NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core...

26
NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY REPORT 2014

Transcript of NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core...

Page 1: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

NEPTUNE ORIENT LINES LIMITEDSUSTAINABIILTY REPORT 2014

Page 2: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

PurPOse Of rePOrtThis annual report shares the activities and performance of the NOL Group’s environmental, safety, security and social programmes with customers, employees, shareholders and communities at large. The reporting period is from 1 January to 31 December 2014. This report is available online at www.nol.com.sg.

CONteNtsLetter to Our Stakeholders 1

Corporate Profile 2

Promoting Responsible Business Practices 4

Fostering a Safe and Healthy Workplace 5

Securing Supply Chains 10

Protecting the Environment 14

Supporting Communities 22

Page 3: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Letter to our StakehoLderS

We live in an age in which sustainable development has become

an integral part of conducting business. This is also true of the

NOL Group. Against a backdrop of tough operating conditions

in 2014, our team has continued our commitment to corporate

sustainability.

Focusing on responsible business practices, supply chain

security, safety and health, we implemented measures and

initiatives that help us maintain ethical business conduct,

safeguard our assets and operations, as well as enhance employee

well-being both on board our vessels and within the corporate

environment.

Through continual engagements with key stakeholders, NOL

articulated our accountability to our employees, customers and

regulators, learnt about new issues that required addressing and

collaborated to find the best solutions.

I am also delighted to report that NOL’s liner business further

reduced its carbon footprint in 2014, cutting its carbon dioxide

emissions by 40.4% from the 2009 level.

This environmental performance is attributable to

improvements we have made in operational efficiency, voyage

optimisation and technical developments, as well as the injection

of fuel-efficient and environmentally-friendly tonnage into our

global fleet.

In an era of economic and geopolitical uncertainty,

the Group will carry on taking a proactive stance in driving

corporate sustainability, for the good of people, environment,

and business. By preparing for the future, we look to improving

our competitiveness and ensuring that our company will thrive

in the long term.

NG Yat ChuNGGroup President and CEO

Neptune Orient Lines Limited Sustainability Report 2014 1

Page 4: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

COrPOrate PrOfiLe (as at end June 2015)

Core Business

Offices in

countries45

More than

employees7,500

Europe & Middle East

30 - 39 Southeast Asia 50 & above

By gender

eMPLOYee distriButiON (excluding seafarers)By geography

Male Greater China Asia Pacific – others

Female Americas

By age 40 - 49 29 & below

14% 15%

14%

21%

35%

24% 30%

27%

47%

53%20%

Covering all aspects of global cargo container transportation, the NOL Group's business offerings are delivered through APL. APL combines high-quality intermodal operations with the latest information technology to offer 80 weekly services at more than 150 ports worldwide.

aPL GLOBaL serViCe NetWOrk aCrOss MaJOr trade LaNes

North America

South America

Australia

Africa

AsiaEurope

Intra-Asia

Trans-Atlantic

Trans-Pacific Latin-AmericaOceania

Asia-Europe

Intra-Europe

Europe

Asia

Australia

Asia

U.S.

Latin America

Europe U.S.

Asia

U.S.

2 Neptune Orient Lines Limited Sustainability Report 2014

Page 5: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

fiNaNCiaL PerfOrMaNCe

GrOuP COst saViNGs 2014Breakdown of major cost categories

us$430M

21%

77%2%

Terminals, Land Operations, Equipment

Bunker & Network- related

Others

GrOuP COst saViNGs (US$M)

2014

2013

2012

430

470

504

2014

2013

2012

GrOuP VOLuMes Carried (‘000 FEUs)

2,911 FEUs

3,015 FEUs

3,088 FEUs

reVeNue(US$M)

2010 2011 2012 2013 2014

9,422 9,211 8,8319,512 8,617

Net asset VaLue Per share1

(US$)

2010 2011 2012 2013 2014

0.98 0.83 0.80 0.67

1.25

Net (LOss)/PrOfit1

(US$M)

(474) (412) (76) (260)

2010 2011 2012 2013 2014

461

1 2011 and 2012 figures have been restated for comparative purposes due to retrospective application of Amendments to FRS 19: Employee Benefits (Revised), which is effective from financial year 2013.

2 With effect from 2013, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income. Core EBIT from 2010 to 2012 have been restated accordingly.

returN ON eQuitY1

(%)

(16) (18) (4) (14)

2010 2011 2012 2013 2014

16

COre eBit1,2

(US$M)

(355) (183) (167) (76)

2010 2011 2012 2013 2014

578

BasiC (LOss) /earNiNGs Per share1

(US¢)

(18.38) (15.98) (2.95) (10.05)

2010 2011 2012 2013 2014

17.88

Neptune Orient Lines Limited Sustainability Report 2014 3

Page 6: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

PrOMOtiNG resPONsiBLe BusiNess PraCtiCes

Integrity and respect underpin the NOL

Group’s interactions with its stakeholders.

The Group believes ethical interactions

with shareholders, customers, suppliers,

business partners and among employees

must always be upheld. Employees at

all levels are expected to contribute

towards providing a safe and healthy work

environment.

As the Group navigates through a

difficult business environment, it remains

committed to a corporate culture of

compliance. Achieving high standards of

ethics, integrity and business practices in

accordance with all applicable laws is the

responsibility of every employee.

COrPOrate COde Of CONduCtNOL’s Corporate Code of Conduct covers

property, people and conduct, and finance.

The Code is available on the NOL website at:

http://www.nol.com.sg/wps/portal/nol/gcoc.

Employees are required to uphold the

Group’s standards of ethics and integrity in

all their business activities and interactions.

Access to the Corporate Code of Conduct

is readily available in 3 languages –

English, Simplified Chinese and Spanish.

Acknowledgment of compliance is required

every year.

ethiCs COMPLiaNCeThe Ethics Committee, which comprises

senior executives of the NOL Group,

oversees the development, adoption and

compliance with the Company’s ethical

framework, policies and procedures. The

Committee also designs the framework

to investigate ethics matters, and

recommends disciplinary actions.

An ethics hotline, managed by an

independent third party provider, is

accessible to NOL Group employees round

the clock. Any ethics concern or incident

may be reported through the hotline,

which complements other available

channels for reporting ethics matters,

including the Group President and Chief

Executive Officer, or the Chairman of the

Audit Committee of the NOL Board. An

online tool is used by the Group to track

and monitor reported incidents or concerns

for informed decisions to be made in areas

of ethics compliance.

VeNdOr COde Of CONduCtVendors and suppliers to the NOL Group

are also expected to conduct their

business activities in full compliance

with applicable laws of the country and

location of their operations as well as

international regulations. NOL’s Vendor

Code of Conduct articulates legal, ethical

and moral standards expected of its

vendors and external partners.

In 2014, the Group enhanced the

contractual compliance clause to be

included in all new and renewal contracts.

The clause places a greater responsibility

on vendors for compliance with specific

consequences for breach.

The Group’s Vendor Code of Conduct

is available on http://www.nol.com.sg/

wps/portal/nol/vcoc in English, Simplified

Chinese and Spanish.

PrOCureMeNt PraCtiCesGlobal sourcing, purchase of equipment

and fuel as well as managing the

expenditure for vessel and land

operations are important factors towards

business competitiveness and meeting

customer expectations.

The Group strives to implement

procurement best practices and achieve

cost leadership in the industry. It regularly

evaluates suppliers and contracts, and

reviews purchasing processes on bunkers,

equipment, terminals, vessel spares,

vessel slot costs and land. Vendors are

appraised on an ongoing basis to ensure

compliance towards company practices.

The regular vendor audits also track their

operations in relation to health, safety and

the environment.

Through effective vendor and contract

management, NOL continues to establish

and maintain long-term relationships with

reliable, ethical and strategic vendors, who

are capable of delivering the products

and services which the Group requires to

conduct its business.

Ensuring high standards of corporate governance and transparency is vital to achieving sustainability at NOL.

4 Neptune Orient Lines Limited Sustainability Report 2014

Page 7: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

fOsteriNG a safe aNd heaLthY WOrkPLaCe

The NOL Group is committed to fostering

a safe work place and maintaining strict

standards with the highest priority given

to ensuring safety.

The Group’s businesses, APL and APL

Logistics*, maintain strict operational

standards to prevent accidents and injuries.

Policies and programmes are also in place

to maintain and enhance the physical and

mental well-being of their employees.

safetY at aPLAPL advocates “Safety First” on board all

its vessels and at the terminals that

it operates. Its safety practices are in

accordance with international and local

regulations; as well as safety codes and

conventions including:

a) International Convention for the

Safety of Life at Sea (SOLAS);

b) International Convention on Standards

of Training, Certif ication and

Watchkeeping for Seafarers (STCW);

c) International Convention for the

Prevention of Pollution from Ships

(MARPOL);

d) Maritime Labour Convention (MLC); and

e) Pacific Coast Marine Safety Code

(PCMSC).

Contingency planning and preparedness

Contingency planning is a core activity at

APL. Through its Safety and Environmental

Management System (SEMS), APL enables

its shore-based and shipboard personnel

to swiftly respond to an emergency and its

potential environmental impact.

APL outlines the management of

human resources, coordination and

communications procedures, and a range

of technical and logistical responses in its

Vessel Emergency Manual. They would

be applied on board every APL ship and

by key shore-based personnel during

an emergency.

Each year, APL would involve ship and

shore-based personnel in training and

drills to ensure preparedness and that

their responses are in accordance with the

SEMS. SEMS is certified by the American

Bureau of Shipping. APL regularly reviews

and improves on the SEMS so that safety is

not compromised and SEMS stays relevant

in the evolving environment.

Effective bridge management

Notwithstanding that its ships are built

safe by design and equipped with

technologically-advanced equipment,

APL recorded seven consecutive years of zero fatality since 2008

APL average vessel Lost Time Injury Frequency improved 56.7%

APL vessels recorded zero Port State Control detention in 2014

* NOL divested APL Logistics on 29 May 2015

Staying alert and wearing protective gear at all times are a given at all APL terminals.

Neptune Orient Lines Limited Sustainability Report 2014 5

Page 8: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

APL practises stringent bridge management

on board its vessels.

Bridge Team Management (BTM) is

an essential component of APL’s Safety at

Sea initiative that emphasises on sound

navigational procedures and policies.

Through effective BTM, APL ensures that

its Masters and Deck Officers are adept in

anticipating and responding to potential

issues through their respective roles.

The key elements of BTM include:

• Having a detailed passage plan and

maintaining it throughout the ship’s

course;

• Having contingency plans for high

risk areas;

• Recognisingsafetythreatsandtaking

actions to mitigate or avoid them; and

• Communicatingeffectivelythroughout

all types of situations.

BTM training is mandatory for all Deck

Officers. Annual audits are also conducted

to ensure adherence of safety protocols.

In 2014, APL audited seven vessels during

port arrivals, departures and passages.

Through the audit reports, APL checks and

improves on its practices to ensure all its

ships and crew members return safely to

the ports.

Behaviour-Based Safety

APL’s Behaviour-Based Safety (BBS)

programme engages employees in taking

personal responsibility for safety, and

promotes feedback from workplace

observations. Employees also get to

analyse risks by severity and probability, as

well as mitigate the risks with appropriate

control measures.

Every month, APL’s Vessel Safety

Committee on APL ships meets with

the shipboard staff on updates and

issues concerning safety. To encourage

more active participation, topical safety

discussions have been organised from

time-to-time. The ultimate purpose is

for safety precautions to become an

intuitive part of daily operations for

all employees.

Reinforcing safety culture through

training

APL ensures that its personnel are

equipped with not only the most advanced

technical knowledge but also adopt the

right attitude in safety management. As

such, training is important in fostering a

safety culture at APL.

Through its Safety Mentoring

programme, senior Masters are deployed

on board as mentors to conduct workshops

and safety-related training during voyages.

These selected senior Masters undergo

training by professionals who train them

to observe and study the minds and

behaviours of shipboard staff, as well as

communications skills to provide effective

and constructive feedback for corrective

actions or areas of improvement.

APL also runs a Personnel Safety and

Health Training programme that covers

the proper use of equipment such as

high voltage equipment and first-aid

devices including the automatic external

defibrillators that are used to treat sudden

cardiac arrest.

With increased vessel size and

complexity, more collaboration among

the teams on board is necessary to

ensure safe and efficient ship operation.

As such, APL enforces protocols in

Bridge Resource Management, Engine

fOsteriNG a safe aNd heaLthY WOrkPLaCe

6 Neptune Orient Lines Limited Sustainability Report 2014

Page 9: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Resource Management and Marine

Resource Management to enable a

better appreciation of the different

functions of the larger vessels among

shipboard officers.

Proper hazardous materials management

APL also ships hazardous cargo such

as f lammable gases, corrosive and

spontaneous combustibles amongst

others. As it conducts its business, APL

ensures that these products are shipped

in accordance with the International

Maritime Organization’s mandatory

International Maritime Dangerous Goods

Code and all other relevant national and

local regulations governing international

shipping and intermodal transport.

APL exercises extreme care and

follows strict procedures to ensure the

safe shipments of these products.

Meanwhile it plays a responsible role in

helping its customers understand and

comply with the numerous requirements

and regulations governing the

transportation of dangerous and hazardous

cargo through its Hazardous Materials

Response Center.

Promoting safety through collaborations

In 2014, APL launched a Safety Culture Survey

to review the safety needs of its employees,

as well as identify potential room for

improvement. The three-month survey was

conducted jointly with the American Bureau

of Shipping and Lamar University, USA, and

involved more than 1,000 ship and shore

staff. Survey findings – including areas where

APL excelled, and where enhancements can

be made – were analysed to strengthen

policies and devise new strategies to ensure

shipboard safety.

APL remained supportive of all industry

efforts that promote safety. APL continued

to actively collaborate with the relevant

authorities and agencies to strengthen

overall maritime safety. In particular, APL

has worked closely with the Singapore

Maritime and Port Authority and Singapore

Shipping Association to enhance port

safety as well as navigational safety in the

Straits of Malacca and Singapore.

Safety through innovation

APL continues to invest in technology to

enhance safety. Leveraging innovation,

APL deployed laser rangefinders on all

A deck officer uses a laser rangefinder to aid tight vessel maneuvering to ensure the ship berths safely.

its vessels in 2014. The laser rangefinder

provides the teams on the bridge and

mooring station accurate measurement

of the distance and clearance during tight

vessel maneuvering.

Monitoring and analysing performance

APL uses a comprehensive incident

reporting system to monitor and measure

safety and environmental performance. It

tracks Key Performance Indicators such as

Lost Time Injury (LTI) frequency, incidents

and near misses, audit findings, inspection

deficiencies, and port state interventions.

Incidents and near misses are

investigated to determine the root causes

and to take appropriate corrective and

preventive actions. Any lessons to be

learned are extracted and communicated

to the fleet. This system enables setting of

performance targets that drive continuous

improvement. Illnesses aboard ships

are also monitored by the fleet’s Safety

Department.

Vessel safety

Through rigorous application of preventive

and corrective measures, APL has been

Neptune Orient Lines Limited Sustainability Report 2014 7

Page 10: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

recording reduced lost work days from

injuries sustained on the job.

APL recorded seven consecutive years

of zero fatality since 2008. In 2014, APL’s

average vessel Lost Time Injury Frequency

(LTIF) was 0.84 incidents per million man

hours, an improvement of 56.7% compared

to 2013.

The APL fleet also recorded zero Port

State Control detention and no major

accident in 2014.

Terminal safety

APL owns and operates five terminals,

all of which meet applicable national

regulations for port safety.

APL’s Kaohsiung terminal in Taiwan

holds dual certification from the Taiwan

Occupational Safety & Health Management

System and Occupational Health & Safety

Assessment System (OHSAS) 18001:2007.

The terminal recorded six injuries in

2014. Of these, two were involved in traffic

incidents when commuting to and from

work. The other four were being hit or cut

by objects while at work.

The injured parties received medical

treatments and fully recuperated before

resuming to their work. The incidents

were investigated and standard operating

procedures were modified to prevent

recurrence. Training was also conducted

for terminal employees to reinforce their

fOsteriNG a safe aNd heaLthY WOrkPLaCe

safety awareness. In the U.S., LTIF at APL’s

Dutch Harbour and Los Angeles terminals

decreased from 7.2 in 2012 to 5.0 in 2014. This

was a result of concerted efforts in addressing

the safety risks that were prioritised to

be addressed .

In Japan, as a result of the terminals’

stringent safety practices, no lost time

injury have been reported in the past

five years.

Rendering assistance to distressed

victims at sea

APL has been a long standing supporter of

the Automated Mutual Assistance Vessel

Rescue System (AMVER). The AMVER system

is a computer-based voluntary global

ship reporting system used worldwide by

search and rescue authorities to arrange

for assistance to persons in distress at sea.

Sponsored by the United States Coast

Guard, the AMVER system manages a

database of vessel information, sail plans

and location reports from participating ship

owners to identify the best suited ship or

ships to respond to a distress situation.

APL vessels have been commended

annually for their readiness to send

position reports and divert their sail plans

to assist those in distress if needed. The

acknowledgement further underlines

APL’s commitment to safety at sea.

* NOL divested APL Logistics on 29 May 2015

aPL VesseL LOst tiMe iNJurY freQueNCY (PER ONE MILLION MAN-HOURS)

4

2

3

1

2014

0.84

2013

1.94

2012

2.30

2011

3.19

0

8 Neptune Orient Lines Limited Sustainability Report 2014

Page 11: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

safetY at aPL LOGistiCs*At APL Logistics*, data is used to prioritise

and drive safety programmes. Each month,

statistics are drawn with the purpose of

analysing the frequency and severity of

safety incidents by location and cause.

This is followed by a Pareto analysis, which

identifies the top causes for the majority

of the incidents, and thus the area APL

Logistics* need to focus on to determine

the most effective solutions. This may take

the form of custom training, management

intervention, site reviews or work

re-engineering. Implementation is then

scheduled, drawing on both internal and

external resources.

Once solutions are implemented,

tracking continues in order to determine

progress. As the areas of concern fall from

the Pareto analysis, new locations and

causes rise to the top. The improvement

cycle continues in this manner indefinitely.

In addition, monthly topical safety

meetings are conducted by frontline

supervisors to reinforce the message

that the frontline has ownership of their

own safety. Frontline supervisors are also

encouraged to form their own teams to

tackle localised safety concerns, and this

has proven to be very successful.

As a result of the company’s relentless

focus on safety, its Occupational Safety &

Health Administration (OSHA) frequency

aPL LOGistiCs* Osha freQueNCY(NORTH AMERICA)

2.0

1.0

1.5

0.5

2014

1.5

2013

1.4

2012

1.7

0

* NOL divested APL Logistics on 29 May 2015

Annual checks in NOL headquarters in Singapore help employees monitor their general health.

rating in North America continued to

outperform the national average recorded

by the U.S. Bureau of Labor Statistics.

eMPLOYee WeLLNessAcross the NOL Group, employee wellness

programmes are implemented to foster

healthy lifestyle choices, with the aim to

reduce health risk factors and maintain a

productive and active workforce.

In 2014, NOL received the biennial

Singapore Health Award (Gold) from the

Singapore Health Promotion Board for its

efforts in keeping employees healthy. These

include regular lunchtime health talks,

leisure activities and health screenings at

the NOL headquarters.

All APL vessels comply with the

Maritime Labour Convention, which sets

requirements for crew welfare and living

standard on board vessels. Recreational

facilities are also provided to support a

healthy work life balance.

In addition, the vessels are equipped

with WIFI and broadband internet access

for crew members to stay in touch with

their family members and friends. Also, with

Voice Over Internet Protocol technology,

the crew can make phone calls at affordable

rates while at sea and when off duty. These

are but some of APL’s efforts to take care

of its crew and their physical and mental

well-being while at sea.

Neptune Orient Lines Limited Sustainability Report 2014 9

Page 12: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

seCuriNG suPPLY ChaiNs

The NOL Group is committed to upholding

the integrity of its global supply chain.

In view of the ever-evolving regulatory

developments, risks and threats, the

Group continually reviews its security

procedures and protocols to ensure it

responds promptly to any change in

regulatory requirements, or maritime

and supply chain security threats.

In particular, its container shipping

business, APL, is dedicated to supporting

pioneering initiatives and technologies

designed to advance security in the

supply chain.

GLOBaL suPPLY ChaiN seCuritY iNitiatiVesGovernments around the world have

implemented a wide range of supply

chain security initiatives to improve

maritime and intermodal cargo and

operator protection.

Ensuring that the best practices

are adopted, APL and APL Logistics*

have implemented security practices

according to the guidelines of the U.S.

Customs-Trade Partnership Against

Terrorism; Singapore Customs Secure

Trade Partnership and European Union

Authorised Economic Operator.

Through voluntary participation in

these programmes, these businesses

have benefitted from trade facilitation,

including access to customs simplification

and greater market competitiveness.

Customs-Trade Partnership Against

Terrorism (C-TPAT)

The C-TPAT is a joint programme between

the U.S. Customs and Border Protection

(CBP) and a range of global trade

stakeholders. The programme is designed

to provide maximum protection for global

supply chains and enhance U.S. border

security through close cooperation

between the CBP and businesses involved

in import handling and shipment.

APL and its stevedoring services

provider, Eagle Marine Services, as well

as APL Logistics*, have been certified

members of C-TPAT since 2003, and were

successfully re-validated in 2013. They

also provide support where possible

to help their customers in the industry to

revalidate their C-TPAT status.

Secure Trade Partnership (STP)

The STP programme, administered by

Singapore Customs, provides a framework

to guide supply chain stakeholders in

* NOL divested APL Logistics on 29 May 2015

APL won the inaugural Rear Admiral Richard E. Bennis Award for excellence in maritime security

NOL established a Security Operations Centre to proactively address cybersecurity threats

10 Neptune Orient Lines Limited Sustainability Report 2014

Page 13: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

An operations supervisor inspecting reefer containers to make sure they are in optimum condition to ship fresh produce safely and securely.

developing, implementing, and improving

their supply chain security measures and

practices. An enhanced version of STP,

called STP Plus, stipulates more robust

security criteria.

APL has been STP and STP Plus certified

since 2007 and 2009 respectively.

European Union Authorised Economic

Operator

The European Commission (EC) granted

the Authorised Economic Operator (AEO)

status to APL and APL Logistics* in 2009

in recognition of the companies’ reliable

operations and security measures that

comply with customs regulations within

the European Union.

Specifically, the EC is satisfied that

APL and APL Logistics* have carried out

thorough risk assessments in relation to

their businesses in the region, and taken

steps to mitigate the risks identified

through internal procedures and

appropriate control measures.

iNterNatiONaL shiP aNd POrt faCiLitY seCuritY (isPs) The ISPS code is a set of mandatory and

recommended measures developed by

the International Maritime Organization to

enhance security for ships and port facilities

involved in international trade.

In compliance with the ISPS, APL has

developed and implemented security plans

based on threat assessments, as well as

appointed security officers for the company

and all its ships and marine terminals.

eNsuriNG CarGO seCuritYIn compliance with the U.S. Customs

and Border Protection (CBP)’s “10+2”

programme, APL provides advance

information on its cargo shipment bound

for the U.S. 24 hours prior to loading.

APL also adheres to the 24-hour advance

manifest rules in other countries, including

Canada, China, Europe, Japan and Mexico.

APL maintains that container integrity

must be sustained to protect against the

introduction of unauthorised material and/

or persons. Adhering to ISO 17712:2013,

APL complies with the U.S. mandate that

requires all maritime cargo containers

destined for the United States be secured

with a high-security ISO compliant seal.

All laden containers taken into APL’s

custody must be secured with seals that

meet or exceed ISO 17712 high security

seal standards. Additionally, APL also

advises customers who are moving high

* NOL divested APL Logistics on 29 May 2015

value and/or sensitive cargo to adopt

an added level of security by using an

indicative (non-keyed) theft deterrent

barrier seal.

seCuritY eXerCises aNd traiNiNGEvery NOL employee plays a crucial role

in the Group’s security efforts. As such,

all of them undergo a mandatory general

security awareness session on basic supply

chain security processes and procedures

on a global e-learning platform. Security

information is updated regularly to keep

employees abreast of the most recent and

relevant security issues and regulations.

In addition, as part of NOL Group’s

continuing efforts to review and enhance

port and vessel security, APL conducts

annual maritime security exercises

involving its security personnel, law

enforcement agencies and other relevant

stakeholders. In 2014, exercises were held

at its terminals in Los Angeles and Dutch

Harbour in the U.S., Kaohsiung in Taiwan,

as well as Yokohama and Kobe in Japan.

Its Singapore-flagged and U.S.-flagged

ships also carried out separate exercises

in accordance with the requirements of

the ISPS and the Maritime Transportation

Security Act.

Neptune Orient Lines Limited Sustainability Report 2014 11

Page 14: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

In July 2014, APL and one of its

vessels participated in a joint exercise

conducted by the Republic of Singapore

Navy’s Information Fusion Centre (IFC) to

strengthen the security in the Singapore

and Malacca Straits. Managed by the

Republic of Singapore Navy, the IFC is

a regional Maritime Security (MARSEC)

information-sharing centre. IFC facilitates

information-sharing and collaboration

between partners to enhance maritime

security, as well as timely and effective

responses from partner countries for

MARSEC incidents.

aNti-PiraCY MeasuresPiracy poses a serious threat to the safety

of seafarers, and the integrity of global

supply chains. By adopting industry-led

Best Management Practices (BMP), APL

vessels have geared up a robust defence

against piracy.

BMP involves carrying out risk

assessments, building and maintaining

communication channels with the naval

authorities, implementing self-protective

measures, as well as increasing vigilance

and piracy response through training

and drills. Additionally, APL regularly

reviews and updates these practices to

be prepared for different piracy situations.

iNdustrY PartiCiPatiONTo ensure the relevance of its security

practices and measures, APL actively

engages maritime stakeholder groups

on government legislation, initiatives

and issues af fecting the maritime

transportation industry. The groups

include:

• World Shipping Council’s Security

Advisory Committee;

• BIMCO (Baltic and International

Maritime Council) Maritime Security

Committee;

• Singapore Shipping Association’s

Maritime Security Subcommittee;

• U.S. Department of State Overseas

Security Advisory Council; and

• U.S. Coast Guard’s Area Maritime

Security Advisory Committee.

reCOGNitiONFor its commitment to security, APL

received the inaugural 2013-2014 Rear

Admiral Richard E. Bennis Award for

Excellence in Maritime Security. Conferred

by the United States Coast Guard, this

seCuriNG suPPLY ChaiNs

biannual award recognises APL for its

strong commitment to U.S. security

and the marine transportation system,

particularly its outstanding contributions

b eyond Marit ime Transp or tat ion

Security Act requirements, such as APL’s

participation in supply chain security

programmes: C-TPAT, Singapore’s STP

Plus and EU AEO.

iNfOrMatiON seCuritYNOL is committed to respecting personal

data privacy, safeguarding confidential

information and ensuring the security of

data within its custody and control. The

Group’s information security programme

is modelled after the ISO 27001 standard,

which provides requirements for an

information security management system

(ISMS) – a systematic approach involving

people, processes and IT systems to manage

sensitive company information so that it

remains secure.

To safeguard information and processes

concerning the Group’s assets, stakeholders

and vital businesses, all personnel with access

to NOL computer systems and facilities –

from employees, commercial agents to

external contractors – must comply with

12 Neptune Orient Lines Limited Sustainability Report 2014

Page 15: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Deck officers are on watchkeeping round-the-clock for potential hazards and threats.

the Group’s information security policies.

Regular internal audits are also conducted

to ensure compliance with established

policies and standards.

Upholding the Global Privacy Policy

Every NOL employee is required to exercise

care in handling data in accordance with

the Group’s Global Privacy Policy to ensure

the proper collection, use, retention and

distribution of confidential or sensitive data.

To further enhance the implementation of

data privacy compliance, a Personal Data

Protection Committee was formed in 2013

to oversee compliance with the Global

Privacy Policy.

All corporate entities within NOL are

also bound by the International Intra

Group Data Protection Agreement, which

requires them to ensure compliance

with the Global Privacy Policy and

European Union (EU) standards (for transfer

of personal data of EU citizens outside of

the EU) when migrating personal data

within the NOL group of companies.

Ensuring security in cyber space

Cybersecurity threats are ever-evolving

and need to be addressed with a proactive

approach. NOL achieves this through policy

enforcement, preventive measures as well

as regular assessment of the Group’s IT

security landscape to devise short-term

plans and long-term strategies to address

immediate and potential cybersecurity

threats.

In 2014, a Security Operations Center

was established to specifically handle

cybersecurity incidents and implement

processes to proactively address security

threats to the NOL group worldwide.

Plans are underway for NOL to further

adopt the Framework for Improving Critical

Infrastructure Cybersecurity in 2015.

Released by the U.S. National Institute of

Standards and Technology in February

2014, the framework consists of standards,

guidelines, and practices to promote the

protection of critical infrastructure to

manage cybersecurity-related risks.

Neptune Orient Lines Limited Sustainability Report 2014 13

Page 16: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

PrOteCtiNG the eNVirONMeNt

The NOL Group is committed to protecting

the environment it operates in.

As a responsible corporate citizen,

the Group ensures compliance with all

applicable environmental regulations and

legal requirements.

Governed by its Environment Policy,

the company identifies and manages

environmental risks, evaluates its operations

continually to mitigate environmental

impact and implements pollution-

prevention measures.

NOL believes that every stakeholder

plays a role in protecting the environment.

Therefore, NOL and APL have continually

engaged in open dialogue with stakeholders

and encouraged a shared responsibility for

environmental excellence.

eNVirONMeNt POLiCYNOL has an Environment Policy that

commits the Group to sound environmental

stewardship in all of its activities.

Applicable to NOL’s worldwide

operations, the policy underlines the

Group’s commitment to:

• identif y, assess and manage

environmental risks;

• evaluate operations to mitigate

adverse impacts on the environment;

• implement pollution prevention

measures and processes;

• promote activities to conserve

resources and energy and to minimise

and recycle waste; and

• strive for environmental excellence

through continual improvement.

adheriNG tO iNterNatiONaL staNdardsThe NOL Group ensures that all its vessels

adhere to the International Convention

for the Prevention of Pollution from Ships

(MARPOL 73/78), the main international

convention covering prevention of

marine pollution from ship operations or

accidents. The Group also closely follows

the guidelines and standards set by the

International Maritime Organization (IMO),

as well as Flag States and Port States.

Moreover, APL uses metrics tools

provided by ISO14001 to maintain an

effective Environmental Management

System (EMS). These tools enables APL

to measure and analyse the impact of its

business on the environment, in order to

identify and work on areas for improvement.

The scope ranges from lowering its carbon

footprint, using low sulphur fuel, to

adopting advanced systems.

APL reduced its fleet carbon dioxide emissions by 40.4% from the 2009 level

APL vessels operating in Emissions Control Areas comply with stricter sulphur content of just 0.1%

14 Neptune Orient Lines Limited Sustainability Report 2014

Page 17: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

The NOL Group continuously improves on its operational efficiencies to mitigate the impact of its business on the environment.

reduCiNG CarBON fOOtPriNtIn 2014, APL successfully reduced its fleet

carbon dioxide emissions associated with

cargo transportation and handling by

40.4%, compared to its emissions level

in 2009.

The accomplishment was attributable

to improvements in operational efficiency,

voyage optimisation and technical

improvements, as well as the injection of

fuel-efficient and environmentally-friendly

tonnage into its global fleet.

APL’s annual corporate carbon

footprint was verified by third-party

classification society Lloyd’s Register

Group. Carbon dioxide emissions were

reported in accordance with ISO 14064-

1:2006.

Improving Energy Efficiency Design

Index

In 2014, the NOL Group received the

final 10 of 34 newbuildings that were

ordered as part of its vessel fleet renewal

programme.

Technologically-advanced, energy-

and fuel-efficient as well as cold-iron

capable, the newbuildings produce lower

carbon and criteria pollutant emissions

than previous designs. In fact, their Energy

Efficiency Design Index (EEDI) exceeds the

IMO’s requirements on EEDI for the same

type and size of ships.

The newbuildings have been certified

by the Singapore Maritime and Port

Authority (MPA) under its Green Ship

Programme. The programme recognises

Singapore-flagged vessels that adopt

energy-efficient ship designs to reduce

fuel consumption and carbon dioxide

emissions.

The certification qualifies the vessels

for financial incentives by the MPA,

aPL CO2 eMissiONs reduCtiON aGaiNst 2009 LeVeL (%)

50

40

20

30

10

2014

40.4

2012

21.9

2013

33.8

2011

14.3

2010

11.4

0

including a 50% reduction on the Initial

Registration Fees, as well as a 20% rebate

on Annual Tonnage Tax.

Improving vessel operations

APL has been implementing measures

to improve its ships’ environmental

performance. Amongst the approaches,

slow steaming – the reduction of vessel

speed to save on cost and fuel – has

been making the largest contribution

towards lowering its carbon footprint

per TEU. This is made possible by its

Neptune Orient Lines Limited Sustainability Report 2014 15

Page 18: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

PrOteCtiNG the eNVirONMeNt

1

34

79

8

2

1 Rudder Performance: Full spade twisted rudder minimises cavitation and improves performance.

2 Cold Iron Capable: Capable of connecting

to shore power while at berth to reduce emissions.

3 Electronic Main Engine:

Electronic main engine optimises low load operation and reduces fuel oil consumption and emissions.

4 Ballast Water Treatment System:

Early adoption and installation of an approved ballast water treatment system to prevent the spread of invasive aquatic species.

5 Online Energy Efficiency Monitoring System:

Provides integrated data and remote telemetry with graphical analysis of fuel usage to aid optimisation.

6 Voyage Planning Tools:

Effective voyage planning and execution reduces fuel consumption and emissions.

7 Shielded Oil Tanks: Double-hulled fuel

oil tanks protect against oil pollution.

8 Hull Coating: Self-poishing, anti-

fouling paint reduces drag, fuel consumption and emissions.

9 Hull and Trim Optimisation:

Optimised hull form and trim reduces hull resistance and results in less fuel consumed for propulsion.

Green Passport: This voluntary certificate ensures safe and environmentally sound ship recycling by documenting all the hazardous materials used during construction and throughout the life of the vessel.

GreeN features Of a NeWBuiLdiNG

66

5

16 Neptune Orient Lines Limited Sustainability Report 2014

Page 19: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

APL newbuildings are built with optimised hull form and trim, minimising carbon emissions.

advanced route optimisation systems,

which aid in planning the most

fuel efficient and on-time voyages.

APL also improves its vessel operations

through the following:

• Hullandpropellerpolishing;

• Applicationofenvironmentally-friendly

hull coatings;

• Weather routingand real timevessel

controls;

• Trimoptimisation;

• Optimisationofvesselutilisation;

• Optimisation of vessel load through

consolidation and alliances; and

• Electronicenginecontrols.

As a result of these measures, APL has

been recording a steady decline in fuel

consumption, which translates to lower

carbon emissions. APL will persist with

its efforts to identify solutions to further

improve its operation and fuel efficiency.

Calculating carbon footprint

To identify areas of improvement,

the Group measures and analyses data

collected from as many aspects of its

operations as possible.

APL’s carbon reduction initiative began

with a review conducted in 2010 on APL’s

corporate wide fuel consumption from

2009, covering any fossil fuel directly

purchased for and consumed by ships,

terminal cargo handling equipment, and

warehouse material handling equipment.

APL also provides carbon dioxide

emission numbers for cargo movement

over a particular trade lane upon customer

request. Calculated using the Clean Cargo

Working Group (CCWG) methodology,

customers can use these numbers to

determine the most environmentally

friendly way of moving their shipments,

and make environmentally-responsible

choices.

Green terminal facilities

All APL-operated terminals world-wide

employ electric gantry cranes to load and

discharge cargo from vessels. This reduces

diesel emissions from cranes. Also, all

tractors used by APL since 1997 meet all

on-road emission specifications stipulated

by the U.S. Environmental Protection

Agency and the California Air Resources

Board (CARB), and exceed standards for

operation in terminals.

In Los Angeles, APL’s terminal was the

first in the U.S. to have a full-service on-

dock rail facility, which ensures a greater

service reliability and reduced carbon

emissions compared to trucking. It is

also installed with electric rail mounted

cranes for loading rail cars. There are eight

loading and nine storage rail tracks,

which hold the equivalent of nearly

three trains worth of cargo.

BuNker CONsuMPtiON Bunker Consumption (’millions MT) (LHS)

Bunker Consumption/FEU Volume (MT) (RHS)

’millionsMT MT

3.0 1.1

2.4 1.0

1.8 0.9

1.2 0.8

0.6 0.7

0 0.6

0.81MT 0.78

MT

0.96MT

2012 2013 2014

Neptune Orient Lines Limited Sustainability Report 2014 17

Page 20: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Offering sustainable logistics solutions

Over at APL Logistics*, carbon calculators

have been developed to measure carbon

dioxide emissions in the warehouse, as well

as compare various modes of transport for

the most environmentally-friendly logistics

solutions to be made. This contributes

data to a carbon footprint dashboard

introduced by the company to measure

and manage its carbon footprint and that

of its customers.

APL Logistics’* primary focus is helping

its customers manage and ‘green’ their

supply chains. Through various innovative

products, services and diagnostic tools

developed for its customers, APL Logistics*

reduced more than 1.6 million tons in

carbon emissions from 2011 to 2014.

CuttiNG eXhaust Gas eMissiONsNOL recognises that fuel combustion

produces criteria pollutants in the exhaust

gas emissions – including nitrogen oxide,

sulphur oxide and particulate matter.

To mitigate the environmental

impact of exhaust gas emissions, the

Group adopts stringent processes, invests

in technology and infrastructure and

supports industry efforts to find solutions

to reduce such emissions.

Reducing sulphur oxide emissions

Ships trading in designated Emission

Control Areas (ECAs) are required to use

fuel oil on board with a sulphur content

of no more than 0.1% from 1 January 2015,

against a previous limit of 1%.

The stricter rules come into effect

under the International Convention for

the Prevention of Pollution form ships

(MARPOL) Annex VI (Regulations for the

Prevention of Air Pollution from Ships),

specifically under regulation 14, which

covers emissions of sulphur oxide and

particulate matter from ships.

To ensure compliance, APL modified

the tanks and pipelines on all its ECA-

calling vessels to facilitate fuel switch to

low-sulphur fuel when they enter the ECAs

of the Baltic Sea; North Sea; North America;

and United States Caribbean Sea.

Cutting nitrogen oxide emissions

APL has been participating in the Port

of Los Angeles Vessel Speed Reduction

programme, which seeks vessels to

voluntarily reduce their speeds to

12 knots as they approach or depart the

port, thereby reducing the vessels’

nitrogen oxide emissions.

* NOL divested APL Logistics on 29 May 2015

In 2014, all APL vessel calls at the Port

of Los Angeles achieved speed reduction

to 12 knots within 20 nautical miles of

the Point Fermin lighthouse at the port.

In fact, 84% of APL vessel calls saw speed

reduction to 12 knots beyond 20 nautical

miles to 40 nautical miles of the lighthouse.

Practising cold-ironing

Cold-ironing is the process of ships at

berth being connected to shore power

for electricity. During cold-ironing, vessels

shut down auxiliary engines that have

historically powered shipboard electrical

systems and switch to using shoreside

electrical power, reducing emissions from

burning fuel on the ship to keep the systems

running.

The state of California has mandated

cold-ironing for container ships while

berthed in its ports. From 2014, the

requirement is for the fleet’s total onboard

auxiliary engine power generation to be

reduced by at least 50% from the fleet’s

baseline power generation.

In preparation for the regulation, APL

retrofitted six container ships for cold-

ironing in 2014, while 28 of its newbuildings

came fully cold-iron capable.

PrOteCtiNG the eNVirONMeNt

18 Neptune Orient Lines Limited Sustainability Report 2014

Page 21: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

APL has been cold-ironing its vessels’

engines while they berthed in the ports

of Los Angeles and Oakland since 2011,

before the regulation kicked-in. With its

vessels’ auxiliary diesel engines switched

off after berthing, emissions of nitrogen

oxide, sulphur dioxide, and particulate

matter are reduced.

To facilitate cold-ironing by the industry

in California, APL is also working with the

Pacific Merchant Shipping Association to

provide feedback and recommendations

for the at-berth regulations to CARB.

MiNiMisiNG eNVirONMeNtaL iMPaCtNOL is mindful that many aspects of a ship

can adversely affect the environment,

ranging from its construction material,

container performance, operational

discharge, to recycling process. It is

imperative to consider all possible

environmental impacts that a vessel

could create and implement preventive

or mitigative measures to ensure

sustainability.

Managing ballast water

Cargo carriers use a huge amount of water

for stability and maneuverability during

transit. Known as ballast water, it is often

taken on in the coastal waters in one region

after ships discharge waste water or unload

cargo, and discharged at the next port of

call, wherever more cargo is loaded.

While ballast water is essential for

safe and efficient shipping operations,

APL is mindful that ballast water discharge

can contain invasive species which when

transferred, may survive to establish

a reproductive population in the host

environment, out-competing native species

and multiplying into pest proportions.

Committed to protecting ocean

biodiversity, APL takes great care in

ensuring that its vessels do not introduce

such species at the various ports they call.

APL vessels actively perform mid-

ocean ballast water exchange. The

approach replaces most of the coastal

water with open ocean water, removing

most of the coastal organisms that were

originally entrained in the ballast tank.

Meanwhile, every new vessel of APL

is equipped with the latest ballast water

treatment technology, compliant with

the IMO Ballast Water Management

Convention.

APL recognises the importance

of supporting the global momentum

in tackling the ballast water issue and

developing solutions through strategic

partnerships. As a member of the Global

Industry Alliance for the GloBallast

Programme, a joint initiative of IMO,

United Nations Development Programme

and Global Environment Facility, APL joins

the cause to assist developing countries in

reducing marine bio-invasions.

Sustainable ship disposal practices

NOL studies industry best practices and

reviews sustainable ship-recycling practices

as part of its ongoing sustainability efforts.

For end of life vessels, NOL only works

with a shortlist of buyers who hold ISO

certifications for safe handling and disposal

of hazardous materials. These buyers have a

track record of working with major carriers,

and have demonstrated best practices in

ship demolition.

All APL line-haul vessels have a Green

Passport, which documents the hazardous

materials used in construction of the

ships. The Passport accompanies the ships

throughout their operating lives and is

updated during equipment changes. Its

ultimate owner will then deliver the Green

Passport with the vessel to the recycling

facility to allow for proper processing of

A modular Alternative Marine Power box on an APL vessel connects shore-side power to the vessel when it berths at the ports of Los Angeles and Oakland.

Neptune Orient Lines Limited Sustainability Report 2014 19

Page 22: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

the materials, in order to minimise any

unnecessary risks to the environment and

human health during the recycling process.

Regulating sewage discharge

With limited capacity in sewage storage in

holding tanks, proper planning is critical in

reducing the risk of sewage discharge into

the sea. Environmental impact resulting

from sewage discharge from ships include

the introduction of nutrients which cause

algal blooms and reduced oxygen levels,

threatening marine life. Potential health

risks for people who come into contact

with polluted water during recreational

activities or who consume contaminated

seafood can arise.

APL complies with MARPOL Annex IV

through its Safety Management System

that is audited by classification societies

for compliance. With its stringent controls,

quality management and training, APL has

eliminated the risk of incidental sewage

discharge and achieved its annual goal of

no accidental discharge in 2014.

Improving container performance

APL requires all its container floorboard

suppliers to be accredited by the Forest

Stewardship Council and to use only

renewable sources of wood supplies. In

addition, new containers use water-based

sealants that does not contain any volatile

organic compounds, as well as eco-friendly

water-based paint which does not release

harmful vapours during the drying process.

To maintain refrigerated cargo at the

necessary temperature, APL has 2,248

electrical plugs in all of its container

yards on the U.S. West Coast. This results

in carbon reduction and a corresponding

reduction in generator fuel, compared to

when diesel generators were used in port

to supply power to the refrigerated

containers.

eNGaGiNG stakehOLdersCommunication, education and

involvement are key to gaining the

understanding, support and participation

of our stakeholders on our journey

towards environmental sustainability.

Providing information and training

The NOL Group keeps its employees

worldwide informe d on global

environmental issues and developments,

as well as the Group’s environmental

ef forts. This is done through its

sustainability reports, the intranet, and

other forms of internal communications.

On a regular basis, APL also conducts

environmental seminars for the relevant

departments and functions of the liner

business. This practice is part of a systematic

series of outreach initiatives since 2009 to

engage employees on a more personal

level. By helping employees understand

the significance of its operational impact

on the environment, NOL hopes to

motivate them to proactively contribute to

the Group’s continuous efforts in ensuring

environmental sustainability.

APL also conducts mandatory practical

training for its crew members aboard

ships, covering a wide-array of subjects

that range from company policies and

procedures, flag state requirements,

Vessel General Permit inspections to

Hazardous Materials handling. There is

also a computer based training programme

aboard every vessel that all crew members

must complete.

sustaiNiNG PartNershiPsIn this multi-stakeholder environment,

it is impossible to achieve sustainability

alone. Forming partnerships with industry

groups allow all stakeholders to combine

their attributes and efforts in order to

achieve more.

Clean Cargo Working Group (CCWG)

CCWG is a global business-to-business

initiative dedicated to environmental

performance improvement through

PrOteCtiNG the eNVirONMeNt

20 Neptune Orient Lines Limited Sustainability Report 2014

Page 23: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Self-polishing, anti-fouling paint are used to coat APL vessels to reduce drag, fuel consumption and harmful emissions.

measurement, evaluation and reporting

in maritime transportation management.

A member of the CCWG since 2004, APL

makes use of practical tools developed by

the group to measure, evaluate and report

the environmental impacts of its global

goods transportation. APL uses the tools

to track and benchmark its performance,

and report in a standard format to its

customers, who will then be able to

make informed decisions in choosing an

environmentally-responsible carrier. Today,

CCWG tools represent the industry standard

for measuring and reporting ocean carriers’

environmental performance on carbon

dioxide emissions.

CCWG is made up of about 40 member

companies, including top world liner fleet

operators and over a dozen global shippers.

As an elected member of the group’s

Steering Committee, APL helps to oversee

CCWG’s approach in driving improvements

in global goods transport, namely

performance measurement and reporting,

as well as promotion of environmentally

responsible practices.

Coalition for Responsible Transportation

(CRT)

APL has been a CRT member since 2011

and was elected to CRT’s Board of Directors

in 2012.

The CRT is a coalition of importers,

exporters, trucking companies, clean truck

manufacturers, and ocean carriers who have

gathered to facilitate the implementation

of practical and sustainable solutions to

reduce port truck pollution at U.S. ports.

CRT seeks to balance the environmental

needs of port communities with an efficient

flow of commerce.

North American Marine Environment

Protection Association (NAMEPA)

APL is a board member of NAMEPA

and supports its efforts in promoting

environmental awareness amongst the

wider public and school communities.

Through its activities, NAMEPA emphasises

on the importance of the world’s oceans

and the maritime industry’s role and actions

to preserve it.

Alaska Maritime Prevention and

Response Network (Network)

In 2014, APL became a board member of

the Network, a non-profit maritime

organisation that provides management

practices and capabilities exceeding

environmental regulations to vessels

operating in Alaska.

To ensure compliance with the U.S.

Coast Guard’s requirements and U.S.

federal law, APL enrolled vessels transiting

Alaska waters or calling port of Dutch

Harbour into the Network’s Alternative

Planning Criteria (APC) plan. The APC

allows vessel operators like APL to propose

alternative pollution prevention measures

where standard regulatory compliance

measures are not feasible.

reCeiViNG reCOGNitiONThe Group’s environmental performance

continued to be recognised. It received the

following awards in 2014:

• Blue Circle Award by Port Metro Vancouver

The award recognises APL’s emissions

reduction achievement in 2014 under

the EcoAction Programme, which

promotes low emissions practices for

ocean-going ships entering the port.

APL has been winning the award every

year since the programme started

in 2010.

• 75 Green Supply Chain Partners by Inbound Logistics magazine

The award recognises APL’s efforts

towards attaining its carbon emissions

reduction target, including its green

ships and energy-efficient initiatives,

such as slow steaming and upgrading

cargo handling equipment at APL

terminals.

Neptune Orient Lines Limited Sustainability Report 2014 21

Page 24: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

suPPOrtiNG COMMuNities

The NOL Group is committed in developing

its talent pool, strengthening its expertise

and enhancing its capabilities through

training and innovating solutions. In 2014,

APL invested over 7% of its operational

human resource costs in training its

shipboard and shore-based staff. In addition

to on-going training initiatives, APL also

specially developed a training programme

to help its seafarers better appreciate the

new technology onboard its newbuildings.

As a global citizen, NOL believes in

doing its part to improve lives around the

world. It delivers aid, supports education

and enables the communities where the

Group has a presence.

suPPOrtiNG eduCatiONNOL recognises that education is a key

pillar in developing talent for the long

term sustainability of the maritime industry.

As such, NOL initiates and supports the

promotion of education, training and

programmes that can lead to employment

in the industry.

In Singapore, the NOL Lua Cheng Eng

Memorial Scholarship – which includes a

S$12,000 grant and internship opportunity

at NOL – is given to two outstanding

business students at the Singapore

Management University (SMU) every year.

NOL endowed the S$400,000 scholarship

programme in the name of the late Mr Lua

Cheng Eng, former Chairman and CEO of

the NOL Group, at SMU in February 2011.

In addition, NOL sponsored a total

of S$500,000 over a course of five years,

starting from 2011, to the building of Kwa

Geok Choo Law Library at the Singapore

Management University. Named after

the late Madam Kwa Geok Choo, wife of

Singapore’s first prime minister, the late

Mr Lee Kuan Yew, the law library is expected

to be fully operational by 2017.

To raise the profile of seafaring

and maritime jobs and help develop a

strong and sustainable pool of maritime

talents in Singapore, APL supports

industry programmes that are driven by

stakeholders including the Singapore

Maritime Officers Union, Maritime Port

Authority of Singapore, Singapore

Workforce Development Agency and

the Singapore Shipping Association. This

includes giving talks at career fairs and

industry initiatives to create awareness

and inspire young talents to pursue a

profession in the maritime industry. An

example of an industry initiative which

APL participates in is the Tripartite Nautical

* NOL divested APL Logistics on 29 May 2015

NOL continues to enhance the maritime talent pool through scholarships, internships and industry programmes

APL shipped over us$9.9 million worth of medical aid to help patients in Bangladesh and the Philippines

22 Neptune Orient Lines Limited Sustainability Report 2014

Page 25: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Yeo So Phia (right) was one of two recipients of the NOL Lua Cheng Eng Memorial Scholarship in 2014.

school with disadvantaged youths, as well

as a retirement home. In Scottsdale, USA,

monies and presents were donated to an

adopted special-needs family during the

holidays in 2014.

In Singapore, the NOL Group supported

the Republic’s national day celebrations

in 2014 and was the official logistics

partner of Singapore Day 2014 in London,

England, which was organised to engage

its overseas citizens. APL sponsored the

use of containers for both events although

it also undertook the two-way sea freight

transport between Singapore and London

for the latter.

deLiVeriNG aidFrom July 2014 to June 2015, APL’s

partnership with non-profit organisation

AmeriCares brought more than US$9.9

million worth of medications and supplies

to Bangladesh and the Philippines. The

medical aid was used by AmeriCares’

qualified health care partners to address

the needs of local patients.

APL also collaborated with MedShare,

a non-profit organisation that recovers

and redistributes surplus medical supplies

and equipment to those most in need

when Typhoon Haiyan hit Southeast

Asia, particularly the Philippines in

November 2013. From December 2013

through March 2014, APL provided free

port-to-port shipping of medical supplies

from the U.S. to the Philippines.

In April 2014, a widespread fire in

Valparaiso, Chile, left more than a dozen

dead and up to 12,000 people homeless.

Responding to the tragedy, the APL

Logistics* team in Chile raised funds,

and collected food and clothing for the

victims. These were then distributed by a

group of APL Logistics* volunteers using

company trucks.

* NOL divested APL Logistics on 29 May 2015

Training Awards, a programme that trains

Singaporeans to serve as nautical officers

on board Singapore’s commercial ships.

In the Americas, APL provides

internship opportunities to select students

of exemplary character and initiative from

merchant marine academies in the U.S.

These interns are either licensed merchant

marine officer candidates or students

majoring in International Maritime

Business, Marine Safety and Environmental

Protection, or related degree courses. The

internship programme offers practical

knowledge and valuable experience in

fleet operations under the mentorship of

APL managers. Some of these interns joined

APL as employees upon their graduation.

Over the past two years, APL Logistics*

in Chile has been providing pre-university

classes to its employees or their children to

help them prepare for university entry tests.

APL Logistics* invited university lecturers to

tutor the students on a range of subjects.

The classes took place on APL Logistics*

premises.

suPPOrtiNG COMMuNitiesAPL also cares about the well-being of

its communities. In Costa Rica, Christmas

parties were organised for an orphanage, a

Neptune Orient Lines Limited Sustainability Report 2014 23

Page 26: NEPTUNE ORIENT LINES LIMITED SUSTAINABIILTY ......COrPOrate PrOfiLe (as at end June 2015)Core Business Offices in countries 45 More than employees 7,500 – othersEurope & Middle East

Neptune Orient Lines Limited9 North Buona Vista Drive#14-01 The MetropolisSingapore 138588 Tel: +65 6278 9000 Fax: +65 6278 4900www.nol.com.sgCo. Reg. No.: 196800632D