International standards by which corporate responsibility can be measured include the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles for Business and Human Rights (UNGP). Companies are required to carry out a risk-based due diligence with respect to the human rights as well as environmental impact of their business activities, including their value chain.

In the report’s foreword, CEO of KLP, Håvard Gulbrandsen, states: “We hope that the report can help raise awareness of the severe human and environmental risks beaching can entail for shipping industry companies, their customers, and also for other investors. […] KLP hopes to encourage investors to work together to engage with companies on improving labour and environmental conditions. The shipping industry is and will be an important part of Norwegian investors' portfolios for the foreseeable future. KLP's goal is to work towards a future where responsible shipbreaking is the industry standard.”

NOTES

[1] KLP is Norway's largest life insurance company. Kommunal Landspensjonskasse (KLP) delivers financial and insurance services to the public sector, enterprises associated with the public sector and their employees.

[2] International Law and Policy Institute (ILPI) is an independent institute focusing on good governance, peace and conflict, and international law. Their approach to solving global challenges is based on the integration of law and social sciences and on bridging the gap between academia and politics. They provide research, analysis, policy advice, process support and training to clients ranging from private companies and institutions to governments and international organisations.

[3] Major companies such as H&M, Tetra Laval, ABB, Philips, Volvo and Volkswagen do not want to be associated with substandard shipbreaking practices in South Asia and have asked their forwarders – the shipping companies they use to transport their goods – to adopt sustainable ship recycling policies. For more information click here.