SUSTAINABLE DEVELOPMENT REPORT for the year 2017 Index Page Managing Director’s Message 3 Introduction 5 Organisational and Operational Boundaries 6 Organisational Profile and Governance 7 Safety 25 Our People 33 Our Communities 45 Carbon / Environment 52 Abbreviations 64 Data 69 Global Reporting Initiative (GRI) Standards Content Index 86 Contact 104 Assurance Statement 105 The China Navigation Company / Sustainable Development Report 2017 Managing Director’s Message 3 • Owned and operated over 120 vessels. Behaving safely Our people • Shipped 21 million metric tonnes of commodities. Our most important goal is to work With the expansion of our business and global • Made 2,600 port calls across 105 countries. without causing any harm to people and footprint, in 2017, we employed 3,076 people • Employed 3,076 employees in 49 countries. the environment. 2017 saw a significant in 49 countries. This represented an increase • Embarked on our first safety maturity improvement in CNCo’s safety records with of 26% for seagoing employees and 34% for assessment. 10 Lost Time Injuries (LTIs). Safety excellence shore-based employees compared to 2016. ashore and at sea is our top priority. Sustainability at CNCo means respecting Our people are at the core of CNCo’s business people, their safety and the environment; At the end of 2017, CNCo appointed Green- operations and our people goal is to be helping the communities in which we operate Jakobsen, a consultancy highly experienced an Employer of Choice. We recognise the in to thrive and helping to create a resilient in safety in the maritime industry to conduct a contributions and hard work of our employees environment through decarbonisation and global safety maturity assessment. We want through long service awards and reward and Dear friends of CNCo, optimising energy efficiency. Our sustainability to build an industry-leading safety culture and recognition programmes. The quality of our strategy is aligned with the Swire group’s this assessment will help us improve our safety people is key to the success of the Company. Welcome to the seventh externally assured environmental strategy, “SwireTHRIVE”. programmes and advance towards Zero Harm. We work to maintain a productive, safe and Sustainable Development Report for The China healthy organisation, employ the right talent Navigation Company (CNCo). CNCo’s core values of continuity, endeavour, and enhance employee performance. excellence, integrity and teamwork underpin In 2017, CNCo continued to work hard on our approach. These principles, together achieving our organisational goals, seeking with our sustainable development objectives efficiencies, improving safety practices and and CNCo’s Code of Conduct, apply to the enhancing customer experiences. Over the way we do business and collaborate with the 2017 calendar year, CNCo: communities where we operate. Sustainability at CNCo means respecting people, their safety and the environment; helping the communities in which we operate in to thrive and helping to create a resilient environment through decarbonisation and optimising energy efficiency. The China Navigation Company / Sustainable Development Report 2017 Managing Director’s Message cont. 4 Our communities with the Hong Kong International Convention for the Safe and Environmentally Sound We believe in doing right by our communities. Recycling of Ships (HKC). Our commitment to From supporting the seafaring community safety ensured that there were zero injuries and to developing cricket talent in Papua New pollution incidents and led to better working Guinea and supporting environmental research conditions for the workers. programmes, we invest in worthy causes and are committed to building long-term, rewarding relationships with our partners and our Industry leadership communities. CNCo is an active member of the Sustainable One of our key markets, the Pacific Islands, Shipping Initiative (SSI). We are also a leading face an immense waste management company on the Ship Recycling Transparency challenge. In 2017, CNCo entered into a Initiative (SRTI) creating a paradigm shift on Memorandum of Understanding with the how vessels are recycled at the end of their Secretariat of the Pacific Regional Environment working life. Programme (SPREP) to ship recyclable waste from eligible Pacific Island ports to be Our annual Sustainable Development sustainably treated and recycled in suitable Reports keep our stakeholders informed of ports in Asia Pacific. our sustainability progress in an open and transparent manner. We will continue working with our customers, peers, suppliers and Thriving environment communities towards a thriving future and to be the leading provider of sustainable shipping CNCo is committed to decarbonising our solutions and our customers’ partner of choice. business. We build and operate a fleet of CNCo is committed to decarbonising our business. We build and modern and fuel-efficient vessels to optimise operate a fleet of modern and fuel-efficient vessels to optimise energy energy efficiency and reduce our environmental footprint. We measure and monitor the energy efficiency and reduce our environmental footprint. consumption and emissions of our operations and set challenging targets to improve every year. James Woodrow In 2017, CNCo oversaw the successful Managing Director sustainable recycling of two vessels at the end of their working life. This was done at a ship recycling facility in Alang, India, in compliance The China Navigation Company / Sustainable Development Report 2017 Introduction 5 This Sustainable Development (SD) Annual Report covers the operations of The China Navigation Company Pte Ltd and its associated group companies (CNCo) from 1 January to 31 December 2017, with any point data being as at 31 December 2017. For this 2017 annual report, we transitioned Standard: ISO 26000:2010, viz. Governance, from the Global Reporting Initiative (GRI) Human Rights, Labour Practices, The “G4 Guidelines” to the “GRI Standards” Environment, Fair Operating Practices, as the basis for disclosure. This report has Consumer Issues, and Community Involvement been prepared in accordance with the “GRI and Development. These are reported under Standards: Core” option. the broad headings of ‘Safety’, ‘Carbon and Environment’, and ‘Our People’ and CNCo reports its full performance in all the ‘Communities’ throughout this report. areas covered by the Social Responsibility CNCo reports its full performance in all the areas covered by the Social Responsibility Standard: ISO 26000:2010 and in accordance with the “GRI Standards: Core” option. The China Navigation Company / Sustainable Development Report 2017 Organisational and Operational Boundaries (as at 31 December 2017) 6 THE CHINA NAVIGATION COMPAN Organisational Boundaries Ship Owners and Agencies, Branches and Liner Trades Liner Trades Bulk Division Bulk Division Bulk Logistics Division JV and Associates Managers Regional offices in: (owned fleet) (chartered fleet) (owned fleet) (chartered fleet) (owned fleet) CNCo Pte Ltd Australia 4x Challenger Class Tonnage as detailed 4x Swire B.Delta39 Tonnage as detailed 1x Cement Carrier 67% Canada Singapore 5x Mihos in Fleet Profile handysize (grabbers) in Fleet Profile Quadrant Pacific Ltd Fiji includes: Hong Kong 8x S Class, MPV31 20x Swire B.Delta39 60% India 1x N Class, B170 see page 7153 handysize (loggers) see page 69 Guadalcanal Travel Services Swire Bulk Indonesia 4x Chief Class MPV22 50% 4x Imabari38 Swire Bulk Logistics New Caledonia Swire CTM Bulk Logistics Ltd 1x CV1100 handysize (loggers) Swire Shipping New Zealand Papua New Guinea 50% People’s Republic of China (PRC) 3 x Green Dolphins Tradco Shipping Limited handysize Republic of China (ROC) 25% Samoa Mandarin Shipping Group Ltd Pacifica Shipping Singapore Polynesia Line Ltd United Kingdom 25% United States of America PT Mitrabahtera Segara Sejati Tbk (MBSS) Scope 1 GHG Office Vehicular Vessel HFC and Petrol / Diesel / LPG / Electricity etc HCFC consumption / emissions Vessel HFO, MDO, GHG emissions and LO consumption Vessel NOx, SOx, PM and VOC emissions Scope 2 GHG Office Electricity Usage Scope 3 GHG Management Air Travel Crew Air Travel Operational Boundaries The China Navigation Company / Sustainable Development Report 2017 Organisational Profile & Governance 7 Organisational profile CNCo also owns: The China Navigation Company Pte Ltd (CNCo) is the The China Navigation Company Pte Ltd • 50% shares in Swire CTM Bulk Logistics wholly owned deep-sea ship-owning and operating arm – (CNCo) is the wholly owned deep-sea ship- Limited, a joint venture with C Transport and oldest operational entity – of the Swire group. owning and operating arm – and oldest Maritime SAM registered in Monaco; operational entity – of the Swire group. • 25% shares in Mandarin Shipping Limited CNCo was founded in 1872 to operate registered in Hong Kong; Mississippi-style paddle-steamers on China’s • 67% shares in Quadrant Pacific Ltd, a joint Yangtze River. Since then the Company has managing shareholdership with Ahrenkiel expanded globally. CNCo is one of the oldest Shipping; independent British shipping companies still • 25% shares in Mitrabahtera Segara Sejati managing its own tonnage in-house. (MBSS) in Indonesia; • 60% of Guadalcanal Travel Services; and CNCo is a Singapore-registered company and • 50% of TradCo Shipping in Solomon Islands. is a wholly-owned subsidiary of The China Navigation Company Limited, registered in London. Neither company is publicly quoted Pacifica Shipping