 countries 12 OCEAN NETWORK EXPRESS (ONE)
Our Core Values ONE has eight Core Values, underpinning our vision, which guide the work that we do. These values are embedded in our Business Credo, Code of Conduct and other policies.
LEAN & AGILE BEST PRACTICE QUALITY Breaking through conventions Continuing to improve ourselves Pursuing the best quality to make ideas into reality based on the knowledge that always exceeds quickly cultivated internally and externally customer expectations to deliver the best services
INNOVATION TEAMWORK CHALLENGE Delivering services that Respect individual diversity Exploiting individual strengths contribute to the customer’s to build a team that can work and continuing to meet business through self innovation together to create new value challenge without fear of failure and creativity
CUSTOMER RELIABILITY SATISFACTION Delivering stable, Focus on customer needs well sustainable and and deliver satisfaction that professional services exceeds expectations SUSTAINABILITY REPORT 2020 13
ONE recognizes our role ONE’s Business Credo in providing safe and reliable services while 1. GOOD FAITH BUSINESS ACTIVITIES meeting our customers’ We respect national competition laws, engage in business practices that expectations and are fair, transparent, freely competitive, and appropriate, and do not tolerate maintaining their trust. bribery or corruption in any form. At the helm of our brand, 2. ENVIRONMENTAL AND SAFETY INITIATIVES ONE’s Business Credo We undertake initiatives to enhance safety and to preserve the marine enshrines eight principles environment and natural ecosystems, and seek to develop and refine safe, reflecting how we want to environment-friendly transportation technologies. do business. 3. ENHANCED SECURITY We have established strong security measures to prevent the disruption and abuse of international logistics networks, prohibiting any type of illegal activity and the unauthorized access and leakage of information.
4. COMPLIANCE WITH LAWS AND ORDINANCES, RESPECT FOR HUMAN RIGHTS We recognize our role in society and act in a manner that is fair and just by complying with national laws and ordinances and international norms. Corporate activities should adhere to social mores, respect human rights, honour local customs and practices, and address the concerns and interests of stakeholders.
5. EXCLUSION OF ANTISOCIAL ACTIVITIES We resolutely stand against all antisocial forces and Organizations that threaten the order and safety of civic life.
6. DISCLOSURE OF INFORMATION AND COMMUNICATION WITH SOCIETY We disclose corporate information in a proactive and fair manner, rigorously protect and manage the privacy and personal information of our customers, employees and everyone involved in our business activities.
7. SOCIAL CONTRIBUTION ACTIVITIES We proactively contribute to social activities as a good corporate citizen.
8. PRESERVATION OF FAVOURABLE WORK ENVIRONMENTS We respect the diversity, individuality, and humanity of employees and facilitate the activities of a diverse workforce. We make every effort to preserve favourable work environments. 14 OCEAN NETWORK EXPRESS (ONE)
Memberships, Associations, Certificates and Awards
At ONE, we recognize that collaboration and working in partnership with other industry players is important in achieving our sustainable and responsible business ambitions. We are proud to take part in initiatives led by the following organizations whom we believe share our objectives and values of a sustainable shipping industry.
CLEAN CARGO: GLOBAL COMPACT NETWORK LLOYD’S LIST ASIA A business-to business SINGAPORE (GCNS): PACIFIC AWARDS: leadership initiative that involves The local chapter of the United This award recognizes major brands, cargo carriers, Nations Global Compact containerships owners or and freight forwarders dedicated (UNGC). As a member, ONE operators that have best to reducing the environmental endorses the ten UNGC responded to the changing impacts of global goods Principles in the areas of commercial and regulatory transportation and promoting Human Rights; Labour; landscape through new ocean responsible shipping. Environment; and shipping configurations and Anti-corruption. port pairings, simplified booking and documentation processes, action to reduce ship pollution and other innovations that have made the supply chain more efficient. ONE emerged as winner of the prestigious Lloyd’s List “Excellence in Container DIGITAL CONTAINER SHIPPING Shipping” Asia Pacific award. ASSOCIATION (DCSA): A non-profit organization established to further GLOBAL MARITIME FORUM: digitalization of container An international non-profit shipping through technology organization committed to standards. ONE, A.P.Moller– promoting the shipping industry. Maersk, Hapag-Lloyd and MSC ONE is a signatory to the are founding members. Global Maritime Forum’s Call for Action on the decarbonization SINGAPORE SHIPPING of shipping in line with ASSOCIATION (SSA): the International Maritime Singapore’s national trade Organization’s (IMO) strategy. association to serve and promote the interests of its members and to enhance the competitiveness of Singapore as an International Maritime ECOVADIS: Centre. As a member, ONE A trusted provider of business actively participates in forums, sustainability ratings, intelligence feedback and dialogue and collaborative performance ISO14001 (ENVIRONMENT sessions with key regulatory improvement tools for global supply MANAGEMENT SYSTEM): agencies and international chains. ECOVADIS awarded ONE An international EMS standard maritime organizations. with a Gold medal for CSR rating set by the International in November 2019, measuring Organization for Standardization the quality of a company’s CSR (ISO). We have received our management system – through its ISO14001:2015 certificate in 2018 policies, actions, and results. from ClassNK. SUSTAINABILITY REPORT 2020 15
TREASURY MANAGEMENT INTERNATIONAL (TMI) WORLD SHIPPING COUNCIL ONE: AWARDS FOR INNOVATION AND EXCELLENCE: A trade group representing the This Award recognizes best practices and international shipping industry. As innovations in treasury management. ONE was a member, ONE collaborates with awarded “Best Digital Project” for its transformation other companies and governments to of three individual treasury departments into a single develop actionable solutions for global efficient structure in just 9 months, as well as ONE’s transportation issues and promote determination to employ the latest technologies. environmental stewardship. 16 OCEAN NETWORK EXPRESS (ONE) Approach to Sustainability
As the sixth largest container carrier in the world by fleet size, we are proud of our unique role in connecting people with new experiences, cultures and ideas from around the world.
Sustainability at ONE As the sixth largest container These priorities are based Shipping is the moving force carrier in the world by fleet on the material sustainability behind the global economy, size, we are proud of our role topics that drive long-term making intercontinental trade, as a globally essential service value for our business and our the bulk transport of raw in connecting people with stakeholders. Underpinning materials, and the import/ new experiences, cultures our priorities, is our Business export of affordable food and and ideas from around the Credo, which forms the manufactured goods possible. world through our network. core of ONE’s commitment The international shipping This is why we have made it to embedding responsible industry is responsible for the our vision to be sustainable business practices. carriage of around 90% of and resilient, and a trusted world trade.1 partner for our customers in delivering shipping solutions. ONE recognizes that Four areas of priority sustainable transport is one We have focused our efforts of the major challenges of in integrating sustainability 1 Environment our times. While shipping is within our wider business considered relatively safe and strategy and objectives. clean, compared with other As part of this process, we 2 Social forms of commercial transport, defined what sustainability the industry still has significant means to us through Governance impacts on the environment four areas of priority: 3 and society that need to be 1. Environment; managed. As cargo continues Operational 2. Social; 4 to grow, so does the industry’s 3. Governance; and Excellence impacts and responsibilities. 4. Operational Excellence
1 https://unctad.org/en/PublicationsLibrary/rmt2019_en.pdf SUSTAINABILITY REPORT 2020 17
Our Sustainability Strategy
To be sustainable and resilient, and a trusted partner for our customers in delivering global shipping solutions.
OUR SUSTAINABILITY PRIORITIES
Operational Environment Social Governance Excellence
We protect the We nurture and empower We uphold the highest We drive operational environment and people in our business standards of ethical excellence through ecosystems we all and the communities we business conduct and digitalization, to enhance depend on by taking operate in, by managing corporate governance, customer experience and action on climate change, our talent, protecting in compliance with ensure safe operations. preventing marine their health and safety, regulation and our own pollution and using respecting their human internal policies. resources responsibly. rights and supporting local communities.
Sustainability Governance Our commitment to sustainability stems from the top. The Board of Directors (the Board) at Global Headquarters (GHQ), which includes our Managing Director and CEO, drives the company’s sustainability and growth strategy. The Board is supported by the Business Planning Team who initiates and coordinates sustainability initiatives across the company at GHQ, Regional Headquarters (RHQs) and local offices. 18 OCEAN NETWORK EXPRESS (ONE)
Materiality Assessment This year, we have prioritized reflected in our results. We In 2020, we worked with engagement with three followed a four-stage process specialist sustainability key stakeholder groups: which included: consulting firm Corporate Employees, shareholders 1. Context and Topic Citizenship to conduct an and customers. Since Identification; assessment of our most customers had not been 2. Surveys; material sustainability topics. consulted on materiality in 3. Interviews; and This exercise built on from previous years, we wanted 4. Analysis and Validation our previous assessments. to ensure their views were
Four-stage process
1 2 3 4
Context Analysis and and Topic Surveys Interviews Validation Identification
Conducted desk- Launched an online Conducted a series Analyzed and based research and a survey for internal and of interviews with presented the findings benchmarking exercise to external stakeholders customers and and results to the senior identify relevant industry to prioritize the shortlist shareholders to gather management team at trends and sustainabliliy of sustainability topics further insights into the ONE, before finalizing issues, developing a identified in the sustainability context of the list of material shortlist of sustainablity previous stage. ONE and the industry. sustainability topics. topics to be prioritized.
To ensure we remain on the As 2020 has seen right path, it is key to keep unprecedented changes an eye on the horizon and globally as a result of the understand which issues are COVID-19 pandemic, we will current and which ones are be reviewing our priorities for arising. Going forward, we the next reporting cycle, to are committed to conducting determine whether any new a light-touch review of our material topics have emerged, material topics every year, as well whether we have with more comprehensive seen a shift in the importance assessments undertaken and impact of the topics COVID-19 pandemic every few years. currently identified. SUSTAINABILITY REPORT 2020 19
Direct Impact: Indirect Impact: Topics ONE can directly Topics ONE can indirectly Our Material influence and manage influence and manage, working with partners Sustainability Topics including vessel owners and other stakeholders along the value chain
Material Topics: Sustainability topics that are of high importance to the business and medium to high importance to stakeholders. These form the focus of ONE’s strategy and reporting.
Ensuring high-levels of service Customer quality and reliability to maintain Experience customer satisfaction and loyalty.
Preventing ocean pollution and Marine protecting marine life through Pollution and the responsible management of Conservation ballast water and the prevention of spills/leakages.
Ensuring the safe operation Container and of ships and the safe handling Cargo Safety of containers.
Employee Protecting the health, safety and Health, Safety wellbeing for our employees and Wellbeing and contractors.
Ensuring adequate systems and Ethical processes are in place to uphold the highest standard of ethical Business business conduct, including Conduct measures to promote anti- corruption and fair competition.
Putting measures in place to reduce energy use and Climate greenhouse gas (GHG) emissions, Change including SO2 and NOx, across our operations. Building resilience against climate change risks.
Engaging in industry collaboration and partnerships for innovation Innovation and in marine technology and Digitalization streamlining our operations through digitalization.
Attracting highly-skilled individuals, providing training and Talent development opportunities and Management promoting a diverse and inclusive workplace, to build a high- performing shipping company. 20 OCEAN NETWORK EXPRESS (ONE)
Direct Impact: Indirect Impact: Topics ONE can directly Topics ONE can indirectly influence and manage influence and manage, working with partners including vessel owners and other stakeholders along the value chain
Relevant Topics: Sustainability topics that are of medium importance to the business and of sufficient interest to stakeholders to warrant disclosure as relevant.
Mitigating the environmental, social and governance risks Supply Chain in our supply chain through Management responsible procurement practices.
Supporting communities in need, through education Supporting Local programmes, logistical support Communities during natural disasters, and environmental awareness.
Respecting human rights and having zero tolerance for all Human Rights and forms of child labour, forced Labour Practices labour or other forms of exploitation.
Minimizing the amount of Recycling and waste generated and ensuring the safe disposal of hazardous Disposal of materials, including during the Materials dismantling of ships at the end of their lifecycle.
Managing increasingly Responsible complex tax laws and ensuring Tax Practices transparency on our approach to tax payments.
Combatting human trafficking and the illegal trafficking of Illicit Trade goods such as narcotics and endangered wildlife.
Adopting proper measures to prevent attacks and the Piracy and hijacking of our commercial Security vessels as well as protecting our business systems through cyber security. SUSTAINABILITY REPORT 2020 21
Stakeholder Our stakeholders have been Throughout the year, we Engagement identified and prioritized make a conscious effort to An important tenet of our based on the impact our engage with our stakeholders sustainability strategy is activities have on them, their through a variety of channels. being accountable and knowledge of the sector and ONE material topic owners responding to stakeholders’ ONE, as well their importance formally and informally expectations in a timely and to the success of our business. engage with external transparent manner. We They include: stakeholders from each of also value stakeholders’ y Customers these groups as part of their opinion and feedback to y Employees daily work. The table below ensure we are continuously y Local Community summarizes some of the key improving our practices y Shareholders engagements that took place and performance. y Suppliers during 2019:
Stakeholder Engagement Method and Topics and ONE’s Group Frequency Concerns Raised Response • Materiality survey and interviews • Cargo and data • Shared ONE’s policy on (every 2-3 years) security data security • Customer feedback forms • CO2 Emissions • Disclosed CO2 emissions (annually) • Traceability, track and and reduction strategy Customers • One-on-one communication trace, and just-in-time • Implemented end-to-end from sales team through emails, shipment cargo tracking system meetings, etc. (regularly) with customer visibility. • Sustainability Report (annually)
• Materiality survey and interviews • Equal opportunities • Reiterated fair appraisal (every 2-3 years) • Training and process • ONE’s internal online portal development • Conducted a wider (ongoing) and richer variety of • Facebook Workplace platform - educational and training Employee internal social network (ongoing) courses • ONE Townhall session (annually) • Employee appraisals (annually) • Training and development programmes (ongoing) • Partnerships with Non-Profit • Promote education • Continued to participate Organizations (ongoing) • Create environmental in community • Community engagement and CSR awareness engagement activities Local programmes (regularly) • Requests for free freight (Details can be found community transportation and on the ONE CSR fundraising support homepage).
• Materiality survey and interviews • Timely information on • Provided timely (every 2-3 years) business performance, and comprehensive • Sustainability Report (annually) strategy, operating information as requested Shareholders • Updates through email and landscape and meetings (as needed) business outlook
• Corresponding email exchange • Operational matters • Communicated with major suppliers (ongoing) and business issues ONE’s Supply Chain • Sustainability Report (annually) Management Guidelines Supplier to suppliers and encouraged them to adopt them 22 OCEAN NETWORK EXPRESS (ONE)
Our Commitment to the incorporating the ten principles agreed roadmap to build a United Nations Global in the way we do business. better and more sustainable Compact (UNGC) and As an active participant of the future by 2030. ONE believes Sustainable Development UNGC, this report also serves that businesses play an Goals (SDGs) as our Communication on important role in contributing The UNGC calls on all companies Progress Report (COP). Please to and achieving the SDGs. to align their practices with ten refer to the UNGC reference We have mapped our material universally accepted principles in table for our implementation of sustainability topics in the table the areas of human rights, labour, the ten principles of UNGC on below against all 17 goals. In environment and anti-corruption, page 49. addition, we have also mapped and to take action in support our business activities and of the SDGs. Progressively, we Adopted in 2015, the SDGs initiatives against the goals and continue to support the UNGC by provide an internationally- their underlying targets.
SDG Material Topics Example of activities and initiatives
ONE conducts educational activities as part of our 4.4 By 2030, substantially increase the CSR and community engagement initiatives, such number of youth and adults who have • Supporting as hosting student groups to understand more relevant skills, including technical and local about the container shipping business, Adopt-a- vocational skills, for employment, decent jobs communities School programme. and entrepreneurship For more details, please see the Social chapter, on page 32.
We have anti-discrimination and harassment 5.1 End all forms of discrimination against all • Talent policies in place, as well as a 24/7 whistleblowing women and girls everywhere management hotline to report any incident of discrimination.
To improve our energy efficiency and reduce our CO2 emissions, we have implemented measures such as: • Ensuring optimum scheduling and shorter port stay times to increase trip efficiency 7.3 double the global rate of improvement in • Climate • Slow steaming energy efficiency by 2030 Change • Retrofitting vessels with propellers that improve propulsion efficiency For more details, please see the Environment chapter, on page 24.
8.7 Take immediate and effective measures to secure the prohibition and elimination of the • Human Rights Respect for human rights, including elimination worst forms of child labor, eradicate forced of forced and child labour, is incorporated into labor, and by 2025 end child labor in all its and Labour our Supply Chain Management Guidelines, which forms including recruitment and use of child practices all our business partners, including suppliers are soldiers • Employee requested, to adhere to. 8.8 Protect labour rights and promote safe health, safety We implement OHS policies and procedures and secure working environments for all and wellbeing in accordance with all applicable laws and workers, including migrant workers, in regulations in the jurisdictions in which we particular women migrants, and those in operate. precarious employment
9.5 Enhance scientific research, upgrade the • Innovation and technological capabilities of industrial sectors Digitalization ONE invests in implementing digitalization in all countries, in particular developing to deliver new value for the market and our countries, including, by 2030, encouraging • Piracy and customers. innovation and substantially increasing security the number of research and development For more details, please see the Operational workers per 1 million people and public and • Customer Excellence chapter, on page 28. private research and development spending experience SUSTAINABILITY REPORT 2020 23
SDG Material Topics Example of activities and initiatives
10.3 Ensure equal opportunity and reduce inequalities of outcome, including through • Talent We work to ensure fair personnel treatment in eliminating discriminatory laws, policies employment, personnel administration, wages, and practices and promoting appropriate management training and promotion. legislation, policies and actions in this regard
12.4 By 2020, achieve environmentally sound ONE works closely with owners of the vessels management of chemicals and all wastes we charter to ensure relevant regulations are throughout their life cycle in accordance • Supply chain complied with - we arrange for MARPOL (IMO) with agreed international frameworks and compliance checks on waste management to be significantly reduce their release to air, water management conducted on board our chartered vessels. and soil to minimize their adverse impacts on • Recycling and Recycling bins are provided at our office buildings human health and the environment disposal of and e-waste such as batteries and laptops are 12.5 By 2030, substantially reduce waste materials disposed through licensed recycling companies. generation through prevention, reduction, For more details, please see the Environment recycling, and reuse chapter on page 27.
13.1 Strengthen resilience and adaptive capacity to climate related hazards and • Climate As part of our CSR programmes, we hold natural disasters in all countries change environmental-related activities such as beach 13.3 Improve education, awareness raising • Supporting and park cleaning, collection of recyclables and and human and institutional capacity on local planting to raise awareness on environmental climate change mitigation, adaptation, communities issues among our employees. impact reduction, and early warning
14.1 By 2025, prevent and significantly reduce Vessels chartered by ONE will undergo a periodic marine pollution of all kinds, particularly from Vessel Quality Standard (VQS) inspection to land-based activities, including marine debris ensure their Safety Management System (SMS) and nutrient pollution meets our requirements to prevent accidental 14.2 By 2020, sustainably manage and protect spills and operational discharge. marine and coastal ecosystems to avoid • Marine ONE has committed to medium and long-term significant adverse impacts, including by Pollution and reduction targets for CO2 emissions. strengthening their resilience, and take action Conservation for their restoration, to achieve healthy and ONE has implemented measures to be fully productive oceans compliant with IMO’s latest regulation on sulphur limit in fuel oil, which will limit SOx emissions. 14.3 Minimize and address the impacts of ocean acidification, including through For more details, please see the Environment enhanced scientific cooperation at all levels chapter, on page 24-26.
ONE’s Code of Conduct and other policies including our Basic Anti-Bribery Policy and Procurement Policy hold all employees to the highest standards of ethical business conduct in all our activities. • Ethical Our Supply Chain Management Guidelines call on business all suppliers to comply with local and international 16.3 Promote the rule of law at the national codes of practice, covering the areas of corporate and international levels and ensure equal conduct governance including issues of anti-competition, access to justice for all • Responsible anti-bribery and prevention of money laundering. 16.5 Substantially reduce corruption and tax practices ONE’s Global Tax Policy sets out the guiding bribery in all their forms • Illicit Trade principles and process protocols to being a responsible taxpayer. ONE has a cargo screening process as part of our booking system to conduct due diligence and detect questionable goods. For more details, please see the Responsible Business chapter, on page 38-42.
17.16 Enhance the global partnership for ONE has joined a number of industry and sustainable development, complemented by sustainability initiatives, including the Global multi-stakeholder partnerships that mobilize Compact Network Singapore (GCNS) to enhance and share knowledge, expertise, technology our collaboration with like-minded stakeholders and financial resources, to support the and work towards a more sustainable shipping achievement of the sustainable development industry. goals in all countries, in particular developing For more details, please see the About ONE countries chapter, on page 9-10. 24 OCEAN NETWORK EXPRESS (ONE) Environment
Ocean shipping is an efficient and cost-effective means for transporting goods internationally, accounting for 90% of global trade in 2019.
However, with issues such ONE’s environmental implementation and execution as climate change, loss of policy encompasses: of the environmental biodiversity and impacts from management systems. The • The protection of the waste threatening the health of EMS Top Management and environment including the environment we live in, as Project Teams meet at least prevention of pollution well as the lives and livelihoods once a year to discuss issues of people, it is crucial that the • Environmental objectives and areas for improvement. shipping industry continues that are compatible with the to implement and improve strategic direction and the Climate Change on its sustainable practices. context of the company (including GHG and Environmental impacts from • The integration of the other emissions) the shipping industry include environmental management Based on the third International air pollution, sea pollution and system requirements into Maritime Organization (IMO) other effects on marine life. As a the company’s business report, shipping contributes to responsible container shipping processes about three percent of global business, we aim to ensure, to • The use of the process anthropogenic carbon dioxide the best of our ability, that our approach and risk-based emissions and may continue operations are handled in a way thinking to grow by 50% to 250% that minimizes environmental • The resources needed by 2050. In 2018, the IMO impact. We also comply with for the environmental announced a target to reduce the relevant international management system are the total annual greenhouse industry regulations. available gas (GHG) emissions from the shipping sector by at least 50% • Ensuring that the Our Environmental by 2050 compared to a 2008 environmental management Policy and Management baseline. This is to meet the system achieves its intended System Paris Agreement goals, which outcomes As stated in our Environmental aims to keep global warming to Responsibility Policy, ONE is In October 2018, we achieved less than 2 degrees Celsius. committed to incorporating the ISO14001 certification leading environmental for our operations. Our As part of our commitment to practices into our business Environmental Management reduce our emissions and to strategy and operations, and System (EMS) Team, which meet the IMO’s objective, we to fostering environmental includes top management, have developed medium- and awareness and responsibility is responsible for policy long-term carbon dioxide (CO2) among our stakeholders. and objectives setting, reduction targets*. SUSTAINABILITY REPORT 2020 25
• Use of larger vessels for the • Replacement with high- Medium-term target: transport of more containers efficiency propellers per trip • Modification of bulbous bow 25% • Use of shore electric power to reduce resistance made reduction of CO2 through an Alternative Marine by waves Power (AMP) system when emissions To monitor the energy (in gram/teu-km) berthing, reducing the need for the use of onboard diesel efficiency performance of our by 2030 from vessels, ONE has developed 2018 baseline generators at specified ports which have the facilities an in-house system that collects voyage data from • Management of engine room each vessel and feeds it into Long-term vision: machinery (i.e. boiler and a monthly fleet performance generator) through monthly report. These performance 50% evaluation for performance reports analyze the monthly reduction of CO2 improvement fuel oil consumption in the main emissions • Occasional inspection and engine, generator engines and (in gram/teu-km) maintenance of hulls and auxiliary boiler. We also identify by 2050 from propellers which reduces the best practices amongst our fleet and share this information 2018 baseline friction caused by build-up of marine fouling, thus optimizing with vessels and vessel owners. operational performance and As a result of our energy *The reduction targets apply to reducing fuel consumption. efficiency initiatives, our CO2 our direct shipping fleet and does emissions intensity reduced by not include emissions from other Initiatives completed in 2019 for 3% from 2018. operations such as our office buildings selected vessels: and those from our supply chain such Our Global Vessel Operations as terminal operations. • Upgraded the autopilot system and Fleet Management to an advanced-control system Department will continue to roll To improve our energy efficiency to minimize vessel resistance, out initiatives for fuel efficiency and reduce our CO2 emissions, optimizing routing and fuel which include the management we have implemented measures consumption of vessel speed and schedule, and new initiatives, some • Downsized the Cooling Sea monitoring of navigational of which involved working Water Pump Motor, which uses and technical performance, with vessel owners and less energy marine weather analysis and manufacturers. These measures • Installed special fins for close ship-shore coordination. and initiatives include: propellers to improve We will also be exploring the • Ensuring optimum scheduling propulsion efficiency and use of biofuels through a trial and shorter port stay times to reduce fuel consumption project in 2020. Use of biofuels increase trip efficiency can improve combustion Initiatives to be undertaken efficiency as well as reduce • Slow steaming, which is the in 2020: pollutant emissions. reduction of the operational speed of the vessel, thus • Attachment of special saving fuel and reducing CO2 propeller boss cap, an and other air emissions energy saving device
Fuel Consumption from non-renewable sources (TJ)
Oil Type 2018 2019
Fuel Oil 119,229 157,715
Gas Oil 12,056 17,230
Total 131,285 174,945
Fuel Oil consists of Heavy Fuel Oil and Very-Low Sulphur Fuel Oil. ONE did not consume fuel from renewable sources in 2019 Conversion from fuel quantity to TJ is based on conversion factors provided in CDP Technical Note: Conversion of fuel data to MWh, CDP Climate Change Questionnaire 2020 26 OCEAN NETWORK EXPRESS (ONE)
Scope 1 emissions from consumption of fuels (tonnes of carbon dioxide equivalent, tCO2)
Oil Type 2018 2019
Fuel Oil 9,191,451 12,163,491
Gas Oil 898,882 1,284,634
Total 10,090,333 13,448,125
Note: As ONE only began operations in April 2018, the emissions data only cover April to December 2018, whereas the 2019 data covers the full year. The operational control approach is used for the consolidation of data based on the GHG protocol. Emission factors are referenced from the Clean Cargo Working Group (CCWG) and only CO2 is included. Based on CCWG, “Given that all relevant energy consumption from ocean container transportation stems from fuel combustion on vessel engines, CO2 emissions is an appropriate approximation of total GHG emissions.”
CO Emissions Intensity (g/TEU-km) In 2019, our energy consumption at global headquarters in 50 48.35 Singapore was 376,837.39 kwh, 46.79 a decrease of about 2% from 2018 at 384,286.88kwh. Our 45 Scope 2 emissions* was therefore 157.82 tCO2, down from 40 161.10 tCO2 in 2018. 36.26 35 Our total energy consumption in 2019 including fuel use on 30 vessels and purchased electricity 2018 2019 for our global headquarters in Singapore was 174,946 TJ Performance 2030 Target in 2019.
Note: *Based on the Electricity Grid The emissions intensity data only includes Scope 1 emissions from the use of fuel on vessels Emissions Factors provided by the Emission factors are referenced from Clean Cargo Working Group and the Global Logistics Emissions Singapore Energy Market Authority Council Framework.
Managing Sulphur Oxides functional task force to evaluate installation, but long installation (SOx) Emissions the technical requirements and times make it possible only as a plan actionable responses. Several later phase approach. We are also The combustion of crude oil in the options have been evaluated to looking to charter vessels with ship’s engine results in the release identify the best and most cost- scrubber systems to expand the of SOx, which are harmful to human efficient method to comply with the number of compliant ships. health and can lead to acid rain. regulation. This includes: The limitation of SOx emissions will • Using Liquified Natural Gas (LNG) therefore improve air quality and • Using low-sulphur compliant - LNG is another category of protect the environment. The IMO hybrid oil - Hybrid oil is one of compliant oil but the lack of LNG powered engines on ONE’s ships has been regulating SOx emissions the compliant oils and ONE’s and limitations on the availability of from ships under the International container vessels are equipped LNG bunkering facilities makes this Convention for the Prevention of to adopt low-sulphur content option one that requires further Pollution from Ships (known as the hybrid oil without requiring special evaluation for implementation. MARPOL Convention). With effect from modification, making this the most January 2020, the IMO has further viable way to meet the regulations As of end 2019, 100% of vessels in the short-term. tightened regulations to limit sulphur chartered by ONE are compliant with content in fuel oil to less than 0.5%. • Installing a scrubber system the new regulation. More details on on vessels - There are several how we are complying with this In response to this new requirement, existing ONE ships that meet the new regulation can be found on ONE has established a cross- requirements for scrubber system ONE’s website. SUSTAINABILITY REPORT 2020 27
Marine Pollution and Quarterly feedback sessions Recycling and Disposal Conservation are carried out between ONE of Materials Accidental spills and operational and the third-party companies At ONE, we aim to reuse and discharges can have an adverse involved in carrying out VQS recycle the waste generated impact on marine life. While inspection of the ships to identify by our operations where ONE does not own any vessels areas of improvement. opportunities exist. Recycling currently, we work very closely bins are provided at our office with the owners of the vessels All incidents involving any sort of buildings and e-waste such we charter to ensure that best spillage is investigated, analyzed as batteries and laptops are practices are implemented, and dealt with utmost importance. disposed through licensed and all relevant regulations are Procedures are modified if recycling companies. We also complied with. necessary, to prevent recurrence. arrange for MARPOL (IMO) Employees can report any compliance checks on waste Vessels chartered by ONE observed negligent actions that management to be conducted will undergo a periodic could result in damage to the onboard our chartered vessels. Vessel Quality Standard (VQS) environment via ONE’s Hotline inspection to ensure their Safety system. There were no significant Ship recycling Management System (SMS) spills* reported in 2019 by our In 2009, the IMO adopted the meets our requirements. These vessels in 2019. Ship Recycling Convention. inspections are carried out by ONE does not currently own third-party survey companies, As part of our CSR activities, any vessels and will comply in close collaboration with we organize beach cleaning with the Convention if we do our Marine Safety and Quality events, for example, the one have ownership in the future. Department. Checks are conducted by ONE Mexico at For the scraping of ship hulls, conducted on the vessel’s Manzanillo port to remove trash we carry out preliminary surveys equipment, compliance with the and prevent them from entering on dismantling yards to ensure ship management company’s the ocean. A total of fifteen that proper practices are in Safety Management System employees took part in the event place to reduce impact on the (SMS), compliance with the in 2019. Two waste drums which environment and workers MARPOL requirements through were recovered from the port before they can be engaged by certification checks and whether and repurposed as trash bins ship owners. proper records are kept for were also placed on the beach waste and effluents treatment/ to encourage proper waste *A significant spill is defined as more than discharge. disposal habits. 150 litres overboard/case 28 OCEAN NETWORK EXPRESS (ONE) Operational Excellence Being one of the newest players in the industry, within a competitive climate dictated by low unit costs and economies of scale, we see customer service and operational excellence as the key drivers for us to differentiate and stake our place in a future container market.
Innovation and digital Innovation and We established the ONE solutions offer a way to Digitalization Digitalization roadmap to reimagine new levels of Digitalization is no longer guide us in building a robust operational and service just a nice-to-have but the internal digital foundation, excellence and efficiency, key to long-term survival enhance existing business enabling us to capture and success in the container models and services, develop new opportunities and shipping industry. At ONE, we new ones through digital deliver more benefits to believe in delivering value technologies, and ultimately customers. through big data analytics to create new value for and superior digital capability. the market.
North Star
As ONE, we deliver value through big data analytics and digital capability to achieve excellent customer experience.
Expectation Ambition Capabilities Timely, accurate and transparent Most data-driven & digitally savvy in High expertise, high commitment services with digital technologies industry and big data as assets
Underpinned by our values
Excellent customer experience Sales strength by competitive Operational excellence in cost, through digitalized platform salesforce and customer accuracy, efficiency and governance intelligence with digitised process and analytics SUSTAINABILITY REPORT 2020 29
ONE’s Digitalization Model experience and renamed it ROOT. ROOT is literally the part of the plant attached to the ground or support (typically underground) Value that conveys water and nutrients Bundle Stage 3 to the rest of the plant through Digital business numerous branches and fibres. Convergence It is such named that it will sprout and produce large flowers in the future.
Stage 2 We will commence the first stage Digital enabled of our roadmap in December new services Stage 1 2020 with digitalzing our Channel channels, operations and assets. digitalization Integration of our e-commerce platforms will provide an end-to- Stage 1 end customer experience within Asset a single digital environment digitalization Stage 1 from quotation to e-invoice. Operation Digitalizing our core operations digitalization Capability will enable greater efficiency Bundle through automation and using predictive analytics for operational Business as usual optimization, as well as better risk management with increased A Digital Strategy Committee which seeks to provide a supply chain visibility through real- (DSC) has been set up in common frame of reference time data exchange. 2019 as the steering body for for both business and IT to ONE’s digitalization efforts and align on what and how ONE We believe that evolving into a to coordinate the business will be building for the future, digital Organization will not only and technology capabilities setting a firm foundation to allow us to serve our customers needed to achieve our vision. move forward on. We have better, it will improve our agility since refined the scope of and decision-making abilities, and One of the first initiatives under the Enterprise Architecture serve to attract the right talent to the roadmap is the Enterprise Blueprint Project to focus on help keep the business growing Architecture Blueprint Project, achieving a superior customer and running more effectively.
Digitalization Roadmap
Data analytics Digital commerce model build platforms micro service integration architecture start 2021 2023
2020 2022
New service Continuous model & data apps build platform build expand big data 30 OCEAN NETWORK EXPRESS (ONE)
Customer Experience of our customer support and Focusing on our customer sales activities met customer needs to deliver beyond expectations and which areas expectations and drive could be improved. customer satisfaction is one of our core values. Ensuring While the implementation of high levels of service reliability digital solutions improves our for customers and optimizing quality of service, it also brings the performance of our an increased responsibility customer service platforms, to protect both customer such as the speed at which and corporate data from we can turn around customer digital security threats. Our bookings, form the focus of digitalization is governed by a our efforts to drive superior well-designed IT infrastructure customer experience. and our Security Information Policy, to ensure IT security and In 2019, we launched a number data protection. There were of initiatives to improve lead no substantiated complaints time of quotation, rate filing concerning breaches of and booking process, to further customer privacy and losses of enhance customer service. customer data in 2019.
We implemented the Live Chat Operational Efficiency function across 10 countries ONE also strives to achieve the to handle e-commerce best operational efficiency, not enquiries, to enhance direct only at sea but also on land and communications with our shore, such as terminal, inland customers and improve transport, barge and container productivity. We plan to roll depot operations. communicate more closely this out to 8 more countries by with the terminals, which will the end of 2020 and develop We are deepening partnerships improve our service reliability a chatbot application that can with service providers along and benefit our customers handle a greater volume of the whole value chain and through better service levels. enquiries. implementing various initiatives globally to improve In January 2019, ONE and We developed a Customer our operational efficiency end PSA Singapore (PSA) jointly Relationship Management to end. celebrated the highest (CRM) system where customer productivity record achieved feedback can be systematically A good example of such by ONE’s container vessel captured to allow improvement initiatives is our Terminal “NYK SWAN” at PSA in our service quality. The Partnership Program (TPP), Singapore’s Pasir Panjang CRM system makes sharing originally launched in 2018 Terminal, one of the terminals of information among global with 9 terminals in the world. under the TPP. In February and regional offices, different This program was expanded 2019, another of ONE’s departments and between in 2019 to more terminals, vessels “MOL TRIBUTE” also loading and discharging ports with the objective of reducing achieved productivity record easier and more seamless. vessel port stay and improving with 19,190 TEUs (including The timely information updates productivity, which is mutually 38 TEUs void space) loaded. improve communication beneficial to both carrier and These achievements were lead-time and customer terminal. Schedule integrity and made possible by the strong engagement. We are further vessel speed optimization are customer support, cooperation implementing and reinforcing improved for the carrier, which between the terminal operator, use of the CRM system. also reduces environmental ONE’s stowage planners and footprint during navigation, shipping crew. In the third quarter of 2019, while the terminal can boost we also launched a customer the efficiency and utilization Cargo and satisfaction survey to global key of their berths and equipment. Container Safety accounts in each region. This Another benefit of this program Safe transportation of cargo helped us understand which is being able to work and is of utmost priority for ONE. SUSTAINABILITY REPORT 2020 31
It is fundamental to delivering on our customer promise and building trust with them. Beyond that, we also have a responsibility towards our ONE VESSEL QUALITY STANDARD employees to ensure safety (ONE-VQS) across our operations.
Vessel Safety Our approach to vessel safety is anchored in ONE’s stringent Vessel Quality Standard (VQS). Marine Safety Inspection Owner / Ship Vessel The VQS ensure high safety & Quality company Manager standards are maintained on ships, based on requirements for ship safety and quality to shipowners and ship information allows us to share management systems that are management companies. information with all our global in line with industry standards. offices and establish optimal Safe Ship Operation and safety procedures. ONE’s Marine Safety & Transportation Quality Department (MSQ) is ONE is committed to ensuring In addition, the MSQ responsible for managing and the safe operation of ships. We department publishes a monitoring vessel safety. They developed and implemented monthly newsletter to update carry out ship inspections in an Operational Standard to on safety information and share accordance with ONE’s VQS. In provide guidance to ship lessons from accident cases 2019, a total of 99 inspections crews on how to manage and with onshore and offshore were carried out. A target has respond to issues such as personnel, all operational been set to ensure a minimum cargo damage, heavy weather, vessels, shipowners and ship of 100 vessels are inspected accidents and fires, as well as management companies. every year. provide instructions on safely navigating areas at high-risk We use the hours of downtime The Fleet Management of piracy and conflict zones. of vessels due to accidents Department ensures that the Issues such as robbery and or problems as a means of shipowners of our chartered theft, unauthorised stowaways, measuring the degree to vessels comply with ONE’s and the smuggling of firearms, which we have achieved safe safety policies and processes. drugs, and other illegal ship operation. For the year If ships and ship owners are contraband are also addressed 2019, the average downtime found to be in violation of any in the Operational Standard. per vessel was 19.94 hours ONE safety standards, remedial and we are working towards actions will be taken as a The Global Vessel Operations bringing it below 14 hours, priority. ONE will work together department conducts daily with the ultimate target of with the ship owners to build monitoring of our vessels’ ‘zero’ downtime. capacity and operational position together with the controls, to ensure that risks current weather condition to Maintaining high vessel safety are addressed and minimized. ensure timely response to any standards and ensuring the One incident of violation of navigation risks. They are also safe transportation of cargo ONE’s safety standards was in charge of stowage planning remains a top priority for found during VQS inspection to ensure cargo safety. ONE. Annually, our senior in 2019. We terminated the management also takes part in contract for the vessel and Our ‘Marine Accident Report a Safety Management Review replaced it with one that met System’ (MARS) was launched to evaluate our policies and our safety standards. with the aim of both processing performance and implement accident cases swiftly and any changes if necessary. Safety campaigns are carried analyzing accident trends. This We also conduct an annual out periodically to foster a allows us to better understand large-scale accident drill to safety awareness culture in the root causes of accidents maintain our preparedness the company and ensure that and formulate effective and response capability in ONE’s safety standards are preventative measures. the unfortunate event of communicated with importance The database of accident an accident. 32 OCEAN NETWORK EXPRESS (ONE) Social
At ONE, we believe we have the responsibility to support and empower our people and our communities, wherever we operate. This is enshrined in our Business Credo, which guides our day-to- day business conduct.
We commit to respecting Global Employee Figures 2019 the diversity, individuality, rd and humanity of employees, Male Female 3 Gender Total and contributing proactively Permanent Full-Time 3,552 3,740 0 7,292 to society as a good corporate citizen. Contract/Part-time 29 172 1 202 Taking Care of Our Employees We are dedicated to ensuring rights and labour standards. Guidelines, which we This commitment is inline request all our business our employees have a with our Code of Conduct partners, including conducive, respectful and safe and we work to ensure that suppliers, to adhere to work environment and are we do not contribute to when providing products supported in their professional human rights violations as a and services to ONE. They and personal development. result of our global business are required to formally At the end of 2019, our global activities. We comply with all acknowledge and ratify workforce consisted of 7,494 applicable labour agreements these guidelines before employees in 46 entities and regulations relating to entering into a formal across 49 countries. Turnover the protection of the rights of contract with ONE. rate for the year was 7.92%. workers in the countries and regions in which we operate. We also seek to ensure Human Rights and equal opportunity in Labour Practices Respect for human rights, employment, personnel As a member of Global including elimination of administration, wages, Compact Network Singapore, forced and child labour, is training and promotion as we support universal also incorporated into our part of our commitment to principles regarding human Supply Chain Management fair personnel treatment. SUSTAINABILITY REPORT 2020 33
Talent Management All employees undergo and developmental needs. The success of our business an annual performance Training and development depends on hiring, retaining review to determine programmes on a range and developing a talented promotion opportunities, of development topics are and engaged workforce. ONE rewards, bonuses and available for employees embraces the diversity of our salary increments. It is also to attend for upskilling, employees and recognizes a feedback channel for such as leadership and the importance of building a employees on their level of management, technical team that works together to work satisfaction. Employees training on dangerous goods create new value by tapping can also have a dialogue management, customer about their career aspirations service and e-commerce, etc. into a wide range of talents. Average training hours Average Non-Executive & Junior Middle/Senior per employee Board training hours Management Management by employee 12.1 19.0 10.7 category hours14.9 Note: the figures exclude our South Africa office
Our CEO Jeremy Nixon race, creed, religion, gender, local offices have access to highlighted the importance national or regional origin, ONE’s whistleblowing hotline of embracing all employees age, disability, or disease, (run by a third-party service as ONE from the beginning, and strive to create a fair and provider), to report any irrespective of our diverse inclusive work environment incidence of discrimination backgrounds. Under our Code in which each employee is or harassment that they of Conduct, all directors and able to work with a sense of experience or observe, along employees are expected to satisfaction and fulfilment. with other issues. This service treat one another with respect The Human Resources is available 24/7, 365 days and dignity, and to respect Department is responsible a year in all languages used the cultures and customs of for managing the anti- at ONE. countries and regions in which discrimination and harassment There was an incident of we conduct business. policies and procedures of grievance reported in FY2019 We have zero tolerance for our company and addressing which was duly investigated any form of discrimination or any incidences that arise. All and resolved with no further harassment on the basis of employees at GHQ, RHQ and action required.
Employees per employee category by gender (percentage) Non-Executive & Junior Middle/Senior Board Management Management Male 53.3 71.8 93.3 Female 46.7 28.2 6.7 3rd Gender 1.0 0 0
Employees per employee category by age group (percentage) Non-Executive & Junior Middle/Senior Board Management Management < 30 years 22.1 0.4 0 So far, 30-50 years 61.0 61.0 27.7 more than > 50 years 16.6 27.7 72.3 92% of employees In 2019, e-learning modules employees. The courses and provides guidelines in our global on workplace harassment cover actions and scenarios on how to prevent such offices have and discrimination were that constitute workplace incidences from occurring. completed this implemented for all harassment and discrimination e-learning 34 OCEAN NETWORK EXPRESS (ONE)
Employee Health, workplace to ensure a safe workshops and trainings. Safety and Well-being working environment. OHS trainings provided to Providing a safe and healthy employees include workplace work environment for our The Human Resources (HR) first aid, administering CPR employees is of utmost Department and General and AED, and safety and importance. ONE is fully Affairs (GA) Department at each hygiene practices. compliant with all applicable ONE entity are responsible for laws and regulations on managing their respective OHS Employees are also covered occupational health and safety systems. They conduct OHS under group medical/ in the jurisdictions in which risk assessments on a regular healthcare insurance, personal we operate. basis which are reviewed and accident and group term life endorsed by board members. insurance, as an employment Occupational health & Employees must report any benefit. To promote employee safety (OHS) is managed accident, injury or work- wellbeing and engagement, in compliance with the related hazard to the HR or GA the ONE Recreation Committee legal requirements of the Department who will follow up (ORC) plans various events respective countries in which to investigate and review for at discounted prices for we operate, with reference measures that should be put employees, such as movie to the Global HR policy of in place to prevent recurrence night, racing night, prawn providing a safe and healthy and minimize risks. As part fishing, jogging, cooking, etc. environment for employees. of OHS policy, employees Social spaces are provided The respective countries’ can stop work due to safety in the offices for employees OHS policies and procedures reasons without reprisals. to interact and to hold events incorporate the ONE Code and informal gatherings. of Conduct and local labour An occupational health services For example, in GHQ, the regulations or guidelines, function exists in majority of Ocean Café provides coffee, covering all workers, activities the offices to support risk snacks and fruits during and workplaces. For example, and safety management, office hours. On Fridays, a in Thailand, it is required encourage safe working complementary lunch buffet is by law to establish an OHS practices and healthy work catered for people to socialise policy and an OHS committee habits among employees. OHS over a meal. comprising employer and information is disseminated employees to oversee and through online channels such ONE consistently monitors the evaluate the implementation as email and website, as well number of work-related injuries of safety measures in the as through town hall sessions, and fatalities that may occur. 0 0 9 Number of Number of high-consequence Number of recordable Occupational fatalities work-related injury work-related injury Health & Safety Performance for FY2019 Lost-time Injury Frequency Rate (LTIFR) Singapore GHQ 1.19 Global LTIFR figure is currently unavailable but we are working towards providing this information in the coming years.
The recordable work-related the purview of the shipowners & Quality department also injury sustained by our / ship management companies. conduct a pre-embarkation employees include accidental We are nevertheless committed briefing for captains to explain tripping and injuries sustained to ensuring high level of safety safety policies and procedures. in traffic accident during standards at sea. Our Fleet More information how we commute to work. Management Department ensure safe ship operations and ensures that the shipowners of the safe transportation of cargo Occupational Health and Safety our chartered vessels comply can be found in the Innovation management system onboard with ONE’s safety policies and Operational Excellence our chartered vessels are under and processes. Marine Safety chapter. SUSTAINABILITY REPORT 2020 35
Supporting Local Communities ONE believes in back to society as a good transportation and larger contributing positively to corporate citizen. cash donations through the communities in which the GHQ Planning & Our support is predominantly we work and live. Whether Administration department. channelled towards it is through cash donations, Smaller contributions can be environmental activities, employee volunteering or children’s causes, education, approved at local or regional leveraging on our container disaster relief and other levels with each office having shipping services for free fundraising events. ONE the autonomy to decide transportation, these are ways manages requests for in- the type of local community in which we actively contribute kind donation of free freight initiative they wish to sponsor.
Free Transportation In 2019, ONE contributed 31 TEUs of free container shipping over 8 trips to transport donated items as well as humanitarian and disaster relief goods to communities in need in Africa, South-East Asia, Japan and China.
Used wheelchairs 8 trips for disadvantaged children in TEUS of free Paraguay 31 container shipping
English books to Ambulances Africa for SAPESI and medical (South African equipment to Primary Education Cambodia Initiative)
In 2019, across our various global offices, we contributed
By Over volunteering22,830 hours employees1360 CSR activities41 36 OCEAN NETWORK EXPRESS (ONE)
CSR and Community Engagement Activities Each of our global office is environmental-related such with children charities and given the autonomy to decide as beach and park cleaning, promoting education, or on the local community causes collection of recyclables donation and fundraising they would like to support and and planting, social impact- campaigns. to initiate CSR activities, be it related, such as volunteering
United States India China
Collection of food Donation to school for Donation of clothes donations for local rural community and stationery to charity FeedMore children in need
Empowering under-privileged Litter picking Volunteering at children through rugby Foodbank at parks
Tree planting Mexico event Japan United Arab Brazil Emirates Beach cleaning Fundraising activities for Typhoon Hagibis victims Seedling planting and Green Box - Collection of repainting at NGO Collection of Waste recyclables to fundraise Paper to save for terminally ill children Educating elementary Environment school students about Letter writing to Santa container shipping Claus activity for industry disadvantaged children Bangladesh Indonesia
Peru Visiting elderly at Donation to NGO nursing home helping young girls separated from their Australia Fundraising families through marathon Thailand for local schools Fundraiser for deaf children: Blood donation drive Vietnam Loud Shirt Day
Cleaning up park Hosting overseas students to learn Singapore about containership Malaysia business
Adopt-a-School cum Volunteering at Care Corner Volunteerism project senior activity centre
Cleaning of old folks’ Cooking event for L home underprivileged children
ENVIRONMENTAL EDUCATION Volunteering with SOCIAL DONATION Children’s Protection Society fundraiser SUSTAINABILITY REPORT 2020 37
Donation to “Target 1 Million Saplings” The region of Izmir suffered a fire that destroyed 500 hectares of forest. 9 NGOs in the city, together with the Aegean Forest Foundation launched the “Target 1 million Saplings” campaign.
ONE Turkey donated to this campaign to raise funds for new saplings to be planted that would help to ensure the re-greening of forest areas darkened with fire.
Seedling planting and repainting at NGO 12 employee volunteers from ONE Sao Paulo office painted walls and planted seedlings at NGO “Gotas de Flor com Amor”, which supports street children and orphans in Brazil. The office also donated organic compost for the plants. This has benefited the quality of life and welfare of around 130 children who stay there. It was also a great and meaningful experience for the employees.
Adopt-a-School Programme SMK Pulau Carey (Carey Island High School) is an underprivileged school where 35% of student population is made up of aborigines from the “Mah Meri” tribe. Due to the school’s location on an island and its close proximity to sea water, it is exposed to harsh weather and in quite a deplorable condition. School teachers are known to multitask as general workers e.g. gardener, carpenter, etc. to make ends meet.
ONE is keen to make positive changes by committing to undertake small projects each year. In half a day, 29 volunteers from ONE Malaysia office managed to rebuild its Reading Corner and fish pond, renew its outdoor garden furniture, repair and repaint the decayed walkway pillars and create a foot reflexology area for the teachers and students. 38 OCEAN NETWORK EXPRESS (ONE) Governance
To maintain the trust and confidence of our stakeholders, it is paramount that we act responsibly and conduct our business activities with integrity.
This involves fostering a • Improvement of service Whistleblowing and culture of ethical business quality, pursuit of safety, Raising Concerns conduct and implementing an and preservation of the Employees have access to effective governance structure. natural environment a Hotline System as a safe It also requires having in place • Fair business activities avenue to raise, without the fear a proper risk management • Prohibition of conflict of of reprisal, any improprieties or system, and addressing key interest non-compliances with regulation risks associated with tax • Respect for human rights or our policies. Issues raised transparency, supply chain and diversity of cultures may relate to: management, piracy and • Violation of any applicable • Relationship with society security, and illicit trade. laws and regulations, • Assurance of a safe and violation of any legal or healthy work environment Ethical Business professional obligation; Conduct • Treatment of information • Conduct that is inconsistent ONE is committed to • Responsibility of top with any of ONE’s internal upholding the highest management policies and procedures; standard of ethical business • Report and consultation • Bribery, corruption, conflict conduct in all our activities, of suspicious behaviour of interest, anti-competitive as set out in our Business practices, breach of Credo. We have implemented The Business Credo and sanction regulations; a number of policies and other compliance-related • Financial fraud or practices that helps us do policies are provided to mismanagement; this. Primarily, the company’s all employees via ONE’s • Discrimination or Code of Conduct, which all internal online portal. As part victimization; harassment; directors and employees of the onboarding process, unethical behaviour; are expected to adhere to, new joiners are required • Abuse or theft of ONE’s sets out the principles that to complete a mandatory resources and assets; guide the behaviours and e-learning module which • Danger to health and safety, decisions we take in our day- includes a quiz to ensure they criminal activity, damage to to-day business activities. The have understood and are the environment; and/or Code of Conduct covers the able to apply these policies in • Deliberate concealment of following: everyday situations. any of the above. SUSTAINABILITY REPORT 2020 39
Individuals have the option RHQs are situated in Hong responsible for overseeing to use ONE’s internal hotline Kong, Singapore, the United the company’s sustainability to report issues directly Kingdom (UK), the United strategy. To support the to our legal department. States of America (USA) and Board, the Corporate Alternatively, we have Brazil. RHQs oversee over 160 & Innovation division appointed SAFECALL Ltd. as local representative offices takes the lead on internal an independent third-party that handle cargo coming into governance issues, issues to run our external hotline. the local ports. involving or relating to the Contact details are made Board of Directors, budget available to all employees The Board has overall planning and developing through posters in the office, responsibility for performing the company’s approach ONE’s internal online portal the duties of strategic to sustainability, working and compulsory e-learning. planning and providing closely with the Compliance All employees can make oversight. As part of their Committee and Business use of this service, which is mandate, the Board is also Strategy Committee. available in all languages used at ONE. If a concern is raised, senior management will carefully examine issues Corporate Governance chart and contact the whistleblower to determine the best HOLDING COMPANY next step. Depending on (HoldCO) the severity of the issue, they will either conduct an investigation or escalate • Audit-Supervisory the issue to the Compliance HoldCo Shareholder Board of Directors Board Member Committee headed by our meeting • External Auditor Chief Compliance Officer for further review. Once the Representative issue has been resolved, Internal Audit Directors (HoldCo) ONE will ensure disciplinary actions against the offender are taken if required and preventative measures are implemented. OPERATING COMPANY (OpCO) Corporate Governance ONE’s Holding Company (Hold Co) in Japan oversees the governance of our Global headquarters (GHQ) OpCo Shareholder Board of Directors in Singapore. As a company meeting External registered in Japan, Hold Co Auditor is held to comply with the Compliance Risk Management CEO Companies Act, Corporate Committee Committee Governance code which includes the need for an audit by external auditors GLOBAL HEADQUARTER Corporate strategy for internal control systems. (GHQ) meeting ONE’s presence through Internal Audit (GHQ) regional offices, branches, Divisions of GHQ subsidiaries and joint- ventures span the globe, and ONE GHQ oversees the governance with delegation to Regional Headquarters Corporate & Innovation Product & Network Marketing & Commercial (RHQs). 40 OCEAN NETWORK EXPRESS (ONE)
Compliance Our Approach to Compliance The GHQ Compliance Committee – headed by the Compliance Committee Chief Compliance Officer Board (CCO) and comprises the CEO, Annual top message Legal for compliance Managing Directors as well as Department Head GHQ department heads – has responsibility for governing ONE’s compliance programme. Reporting Line Taking a risk-based approach, the committee approves Business side and monitors compliance initiatives. Respective GHQ GHQ Legal GHQ departments are responsible for the implementation of Compliance such initiatives at GHQ, RHQs RHQ Legal RHQs Declaration and frontline offices in each country, following business reporting lines. On-going communication between Local Legal Local Offices RHQ and frontline offices, as well as collaboration across supports departments is essential to ensure our compliance e-Learning (Foundation) initiatives are consistently applied and remain practical for each market. HR teams, depending on the Bribery and Corruption nature of the issue. Bribery, anti-corruption and Some of the key initiatives compliance with legislation that have been rolled out as A number of training sessions is also an important part of a result of cross department have been conducted on ONE’s Code of Conduct. The collaboration include the key compliance topics, some provision or acceptance of integration of compliance- online and others face-to- bribes, whether at home or related topics in our Sales face. For example, a number abroad, directly or indirectly, Managers’ training, the creation of e-learning modules have is strictly prohibited. In of anti-fraud e-learning, the been rolled out on topics that addition, the ONE Basic creation of a workplace include but are not limited Anti-Bribery Policy sets out a total of harassment e-learning module, to our Business Credo and that no employee of ONE, the implementation of an Code of Conduct, competition whether directly or through 39,214 annual compliance declaration law, anti-bribery, economic third-parties, are to engage in courses and a compliance/anti-fraud sanctions, conflicts of interest, any form of corrupt practices, completed workshop. anti-fraud, IT and Information including bribery and extortion. globally Security. During 2019, an To set the tone from the average of five e-learning top, the Board reinforced courses were taken by each ONE’s commitment to employee, with a total of ethical business conduct 39,214 courses completed and compliance to all GHQ globally. In 2019, we also employees via an annual held a seminar, conducted video message. In response, by external experts, attended all GHQ employees submitted by 24 members of the Board a compliance declaration and Senior Management of adherence to ONE’s covering key compliance Credo, Code of Conduct and issues that are relevant to other applicable policies. them. Eight compliance and Any concerns raised by the anti-fraud workshops were employees shall be followed also conducted, with a total of Bribery up by our legal, compliance or 91 employees attending. SUSTAINABILITY REPORT 2020 41
Risk Management As a global shipping company, ONE is exposed to various risks, including market volatility, compliance, vessel operations, disasters and emergencies, geographic specific risks, information security and environmental risks. To manage the company’s approach to risk, we have in place a Risk Management Committee (RMC), tasked with evaluating the business impact of risks. The RMC reports to ONE’s Board of Directors Responsible and is made up of company tax practices Directors, with the Business Planning Team acting as a secretariat for the group. The RMC reports to ONE’s Board promotes risk and control products and services from a of Directors. Responsibilities of awareness within the company. range of companies. Critical the RMC include: to our operations are terminal • Sustainability Responsible tax practices operators, inland and coastal • Stipulation, evaluation and As tax laws and regulations transportation companies, classification of risks and around the world are ships and container owners, regular review constantly evolving and bunker suppliers and IT • Initiating and minimizing loss becoming more complex, vendors, without whom our risks in terms of amount and the risk of unintentional core business activities cannot frequency compliance breaches is take place. • Initiate recovery plan significantly increasing. ONE with related division and is committed to being a To ensure our high standards committee responsible taxpayer, working of sustainability and business • Control various risk towards tax transparency and conduct are upheld along our management activities disclosure. In line with our supply chain, ONE launched across the Organization values, we do not condone our Supply Chain Management the behaviour of profit shifting Guidelines. The guidelines call In 2019, we reviewed our risks with a tax avoidance intent on all suppliers to: at a group level, creating a for the purpose of minimizing • Respect human rights, heat map which categorises our tax obligation. Our Global particularly around the various risks and organizes Tax Policy (GTP) sets out the employee health and safety counter-measures according guiding principles and process and labour rights. to “Prevention Plans”, protocols for the in-scope • Comply with local and “Minimization Plans” and tax processes. international codes of “Recovery Plans”. We have also practice, covering the areas checked to ensure each risk is ONE’s Tax Team is responsible of corporate governance covered by a relevant policy. for ensuring the appropriate including issues of anti- tax filings and tax obligations competition, anti-bribery The internal Audit Team are met. and prevention of money reviews and evaluates the overall risk management Supply Chain laundering. process, providing independent Management • Provide safe and trusted assurance and advice on ONE’s ONE recognizes that in order services, training employees risk management, corporate to achieve our sustainability to undertake activities such governance and internal ambitions, we must bring as operation of machinery control processes to ensure on-board our suppliers safely and have established we are operating as effectively and business partners. As emergency response as possible. The team also a business, we purchase capabilities. 42 OCEAN NETWORK EXPRESS (ONE)
• Improve environmental through cyber security and to Defence Force and navies of practices including the prevent attacks and hijacking various countries as much as reduction of resource and of our commercial vehicles is possible but cannot rely solely energy consumption. important to ONE. on this type of defence. On • Manage and protect our side, we aim to ensure the intellectual property and Our Security Information Policy safety of crew is a top priority. information responsibly. has been developed to protect We seek to avoid high-risk areas, ONE’s information assets – use high-pressure water nozzle Procurement staff are both in digital and non-digital and install razor wire to prevent encouraged to share these format. It details the minimum unauthorized embarkation, as guidelines with potential requirements and responsibilities well as provide bullet-proof vests vendors. Vendors that agree for all our employees to ensure and helmets. to follow our guidelines can confidentiality and data privacy is register their name on our maintained, as well how to report There were no information website, in order to recognize data security incidences. We also security breaches, as well as no their efforts in following have an IT Management Policy stringent social, environmental which defines the requirements cases of piracy in 2019. and governance standards. for managing ONE’s information Since launching this, we are technology assets throughout Illicit Trade pleased to see that the number the entire lifecycle. We recognize that the sheer of registered companies is volume of trade that is carried steadily increasing, a testament Piracy incidents off the coast of out at sea provides opportunities to our ability to influence Somalia and the Gulf of Aden for criminals to move illegal and suppliers and their willingness have dropped in recent years as unethical goods across borders. to join us on this journey. a result of the measures taken Illicit trade – whether in the form by the international community, of arms, narcotics, endangered We have also developed an including Japan’s Maritime Self- wildlife and other illicit goods on internal Procurement Policy Defence Force. The situation still the black markets – damages which has been disseminated remains fragile should efforts be the global economy and harms to all procurement related dropped. Piracy-related losses in public health worldwide. ONE divisions. Our Procurement Gulf of Guinea (West Africa) and has zero tolerance towards the Policy encourages employees in Southeast Asia are however trade of illicit goods. We have to make purchasing decisions still frequent. a cargo screening process as through the following criteria: part of our booking system • Fair and unbiased evaluation We seek to receive protection to conduct due diligence and • Compliance with laws and from Japan’s Maritime Self- detect questionable goods. social norms • Responsibility towards respecting human rights, safety and environmental protection optimal quality and reasonable cost Piracy and Secrity
Piracy and Security The threat of piracy and hijacking of commercial vehicles at sea has been on the agenda of ship operators. An important aspect of this is that a ship’s onboard information technology and operational technology systems can be hacked just as easily as systems ashore, potentially causing considerable harm to the safety and security of ships, ports and marine facilities. Adopting proper measures to protect our business systems SUSTAINABILITY REPORT 2020 43 GRI Content Index
This report has been prepared with reference to the GRI Standards. The table below presents our GRI content index, which specifies each of the GRI Standards and disclosures referenced in the report, including where the information can be found.
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number General Disclosures GRI 102: Organizational Profile General Disclosures 2016 102-1 Name of the organization 10
Activities, brands, products, and 102-2 3, 10 services 102-3 Location of headquarters Singapore 102-4 Location of operations 11 102-5 Ownership and legal form 10 102-6 Markets served 11 102-7 Scale of the organization 11 Information on employees and other 102-8 32 workers 102-9 Supply chain 41 There were no significant Significant changes to the organization 102-10 changes to our organization and its supply chain and supply chain in 2019. 102-11 Precautionary Principle or approach 24 102-12 External initiatives 14 102-13 Membership of associations 14 Strategy 102-14 Statement from senior decision-maker 4 Ethics and Integrity Values, principles, standards, and 102-16 12, 38 norms of behaviour Mechanisms for advice and concerns 102-17 38 about ethics Governance 44 OCEAN NETWORK EXPRESS (ONE)
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number
102-18 Governance structure 39
102-19 Delegating authority 39 Executive-level responsibility for 102-20 economic, environmental, and social 39 topics Consulting stakeholders on economic, 102-21 21 environmental, and social topics Stakeholder Engagement 102-40 List of stakeholder groups engaged 21 102-42 Identifying and selecting stakeholders 21 102-43 Approach to stakeholder engagement 21 102-44 Key topics and concerns raised 21 Reporting Practice Entities included in the consolidated 102-45 3 financial statements Defining report content and topic 102-46 3, 19 Boundaries 102-47 List of material topics 19 No information or data was 102-48 Restatements of information reinstated. There were no changes in 102-49 Changes in reporting reporting. 102-50 Reporting period 3 102-51 Date of most recent report 3 102-52 Reporting cycle 3 Contact point for questions regarding 102-53 3 the report Claims of reporting in accordance with 102-54 3 the GRI Standards 102-55 GRI content index 43 102-56 External assurance 3 Material Issues Environment Climate Change (including GHG and other emissions) GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 24 components Evaluation of the management 103-3 24 approach SUSTAINABILITY REPORT 2020 45
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number GRI 305: 305-1 Direct (Scope 1) GHG emissions 25 Emissions 2016 Energy indirect (Scope 2) GHG 305-2 25 emissions 305-4 GHG emissions intensity 25 Marine Pollution and Conservation GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 27 components Evaluation of the management 103-3 27 approach Recycling and Disposal of Materials GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 27 components Evaluation of the management 103-3 27 approach Operational Excellence Customer Experience GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 30 components Evaluation of the management 103-3 30 approach Substantiated complaints concerning GRI 418: Customer 418-1 breaches of customer privacy and 30 Privacy 2016 losses of customer data Innovation and Digitalization GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 28 components Evaluation of the management 103-3 28 approach Cargo and Container Safety GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 31 components
Evaluation of the management 103-3 31 approach 46 OCEAN NETWORK EXPRESS (ONE)
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number Social Employee Health, Safety and Wellbeing GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 34 components Evaluation of the management 103-3 34 approach GRI 403: Occupational health and safety 403-1 34 Occupational management system Health and Safety Hazard identification, risk assessment, 2018 403-2 34 and incident investigation 403-3 Occupational health services 34
Worker training on occupational health 403-5 34 and safety
403-6 Promotion of worker health 34
Prevention and mitigation of occupational health and safety 403-7 34 impacts directly linked by business relationships
403-9 Work-related injuries 34
Human Rights and Labour Practices GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 32 components Evaluation of the management 103-3 32 approach Talent Management GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 33 components Evaluation of the management 103-3 33 approach GRI 404: Average hours of training per year per 404-1 33 Training and employee Education 2016 Programs for upgrading employee 404-2 skills and transition assistance 33 programs SUSTAINABILITY REPORT 2020 47
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number GRI 405: Diversity of governance bodies and Diversity and 405-1 33 Equal Opportunity employees
GRI 406: Incidents of discrimination and Non-Discrimination 406-1 33 2016 corrective actions taken
Supporting Local Communities
GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 35 components
Evaluation of the management 103-3 35 approach
GRI 203: Indirect Economic Infrastructure investments and 203-1 35 Impacts 2016 services supported
Governance
Ethical Business Conduct
GRI 103: Explanation of the material topic and 103-1 19 Management its Boundary Approach 2016 The management approach and its 103-2 38 components
Evaluation of the management 103-3 38 approach
GRI 205: Communication and training Anti-Corruption 205-2 about anti-corruption policies and 40 2016 procedures Responsible Tax Practices
GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 41 components
Evaluation of the management 103-3 41 approach
Piracy and Security 48 OCEAN NETWORK EXPRESS (ONE)
GRI Disclosure GRI Standard GRI Disclosure Title Page references Number GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 42 components
Evaluation of the management 103-3 42 approach
GRI 418: Substantiated complaints concerning Customer Privacy 418-1 breaches of customer privacy and 30, 42 losses of customer data
Illicit Trade
GRI 103: Explanation of the material topic and 103-1 20 Management its Boundary Approach 2016 The management approach and its 103-2 42 components
Evaluation of the management 103-3 42 approach SUSTAINABILITY REPORT 2020 49 United Nation Global Compact COP As a corporate member of the Global Compact Network Singapore (GCNS), the local chapter of the United Nations Global Compact (UNGC) network, ONE supports the ten UNGC Principles. Please refer to the UNGC reference table below for coverage of our efforts in relation to the ten principles. We will continue to support UNGC by incorporating the ten principles in the sustainable development of our business
Human Rights Principle 1 Businesses should support and respect the p. 32, 38, 41 protection of internationally proclaimed human rights; and Principle 2 make sure that they are not complicit in human rights abuses.
Labour Principle 3 Businesses should uphold the freedom of p. 32, 33, 38, 41 association and the effective recognition of the right to collective bargaining; Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; and
Principle 6 the elimination of discrimination in respect of employment and occupation.
Environment Principle 7 Businesses should support a precautionary p. 24, 35, 41 approach to environmental challenges;
Principle 8 undertake initiatives to promote greater environmental responsibility; and
Principle 9 encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption Principle 10 Businesses should work against corruption in all its p. 38, 40, 41 forms, including extortion and bribery. OCEAN NETWORK EXPRESS PTE. LTD.7 Straits View #16-01 Marina One East Tower Singapore 018936 E. [email protected]