Targets and Plans

Using an environmental management indicator to monitoring CO2 emissions from ships and set reduction targets

NYK has been making efforts to address climate change by reducing GHG emissions from the company’s ships. To achieve this goal, the company has introduced an environmental-management indicator to establish and manage reduction targets for vessel CO2 emissions.
Our indicator, which is based on IMO* guidelines, determines CO2 emissions per unit of vessel-transport work, and our proprietary Ecoreport data-management system allows us to calculate our performance and manage our goals. Fiscal 2017 showed a 14.3 percent improvement compared with fiscal 2010, thus allowing us to achieve our first target of a 10 percent reduction.
NYK continues to strive for more efficient operations through the company’s Save Bunker activities to achieve the goals set forth in the company's “More Than Shipping 2018” medium-term management plan.

Environmental management indicator (Based on IMO guidelines) = Environmental load (CO<sub>2</sub> emissions from vessel transportation) / Value added by the business (Mass of cargo in tons x transport distance in kilometers) | Target 1:To achieve 10% improvement in fuel efficiency by fiscal year 2015 from fiscal year 2010 levels. | Target 2:To achieve 15% improvement in fuel efficiency by fiscal year 2018 from fiscal year 2010 levels.
*1 IMO
International Maritime Organization
A UN specialist organization to promote intergovernmental cooperation and formulate treaties and protocols covering technical and legal questions in marine transport and shipping

Environmental management indicator for certain types of vessels

Type of Vessel Environmental management indicator
(Unit: g-CO2/ton・km)
Improvement rate
Fiscal Year 2010 Fiscal Year 2017 From Fiscal 2010 to Fiscal 2017
VLCCs 3.11 3.19 -2.6%
Car Carriers 47.60 45.19 5.0%
Containerships 11.17 7.82 30%

* A decline in the environmental management indicator represents an improvement.
* The index for car carriers is large because they have a small weight/capacity ratio.

In the company's new medium-term management plan “Staying Ahead 2022”, we set mid- and long-term environmental targets.(Please refer to P.29.)
http://www.nyk.com/english/profile/plan/pdf/staying_ahead_2022.pdf

GHQ Environmental Management Program for FY2017
(Reviewed as of March 2018)

Targets Action Plan Intermediate Review Self
Assess
1 Use of ISO 14001 certification to promote environmental activities
  1. Maintain and expand NYK Group multisite environmental certification
  2. Continually improve EMS manual
  3. Acquire ISO14001;2015 certification
  1. Maintain appropriate activities for each region and business sector and expand certification according to customer requirements
  2. Formulate 2015 version of EMS manual
  3. Lead preparations for examining migration of overseas / domestic multisite
  1. 55 companies and 146 sites
  2. partially revised on January 25, 2018
  3. Conducted internal audit of related sites (October to November), external audit of related sites (December to March 2018), and prepared for final migration review on May 18, 2018
2 Adherence to domestic and international laws and regulations, Establish industry and company's compliance standards
  1. Monitor and comply with laws and regulations for operating vessels
  2. Contribute to formulation of international rules for realization of sustainable societies through industry-wide effort
  1. Re-examine NAV9000 audit standard in response to ISO14001;2015
  2. Proactively participate in the formulation of international rules
  1. Transition to ISO14001;2015 (August, 2018)
  2. Participated in boards (industry group boards and IMO MEPC)
3 Reduction of fleet accidents (Ensuring safety)
  1. Eliminate major accidents
  2. Reduce fleet downtime (10 hours/year/vessel)
  3. Conduct emergency preparedness and response
    1. Conduct NAV9000 audits (Shipmanagement companies and ships)
    2. Promote Near Miss 3000 activities (increased companies to be covered)
    3. Hold various safety promotion meetings and safety seminars
    4. Distribute safety information
    5. Conduct safety campaigns
    6. Developed method for preventing engine plant accidents by utilizaing big data
  1. Continue activities to minimize fleet downtime
    1. Conduct emergency response drills and reviews
    2. Conduct media response drill and reviews
    1. Audited 287 vessels / 30 companies, 956 corrective action requests
    2. 44 target companies and 71, 160 reports
    3. Held fleet safety promotion meetings (twice in July), a Global SEMC meeting (August), and meetings among the president, captains, and chief engineers (in August and November and March 2018)
    4. tota of 49 documents
    5. visited 475 vessels / 856 participants
    6. Shared with relevant parties and conducted external forums (Sea Japan, Japan Bari-Ship. etc.)
  1. (overoll) 23.9 hours/vessel (of this 3.5 hours/vessel for engine trouble)
    1. 7 times
    2. conducted drill (December) and employee e-learning (November)
4 Secure the safe operation of all services via sea, land, and air
Share information throughout the NYK Group and with concerned parties
  1. Hold meetings of Safety and Environmental Management Committee
  2. Conduct assemblies of the NYK Group Environmental Management Conference
  3. Conduct emergency drills in NYK building
  1. Held at appropriate times for each vessel type (May-June 2017)
  2. Conducted in November 2017
  3. Conducted twice (September 2017, March 2018)
5 Efforts for saving resources, saving energy, reducing waste, and recycling, etc.
Reduce usage of paper, water, and electricity at headquarters office by 0.1% relative to fiscal 2012-2014 Endeavour to reduce usage of paper, water, and electricity Average rate from fiscal 2012 to 2014 was
-20.9% for paper,
+1,8% for water,
+2.3% for electricity
6 Prevention of global warming (Reduction of emissions)
  1. Set CO2 emission reduction rates using environmental management indices (EMIs)
    "Establish environmental management benchmark: Improve fuel efficieny by 15% from fiscal 2010 levels by fiscal 2018"
  2. Determine total CO2 emissions for the Group
  1. Implement fuel-saving initiatives and collect data for calculating environmental management indices (improvement rate, target number of vessels, and main engine average load rate) from vessels
  2. Use environmental performance data tabulation system (Eco Track)
  1. Target number of vessels: 487
    improvement rate of 14.3% compared to fiscal 2010 (including overseas group companies)
    main engine average load rate: 49.2%
  2. 244 offices in Japan (47 companies) and 149 offices overseas
7 Prevention of air pollution (Reduction of NOx and SOx emissions)
Reduce NOx and SOx emissions
  1. Cooperate with California Speed Reduction Program
  2. Use shoreside power supply for moored vessels (increased vessels supporting AMP container units)
  3. Fit NOx/SOx emission reduction devices
  1. compliance rate at Long Beach: 98% (40 miles)
  2. 41 vessels with AMP container units
  3. adopted water emulsion devices for four newly constructed vessels
8 Marine environment conservation
Adoption of environmentally-friendly technologies, etc.
  1. Advance installation of ballast water management systems
  2. Scrap ships in an environment-friendly manner
  3. Advance installation of our Total Bilge System
  1. Expand installation
  2. Adhere to "NYK Standards" on ship recycling
  3. Actively install on new ships
  1. increased by 11 vessels for a total of 82 vessels
  2. 0 vessels decommissioned
  3. complied with standards for all vessels (six)
9 Stimulation of interest in environmental conservation activities
  1. Conduct environmental training
  2. Conduct environmental e-learning programs
  3. Share information with group employees
  1. Conduct environmental training and workshops
  2. Create environmental e-learning content and improve the number of participants (participation rate)
  3. Report environmental articles in internal newsletter and conduct environmental conservation campaigns
  1. conducted training for new employees and CSR training
  2. participation rate of 96.6% between November and January 2018
  3. continued to post environmental articles and held environmental senryu competition in Japan, in addition to photo contests (June to September)
10 Disclosure of environmental information
  1. Issue NYK Report
  2. Respond to external survey on the environment
  3. Provide up-to-date environmental information through website
  4. Disclose CO2 emissions information
  1. Review, update, and release content
  2. Actively participate in external surveys and present the environmental activities of the Group
  3. Review and update the included items
  4. Update the data for the CO2 e-calculator, participate in the CCWG of the U.S. NPO BSR, perform data evaluations for scopes 1, 2, and 3, and obtained data assurance for scopes 1, 2, and 3
  1. Japanese version released in July and English version released in August
  2. 24 surveys
  3. updated twice (August and January 2018)
  4. Update the data for the CO2 e-calculator, participate in the CCWG of the U.S. NPO BSR, perform data evaluations for scopes 1, 2, and 3, and obtained data assurance for scopes 1, 2, and 3

GHQ Environmental Management Program for Fiscal Year 2018

Targets Action Plan
1 Promotion of environmental activities
Enhance operations of the environmental management system and continually improve EMS manual
  1. Maintain the Group multisite environmental certification and enhance governance at sites
  2. Continually improve EMS manual
  3. Transition to ISO14001:2015
  4. Hold Safety & Environmental Management Committee meeting
  5. Hold the Group Environmental Management Conference
  6. Implement disaster-preparedness drill
2 Adherence to domestic and international laws and regulations, formulation of and adherence to industry and Company standards
  1. Monitor and comply with laws and regulations for operating vessels
  2. Monitor and comply with laws and regulations for non-vessel businesses and facilities
  3. Contribute to make international rules concerning GHG, environmental pollutions and ship-recycling for the sustainable society
  1. Re-examine NAV9000 audit standard in response to ISO9001 2015
  2. Institute comprehensive compliance inspections
  3. Proactively participate in the formulation of international rules
    (conferences held by Japanese Shipowners' Association, MEPC, etc)
3 Reduction of fleet accidents
(Ensuring safety)
  1. Eliminate major accidents
  2. Reduce fleet downtime (10 hours/year/vessel)
  3. Conduct emergency preparedness and response
    1. Conduct NAV9000 audits (Shipmanagement companies and ships)
    2. Promote Near Miss 3000 activities (increased companies to be covered)
    3. Hold various safety promotion meetings and safety seminars
    4. Distribute safety information
    5. Conduct safety and security campaigns
  1. Continue activities to minimize fleet downtime
    1. Conduct emergency response drills and reviews
    2. Conduct media response drill and reviews
4 Efforts for saving resources, saving energy, reducing waste, and recycling, etc.
Reduce the water/paper consumption at the headquarters office and CO2 (electricity/steam) emissions by 0.5% compared to fiscal 2017 Endeavour to reduce usage of paper, water, and electricity
5 Prevention of global warming (Reduction of emissions)
  1. Establish environmental management benchmark (CO2 emission reduction rate): Improve fuel efficiency by 30% from fiscal 2015 levels by fiscal 2030
  2. Determine total CO2 emissions for the Group
    1. Implement fuel-saving initiatives and collect data for calculating environmental management indices (improvement rate, target number of vessels, and main engine average load rate) from vessels
    2. Realization of GHG reduction based on the IMO target and the new medium-term management goals
    3. Consider introducing of internal carbon pricing
  1. Use environmental performance data tabulation system (Eco Track)
6 Prevention of air pollution (Reduction of NOx and SOx emissions)
Reduce NOx and SOx emissions
  1. Increase usage of electronically controlled engines
  2. Fit NOx/SOx emission reduction devices
7 Marine environment conservation
Adoption of environmentally-friendly technologies, etc.
  1. Advance installation of ballast water management systems
  2. Scrap ships in an environment-friendly manner
  3. Advance installation of our Total Bilge System
  1. Expand installation
  2. Adhere to 'NYK Standards' on ship recycling
  3. Actively install on new ships
  4. Speed Reduction Program for marine life conservation
8 Stimulation of interest in environmental conservation activities
  1. Conduct environmental training
  2. Conduct environmental e-learning programs
  3. Share information with group employees
  1. Conduct environmental training and workshops
  2. Create environmental e-learning content and improve the number of participants (participation rate)
  3. Report environmental articles in internal newsletter and conduct environmental conservation campaigns
9 Disclosure of environmental information
  1. Issue NYK Report
  2. Respond to external survey on the environment
  3. Provide up-to-date environmental information through website
  4. Disclose CO2 emissions information
  1. Review, update, and release content
  2. Actively participate in external surveys and present the environmental activities of the Group
  3. Review and update the included items
  4. Disclose and verify scopes 1, 2, and 3 GHG data
  5. Promote volunteer activity related to environmental protection

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