Platform News – SAVE THE DATE: Ship Recycling Lab on 20-21 September in Rotterdam

Recognising the need for visionary solutions for ship recycling, we are hosting our first Ship Recycling Lab: Transformation through Innovation on 20-21 September 2022 in Rotterdam, Netherlands.

 

The event will bring together forward-thinking stakeholders from the maritime, recycling and steel sectors, financial institutions and policy makers to showcase and exchange ideas for best practices and strategies for ship demolition, design, waste management and material recovery in line with ethical circular policy goals.

 

Providing visibility to companies that have developed solutions, including innovative cutting techniques, new state-of-the-art waste handling procedures, cradle to cradle concept design, and clean steel breakthrough technologies aimed at achieving a zero-carbon steel making process, the Lab intends to set the bar for tomorrow’s ship recycling. 

 

Come join us and 200+ progressive stakeholders for networking opportunities, inspiring keynote speaker sessions, thought-provoking presentations, interactive panel discussions, a photo exhibition from Bangladesh and a live performance at the iconic Kunsthal museum in the shipping hub of Rotterdam in September!

 

Register and buy your tickets now at www.shiprecyclinglab.org to get a €200 Early Bird Discount. 

Any questions? Contact us at events@shipbreakingplatform.org.
 

We encourage you to join the discussions on Twitter using the hashtag #SRLab. You can also follow the event organisers @ShipRecLab and @NGOShipbreaking.

 

Press Release – Platform publishes list of ships dismantled worldwide in 2019

Most shipping companies continue to opt for the highest price at the worst scrapping yards

 

According to new data released today by the NGO Shipbreaking Platform, 674 ocean-going commercial ships and offshore units were sold to the scrap yards in 2019. Of these vessels, 469 large tankers, bulkers, floating platforms, cargo- and passenger ships were broken down on only three beaches in Bangladesh, India and Pakistan, amounting to near 90% of the gross tonnage dismantled globally.

 

"Bangladesh remains the favoured dumping ground for end-of-life ships laden with toxics. There is wide-spread knowledge of the irreparable damage caused by dirty and dangerous practices on tidal mudflats, yet profit is the only decisive factor for most ship owners when selling their vessels for breaking."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 26 workers lost their lives when breaking apart the global fleet. The Platform documented accidents that killed 24 workers on the beach of Chattogram (formerly known as Chittagong), making 2019 the worst year for Bangladeshi yards in terms of fatalities since 2010. At least another 34 workers were severely injured. Whilst the total death toll in Indian yards is unknown, local sources and media confirmed at least two deaths at shipbreaking yards that claim to be operating safely, but have failed to be included in the EU list of approved ship recycling facilities [1].

 


DUMPERS 2019 – Worst practices

 

UNITED ARAB EMIRATES and GREECE top the list of country dumpers in 2019. UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2019: 45 ships in total. Greek owners closely followed with 40 beached vessels.

 

The ‘worst corporate dumper’ prize goes to the Taiwanese container shipping line Evergreen. In the last years, the company has been under the spotlight for its damaging shipbreaking practices. In January 2018, the Norwegian Central Bank announced its decision to divest from Evergreen due to the ship owner’s repeated sale of vessels for dirty and dangerous breaking on the beach of Chattogram. Since then, the company has clearly not changed its policy. Eleven of Evergreen’s vessels ended up in South Asia in 2019. On 23 July, cutter man Shahidul lost his life while working at Kabir Steel’s Khawja shipbreaking yard in Bangladesh. Shahidul was dismantling Evergreen’s EVER UNION when he fell from a great height. He died on the spot.

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Dry bulk shipping company Berge Bulk is runner-up for worst corporate practice. Four ships owned by the Bermuda-based ship owner ended up in Bangladesh for dirty and dangerous breaking. Berge Bulk’s scrapping practices should prompt the Lloyd’s List Asia Awards to withdraw the prize for “Excellence in Environmental Management” the company recently received for its commitment to environmental conservation. Indeed, there is nothing laudable about putting workers lives at serious risk and polluting sensitive coastal environments.

 

Danish container shipping giant Maersk scrapped four vessels on the Indian beaches last year. The company did not hesitate to leave the Danish shipping registry in order to circumvent the new EU laws requiring the use of EU-approved recycling facilities, and at least two of the ships even left EU waters in breach of an international and European ban on the export of hazardous waste to developing countries. In November, Bangladesh Courts condemned the illegal breaking of Maersk’s FPSO North Sea Producer which had been sold to cash buyer GMS and fraudulently exported from the UK in 2016. Criminal investigations are underway in the UK.

 

Other well-known shipping companies that in 2019 dumped their toxic ships on South Asian beaches include: Costamare, CMA CGM, Diamond Offshore, ENSCO, MOL, MSC, NYK Line, Tidewater and Vale.


In India, many yards now boast having upgraded their beaching facilities to comply with the requirements set by the International Maritime Organisation’s Hong Kong Convention. Recent inspection visits by the European Commission in Alang and media reports, however, flag serious concerns related to pollution of the intertidal area; absence of medical facilities; breaches of labour rights and lack of capacity to safely manage a number of hazardous waste streams, including mercury and radioactive contaminated materials that are typically found on offshore oil & gas units. No facility located in South Asia meets the safety and environmental requirements for EU approval.

 

All ships sold to Chattogram, Alang and Gadani pass via the hands of scrap-dealers, better known as cash buyers. These pay the highest price for end-of-life vessels and are inherently linked to the beaching yards. Cash buyers typically re-name, re-register and re-flag the vessels on their last voyage. Black-listed flags, such as Palau, Comoros and St Kitts & Nevis, were particularly popular in 2019: almost half of the ships sold to South Asia changed flag to one of these registries just weeks before hitting the beach. None were beached under an EU flag, despite many vessels having been sold by a European shipping company.

"Policy makers need to adopt effective measures to divert ships towards the sites that have been approved by the EU. The fact that old ships are registered under flags known for the poor implementation of international maritime law sheds serious doubt over the effectiveness of legislation based on flag state jurisdiction only, including the EU Ship Recycling Regulation."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Today banks, pension funds and other financial institutions are actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach, taking into account social and environmental criteria, not just financial returns, when selecting asset values or clients [2]. Police and environmental authorities are also increasingly monitoring the movements of end-of-life vessels. Following the Seatrade judgement in the Netherlands where, for the first time, a ship owner was held criminally liable for having intended to sell four end-of-life ships to Indian beaching yards, several other cases of illegal traffic are under investigation. [3] Aiding and abiding environmental crime is equally punishable: insurers, brokers and maritime warranty surveyors could therefore also be held liable. By unravelling the murky practices of shipbreaking, these cases highlight the importance of conducting due diligence when choosing business partners.

"Clean and safe solutions are already available. We applaud companies, such as Dutch Van Oord, that have had a responsible ship recycling policy ‘off the beach’ for many years. Whilst other ship owners lament over the lack of capacity to recycle sustainably, only 31 vessels were recorded recycled in EU-approved facilities, which represent a minor fraction of what these yards are able to handle."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the data visualization of 2019 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2019, click here. *

 

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

 

NOTES

 

[1] The EU Ship Recycling Regulation became applicable on 1 January 2019. According to the Regulation, EU-flagged vessels have to be recycled in one of the currently 41 approved facilities around the world included in the EU list. EU-approved ship recycling facilities must comply with high standards for environmental protection and workers’ safety. The EU list is the first of its kind; is the only list of facilities that have been independently audited; and provides an important reference point for sustainable ship recycling. Any ship owner that wants to opt for safe and clean ship recycling can simply choose one of the 41 facilities that are now included on the List.

 

[2] In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies, including containership company Evergreen, due to their beaching practices.

 

[3] In Scotland, Diamond Offshore and cash buyer GMS are still under investigation for having attempted to illegally export three heavily contaminated platforms that had operated in the North Sea and were cold-stacked in Cromarty Firth. The platforms have been detained in Scotland since January 2018.

 

Press Release – NGOs release new report on North Sea oil and gas recycling

The NGO Shipbreaking Platform released today a research report titled “Recycling Outlook: Decommissioning of North Sea Floating Oil & Gas Units” during a seminar held in Oslo, Norway.

 

With the oil and gas sector seeing a downturn since 2014, the Platform has documented an increasing number of offshore units sold for scrap. While the recycling of fixed installations occurs under strict regulations, there are serious concerns regarding the recycling of floating structures, which classify as vessels. Around 200 floating structures have been identified as scrapped globally since 2015 – an estimated 40% of these assets ended up on South Asian beaches, where they were broken up under conditions that cause irreparable damage to the coastal environment and put workers’ lives and health at risk.

 

Numerous  floating platforms and oil and gas structures can be found in the North Sea, where the global oversupply in the rig-market is pushing the oldest assets to be scrapped. There are currently 59 floating mobile drilling rigs in the North Sea, 18 of which were built before 2001. Whilst some of the older units might be converted/upgraded, it is estimated that most of them will be scrapped in the coming years. So far, the only structure which operated in the North Sea and has been traced to a South Asian beaching yard is the FPSO North Sea Producer. There is a real risk, however, that we will see more of these cases coming up in the near future with more decommissioning projects in the North Sea.

 

The NGO Shipbreaking Platform advocates for the use of green recycling capacity already existing in the region. Indeed, North Sea recycling yards have years of experience decommissioning fixed oil and gas structures. There are several dry docks and contained slipway facilities where the dismantling of  floating structures can take place safely and with due regard for labour and environmental concerns. Ehancing the recycling of offshore structures and ships in Europe would furthermore bring opportunities for the many workers that were laid off  after the recession in the oil and gas sector in 2014.

 

The report was published with the support of Norwegian pension fund KLP. KLP promotes, as an essential part of its responsibility, practices of corporate responsibility and responsible investment. As a large investor in Norwegian companies, and companies based outside of Norway operating in the North Sea, it strives to ensure the responsible recycling of ships and offshore assets, aiming at contributing to a shift towards better practices in the sector.

Photos from KLP's seminar "Responsible disposal of ships and rigs" - © Cato Gustavson/KLP

Platform News – Norwegian pension funds turn their attention towards Indian shipbreaking practices

Last week the Council on Ethics of the Norwegian oil pension fund (Government Pension Fund Global) announced that it will turn its attention towards Indian shipbreaking practices. This may well result in further divestments from shipping companies with poor shipbreaking records. 

 

ivest from companies, including container line Evergreen, selling their end-of-life vessels to shipbreaking yards located in Pakistan and Bangladesh due to an unacceptable risk that the companies are contributing to serious environmental damage and gross violations of human rights”. 

 

KLP, Norway’s largest private pension fund, followed suit and blacklisted the same companies. In January, KLP also blacklisted Nordic American Tankers (NAT) following the sale of ten oil tankers for dirty and dangerous scrapping on beaching yards in South Asia. The Bermuda-registered company, controlled from Norway by Herbjørn Hanson, was firstly confronted by KLP and criticised by Norwegian press for having sold eight ships for scrapping to South Asia in 2018, ensuring NAT a 80 million dollar scrapping revenue. Five vessels ended up in Chittagong, Bangladesh; three ended up in Alang, India. The sale of two additional vessels to Bangladeshi yards with terrible accident records prompted KLP to blacklist NAT earlier this year.

"KLP’s goal is that no ship ends up on a beach where irresponsible scrapping practices take place. It is the ship owners’ responsibility to identify which standards, routines and processes they need to comply with to ensure safe and responsible ship recycling."
Håvard Gulbrandsen - CEO - KLP

The European Commission recently announced that two Indian yards (i.e. Priya Blue Industries Pvt. Ltd, Shree Ram Vessel Scrap Pvt. Ltd) that applied for inclusion in the European List of ship recycling facilities do not comply with the EU Ship Recycling Regulation. The site inspections and technical assessments, done by the classification society DNV GL, identified several areas where the yards do not meet the requirements for clean and safe ship recycling.  

 

 

Press Release – Platform publishes list of ships dismantled worldwide in 2018

Record-breaking 90% of end-of-life tonnage scrapped on South Asian beaches

 

According to new data released today by the NGO Shipbreaking Platform, 744 large ocean-going commercial vessels were sold to the scrap yards in 2018. Of these vessels, 518 were broken down on tidal mudflats in Bangladesh, India and Pakistan, amounting to a record-breaking 90,4% of the gross tonnage dismantled globally. 

"The figures of 2018 are shocking. No ship owner can claim to be unaware of the dire conditions at the beaching yards, still they massively continue to sell their vessels to the worst yards to get the highest price for their ships. The harm caused by beaching is real. Workers risk their lives, suffer from exposure to toxics, and coastal ecosystems are devastated. Ship owners have a responsibility to sell to recycling yards that invest in their workers and environment."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Last year, at least 35 workers lost their lives when breaking apart the global fleet. The Platform documented at least 14 workers that died in Alang, making 2018 one of one of the worse years for Indian yards in terms of accident records in the last decade. Another 20 workers died and 12 workers were severely injured in the Bangladeshi yards. In Pakistan, local sources confirmed 1 death and 27 injuries. Seven injuries were linked to yet another fire that broke out on-board a beached tanker. 

 


DUMPERS 2018 – Worst practices

 

UNITED ARAB EMIRATES, GREECE and UNITED STATES OF AMERICA top the list of country dumpers in 2018. UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2018: there were 61 ships in total. Greek owners, beached 57 vessels out of a total of 66 sold for demolition. American owners closely followed with 53 end-of-life vessels broken up on South Asian tidal mudflats. 

 

The ‘worst corporate dumper’ prize goes to the South Korean liner Sinokor Merchant Marine. The company, which has been loss-making and is about to merge its container operations with Heung-A, sold 11 ships for breaking on the beaches in 2018: eight vessels ended up in Bangladesh and three in India, where in April, during the demolition of Sinokor’s PLATA GLORY at Leela Ship Recycling Yard [1], a worker died hit by a falling iron plate. 

 

Norwegian Nordic American Tankers (NAT) - incorporated in Bermuda and stock-listed in New York - is runner-up for the ‘worst dumper’ prize. Last year, NAT reported having earned USD 80 million for the sale of eight vessels for breaking. Three were sold to Alang for breaking and five were sold to breakers in Chittagong. According to local sources in Bangladesh, the cutting operations of these ships started without required government authorisations. The sale of two additional vessels to yards in Bangladesh with particularly poor track records and where two workers were killed in 2018, prompted Norwegian pension fund KLP to blacklist the company. 

 

Seven vessels were sold to beaching yards for dirty and dangerous scrapping by German owner Dr Peters GmbH & Co KG. According to local sources, fitter Md Samiul lost his life while scrapping Dr Peters’ DS WARRIOR in December 2018.

 

Other known shipping companies that in 2018 sold their vessels for the highest price to the worst breaking yards include: Chevron, Costamare, H-Line, Louis plc, Seabulk, SOVCOMFLOT, Teekay, Zodiac Group and CMB. Belgian CMB is still under investigation for the export of the MINERAL WATER to Bangladesh in 2016.


With the oil and gas sector seeing a downturn in the last couple of years, the Platform has documented an increase in offshore units that have gone for scrap. Out of the 138 oil and gas units which have been identified as demolished in 2018 alone, 96 ended up on the beaches of South Asia. Figures include 81 small-sized tug/supply ships and 33 semi-submersible platforms. Noble Corp, ENSCO, Tidewater, Diamond Offshore and Petrobras are amongst the biggest offshore players that dump their assets on the South Asian beaches. While most assets were exported from either East Asia or America, Diamond Offshore and cash buyer GMS are under investigation in Scotland for having attempted to illegally export three platforms that had operated in the North Sea and were cold-stacked in Cromarty Firth. The platforms have been under arrest in Scotland since January 2018.

 

Ship owners are facing increased pressure from investors and credit providers to stop selling their ships to beaching yards. In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies due to their beaching practices. Today, banks, pension funds and other financial institutions are actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach, taking into account social and environmental criteria, not just financial returns, when selecting asset values or clients.

 

Losing financing and clients, however, should not be the only concern of ship owners who continue to use dirty and dangerous scrap yards. In 2018, and for the first time ever, a ship owner was held criminally liable for having illegally traded four end-of-life ships to Indian beaching yards. Several other cases of illegal traffic are under investigation. These cases focus not only on the liability of the ship owner, but also on the responsibility of insurers, brokers and maritime warranty surveyors. By unravelling the murky practices of shipbreaking, which involve the use of middle men, or cash buyers, and flags of convenience such as Comoros, Palau and St. Kitts & Nevis, these cases highlight the importance of conducting due diligence when choosing business partners.

"Clean and safe solutions are already available. Responsible ship owners, such as Dutch Boskalis, German Hapag Lloyd, and Scandinavian companies Wallenius-Wilhelmsen and Grieg, recycle their vessels off the beach. The EU maintains a list of clean and safe ship recycling facilities [2]. More ships need to be diverted towards these sites."
Nicola Mulinaris - Communication and Policy Officer - NGO Shipbreaking Platform

For the list of all ships dismantled worldwide in 2018, click here. *

For detailed figures and analysis on ships dismantled in 2018, click here.*

 

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

 

 

NOTES

 

[1] The Plata Glory was beached in December 2017 at Leela Ship Recycling yard. Leela holds a so-called Statement of Compliance with the Hong Kong Convention issued by ClassNK and claims to be offering “green recycling”.   

 

[2] The EU has published a list of ship recycling facilities around the world that comply with high standards for environmental protection and workers’ safety. The EU list of approved ship recycling facilities is the first of its kind and an important reference point for sustainable ship recycling. 

 

Financers pressure shipping industry to clean up its recycling practices

Financers pressure shipping industry to clean up its recycling practices

Banks, pension funds and other financial institutions are increasingly asked to take into account social, environmental and governance criteria when selecting asset values or clients. Investing with an eye to environmental or social issues, not just financial returns, is in demand, and the credit providers and investors of shipping are now actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach.  

 

Through what is known as “negative screening”, investors are using the annual lists that the Platform publishes on global dumpers to screen their portfolio. In 2018, Scandinavian pension funds the Norwegian Government Pension Fund Global and KLP divested from four shipping companies due to their beaching practices. The exclusions were made public and with written explanations. Both the breach of international human rights and the severe environmental damage caused by beaching were highlighted as reasons for the divestments.

 

"One particular problem with beaching is that shipbreaking takes place when the vessels are standing in mud and sand. As a result, the pollution leaches into the ground and is washed out with the tides. Even if arrangements were put in place at the beaching sites for the treatment of asbestos and PCBs, for example, the fundamental problem of containing and collecting the pollution would be impossible to resolve. There are better ways of dismantling ships that are readily available to the shipowner, but these are more expensive. "
Council on Ethics - Norwegian Government Pension Fund Global

 

Banks play a crucial role in supporting economic activity through their lending. They can also influence better business practices through engaging with their clients on social, environmental and governance matters. Starting off as a Dutch bank initiative with NIBC, ING and ABN AMRO as founding members, large Scandinavian and German shipping banks are now also part of a group of banks that promote responsible ship recycling and negotiate clauses to that aim in the loan agreements they sign with shipping companies. 

 

"The recycling, or scrapping, of a ship at the end of its lifecycle poses potential large social and environmental risks for the shipping industry, especially if so-called beaching practices are used. These practices mean that ships are driven directly upon beaches and dismantled under difficult working conditions and with detrimental environmental consequences as hazardous waste is discharged directly into the sea."
Nordea Bank

 

The financers of shipping have signaled that there are likely further exclusions to come. In light of the announced decommissioning in the oil and gas sector, it is further likely that investments in oil and gas assets will be also scrutinized. 

 

 

 

Council on Ethics - Recommendation to exclude Evergreen Marine Corp (Taiwan) Ltd from the Government Pension Fund Global (GPFG)

KLP - Shipbreaking practices in India, Bangladesh and Pakistan

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Press Release – Norwegian Central Bank excludes companies from government Pension Fund Global because of their beaching practices

Evergreen and Precious Shipping loose investments from the largest sovereign wealth fund in the world

 

The Norwegian Central Bank announced today its decision to exclude ship owners Evergreen Marine Corporation, Precious Shipping, Korea Line Corporation and Thorensen Thai Agencies from the Government Pension Fund Global (GPFG) [1]. The exclusion is based on the companies’ poor management of their end-of-life ships and the sale of these for dirty and dangerous shipbreaking on the beaches of Gadani, Pakistan and Chittagong, Bangladesh.

 

The Norwegian Council on Ethics directs the Norwegian Central Bank, which manages the Government Pension Fund Global, on which companies should be excluded from investments in the fund, based on human rights and humanitarian violations, corruption and environmental degradation records. The GPFG is the largest sovereign wealth fund in the world, owning 1% of all investments worldwide, and the recommendations of the Council on Ethics weigh on other investors as indications of good financing.

"This is the first time that shipping companies have been excluded from an investment fund based on their poor shipbreaking practices, and coming from the largest investment fund in the world, it sends out a strong signal to all financial institutions to follow suit."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The NGO Shipbreaking Platform has documented that in the last three years, 20 ships were sold by Evergreen, Korea Line, Precious Shipping and Thoresen Thai Agencies to beaching facilities in South Asia. The companies have been excluded from the GPFG because the beaching of their vessels cause severe environmental damage and serious human rights violations [2].

 

Whilst the exclusions so far are limited to companies that have sold their end-of-life vessels to be beached in Bangladesh and Pakistan, the reports clearly state that “to date, the Council on Ethics has not examined the way ships are broken up in India.” Many of the concerns raised by the Council also apply to the beaching practices in Alang, India. Indeed, as stated in their reports: “One particular problem with beaching is that shipbreaking takes place when the vessels are standing in mud and sand. As a result, the pollution leaches into the ground and is washed out with the tides. Even if arrangements were put in place at the beaching sites for the treatment of asbestos and PCBs, for example, the fundamental problem of containing and collecting the pollution would be impossible to resolve”. In light of this, the Platform encourages the Council on Ethics to also engage with companies that sell their ships for breaking on the beach of Alang, India.

 

According to the Council on Ethics, selling a vessel to a beaching yard “is a consequence of an active choice on the part of the company that owned the vessel to maximise its profit. In the Council’s opinion, that company must shoulder an independent responsibility for doing so. There are better ways of dismantling ships that are readily available to the shipowner, but these are more expensive”.

"Ship recycling is a heavy industry that requires industrial methods and infrastructure. We fully support the Council on Ethics conclusion that clean and safe ship recycling cannot be done on a beach."
Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Bearing in mind that Taiwan used to be the destination for breaking ships before the boom of the industry in South Asia, it is particularly damning for Evergreen – a Taiwanese company – not to remember the legacy that the industry left in its country following the explosion in the port of Kaohsiung in 1988.

 

© Studio Fasching – Chittagong, Bangladesh – 2017

 

NOTES

 

[1] An additional company, the South Korean Pan Ocean Co Ltd, has been placed under observation. In its assessment of the likelihood that the company will in future contribute to such norm violations, the Council on Ethics has attached importance to the company’s assurance that it is willing in future to take the method of breakup into account as far as possible when making decisions on the sale of vessels for scrapping.

 

[2] The following serious concerns related to beaching are outlined by the Council of Ethics:
- continuous, innumerable and serious violations of a number of ILO conventions whose purpose it is to establish minimum standards which safeguard the lives and health of workers. Wide-ranging and serious violations of these conventions must be deemed to infringe fundamental rights to life and health, the sum of which must be said to constitute a serious breach of fundamental human rights.
- serious pollution and the dispersal of environmental toxins, which in turn have a negative impact on human health and ecosystems in the area.

 

Press Release – Platform supports banks’ introduction of responsible ship recycling standards

And another worker dies in May at Chittagong yard with an appalling accident record

 

Today, during the first day of NOR-Shipping in Oslo, Dutch banks ABN AMRO, ING Bank and NIBC, together with the Scandinavian DNB, announced that they are all introducing Responsible Ship Recycling Standards (RSRS) for their ship financing. The banks took the opportunity of making this announcement during the biannual industry gathering in order to raise awareness with the intention of including more banks into the initiative. The Norwegian fund, KLP, who in 2016 commissioned a report by the International Law and Policy Institute on shipbreaking, had also already taken a stance to reject beaching practices.

 

A collective move to include ship recycling conditions on loans by leading banks and financial institutions with large shipping portfolios is a positive step to imposing responsible practices on ship owners. When there is pressure for change coming from shipping financers, who understand that they have a direct tangible impact on the shipping industry, ship owners, rather than finding crafty loopholes in the law, will feel the bite if they do not choose to recycle responsibly off the beach.

"We welcome the leading role taken by the banks to ensure a departure from the unnecessarily dirty and dangerous practice of beaching, and expect that investors and clients of shipping that are increasingly pushing for higher standards for ship recycling will join the initiative."
Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform