SUSTAINABILITY REPORT 2021 - Ocean Network Express
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SUSTAINABILITY
REPORT
2021
2 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 3
Table of About This
Contents Report
3 This is Ocean Network Express’s (ONE)
About This Report
fourth annual sustainability report. It provides
4 a summary of our progress in managing
Message from our CEO our material sustainability issues and
6 implementing our sustainability commitments.
Summary of Targets and Performance
8 The report has been prepared with reference
About ONE to the Global Reporting Initiative (GRI)
• Value Chain of our Business
• Scale of our Operations
Standards. This is the third year we are
• Our Core Values using the GRI reporting framework which is
• Our Business Credo
the most widely used reporting framework
• Corporate Governance
• Industry Memberships and Associations globally. For a full list of disclosures
• Awards and Certifications referenced in this report, please refer to
31
14 Social the GRI Content Index on page 42. As we
Our Approach to Sustainability • Empowering Our People continue to improve in our reporting, we
• Our ESG+O Framework • Talent Management
• Sustainability Governance • Taking Care of Our People will also look at referencing other reporting
• Supporting the United Nations Global • Health, Safety and Wellbeing frameworks that can provide our stakeholders
Compact and Sustainable Development Goals • Human Rights and Labour Standards
• Materiality • Supporting Local Communities with useful and relevant information about
• Our Material Sustainability Topics our sustainability performance.
• Stakeholder Engagement 38
Governance
22 • Ethical Business Conduct
• Anti-Bribery and Anti-Corruption
Environment
• Whistle-blowing
• Mitigating Climate Change • Approach to Compliance
• Working towards Decarbonization
• Building for the Future • Our Approach to Risk Management
• Responsible tax practices
• Protecting the Environment • Supply Chain Management
• Complying with IMO2020 SCOPE AND BOUNDARY
• Illicit Trade
• Preventing Marine Pollution This report contains information pertaining to the
• Piracy and Security
• Minimizing Waste period 1st January 2020 to 31st December 2020,
covering our liner network services. It does not
27 42 cover our inland services nor terminal operations.
GRI Content Index EXTERNAL ASSURANCE
Operational Excellence
We have not sought independent external
• Raising the Bar on Service Quality
• Delivering Better Customer Experience 48 assurance of our sustainability report, but will
explore the opportunity to do so in future reports.
• Maintaining Our Operational Edge United Nations Global Compact COP
CONTACT
• Container and Cargo Safety
• Vessel Safety 49 We welcome feedback from our stakeholders to
help us improve and progress in our approach to
• Navigational and Operational Safety ANNEX 1 Stakeholder Engagement sustainability and sustainability communication.
Please contact our Sustainability team at:
sustainability@one-line.com
4 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 5
Message from
endeavors. Through close from home. We continue to delivering global shipping
collaboration with internal prioritize the health and safety solutions. We will press on
and external stakeholders, we of our colleagues, implementing with our company-wide
our CEO
seek to contribute to sector- pandemic safety measures in digitalization, upgrade our
wide initiatives in innovating our office while allowing for fleet to be more sustainable
and advancing sustainability, flexible working arrangements. and efficient through technical
including the use of future modifications and newbuilding
fuels and efficient ship design, At the same time, we are program, and continue to
among others. mindful of the support we implement initiatives to work
must render to the ship crew towards our carbon reduction
In 2021, we took a further who work on our chartered targets. It will not be easy, but
step in our green strategy vessels – our maritime front it must be done. I am confident
I am confident that our collective
direction by joining six liners who play a critical role that our collective efforts,
industry partners to establish to keep the global supply anchored in our ONE Core
a fund for a maritime chain moving. ONE signed Values, will steer us towards a
efforts, anchored in our ONE Core decarbonization center to be
set up in Singapore. Under the
the Neptune Declaration for
Seafarer Wellbeing and Crew
more sustainable future.
Values, will steer us towards a Memorandum of Understanding
with the Maritime and Port
Change, joining stakeholders
from across the value chain to
We will strive to communicate
our progress openly and
more sustainable future.
Authority of Singapore (MPA), push for the resolution of the consistently. In this fourth
ONE will contribute S$10 million international crew change crisis. edition of our sustainability
to support the establishment report, we have included a
of the center, fund maritime- Looking back at 2020, I am new section to provide an
decarbonization-related grateful for the utmost support overview of our key targets
research and technology of our employees, customers, and commitments to manage
development projects, and shareholders and partners, that our material sustainability
Dear stakeholders, At ONE, we faced multiple digitalization roadmap, and part collaborate with institutes of has enabled us to overcome topics. I hope this report
operational challenges of our data-driven enterprise higher learning and research challenges and forge ahead. provides you with a snapshot
2020 was a momentous year for caused by the global supply strategy, with the ultimate institutes. The future may be uncertain, of ONE’s sustainability efforts
several reasons. It was the third chain disruptions, requiring objective to achieve operational but it presents opportunities and performance to date, and
year of operations for Ocean us to double down on efforts and service excellence, capture Our progress is made possible for us to build further resilience I look forward to continuing
Network Express (ONE) since we to cater to the unexpected new opportunities and deliver only with the dedication and in our business to withstand this journey together with you.
launched in April 2018, but one surge in container demand greater value to our customers. support of our people, who waves of disruption that we Sincerely,
that tested us beyond measure. As and maintain our service have persevered through the may yet foresee. It is more
the world continues to battle the reliability. Besides deploying Amidst these extraordinary challenging times to deliver important than ever for us to Jeremy Nixon
COVID-19 pandemic, businesses the service excellence that integrate sustainable ways of Chief Executive Officer
empty sweeper vessels to times, it is heartening that the
and communities sought to find new accelerate the repositioning transition to a clean energy has come to be associated working as we transition into
ways of working and living. of almost three million TEUs of future has only accelerated, with the ONE name. People the new normal. Our priorities in
empty containers and stepping with a groundswell of support development remains a key the year ahead will reflect our
up container procurement for climate action arising across focus for us as we strengthen commitment to be sustainable
to secure our supply, we the world. ONE is committed our talent base for future and resilient, and a trusted
also made use of AI-based to play a proactive role in success. We launched the partner for our customers in
technology to improve our driving decarbonization within THRIVE platform during 2020 to
demand forecast system and our industry. We have been ensure our people can have an
enhance predictability. accelerating our own efforts engaging and effective learning
towards achieving carbon- experience even when working
The drive to adopt technology neutral shipping with initiatives
and digitalize our business to improve fuel efficiency and
processes has played a big role reduce carbon emissions in our
in helping us adapt relatively operations. We successfully
seamlessly to working and completed a first trial using
operating during the pandemic. sustainable biofuel blend to
Our ROOT enterprise power the M/V MOL Experience
architecture project was across the Atlantic in 2020 and
kicked off in 2020, comprising will continue with further trials to
25 digitalization initiatives establish the viability of biofuels
across e-commerce, customer as a greener alternative. More
relationship management recently, we set up the Green
and business intelligence. Strategy Department to drive
It is the first phase of ONE’s our environmental sustainability
6 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 7
Summary of Container
Targets/Commitments 2020 Performance Current Actions
Targets and Performance
• Zero large-scale* or • No large-scale or fatal • Vessels chartered by ONE undergo
and Cargo fatal accidents accidents reported periodic VQS inspections – aim to
Safety • Less than 14 hours of • Average downtime
conduct at least 100 inspections per year
average downtime per per vessel due to • Continue to work closely with shipowners
vessel per year, while accidents or problems and ship crew of chartered vessels to
This section summarizes our key targets and commitments to manage our material sustainability topics, as well as our working towards goal onboard was 20.78 comply with ONE’s safety policies and
current performance and actions against these targets and commitments. of zero downtime hours processes, provide guidance on how to
manage and respond to incidents, and
More information about our material sustainability topics can be found in the section on Materiality on Page 19. *Large-scale accident is improve safety awareness
defined as an accident with • MARS enable proper records and root
possible loss of life, major cause analysis of accidents, to better
Environment impact on seaworthiness of
review and improve on safety practices
vessel, or major damage to
Targets/Commitments 2020 Performance Current Actions third party facilities Read more on Container and Cargo Safety
Climate • 25% reduction of CO2 • 10% reduction in CO2 • Measures to enhance vessel fuel Social
Change emissions (in gram/ emissions per TEU-km efficiency, such as installing high-efficiency
(including TEU-km) from 2018 from 2018 propellers and special propeller boss cap, Employee • Ensuring the health • Maintained zero • Occupational Health and Safety (OHS)
Energy) baseline by 2030; and
• 100% compliance with
an energy saving device Health and and safety of our fatalities since 2018 policies and procedures established
50% reduction of CO2 Safety employees, striving for across all ONE entities according to legal
IMO2020 • Measures to improve operational efficiency • No incident of high-
emissions (in gram/ zero fatalities requirements and regulations
to reduce energy consumption and consequence work-
TEU-km) from 2018
emissions related injury • Procedure in place for employees to report
baseline by 2050
• Trialling alternative low-carbon fuels such any accident, injury or work-related hazard
• Maintain 100%
as biofuels • OHS training provided and OHS
compliance with
• Continuous monitoring and enforcement information disseminated
IMO2020 sulphur limit
to ensure 100% compliance with IMO2020 • Monitoring of work-related injuries and
and further evaluation of other compliance fatalities
approach
Read more on Taking Care of Our People
Read more on Mitigating Climate Change
Talent • We are committed • Average training • Launch of THRIVE learning platform to
Marine • ONE will work with • No significant spills • Continue to ensure vessel safety Management to developing a hours of 9.7 per provide a more effective and engaging
Pollution and chartered vessels to reported for 3 years compliance via Vessel Quality Standard diverse and inclusive employee learning experience, even remotely
Conservation ensure zero significant (VQS) inspection and maintaining fleet workforce of engaged
• Turnover rate of 4.61% • Incorporated measures to promote gender
spills* standards employees, embracing
diversity during recruitment at the GHQ
• Working closely with vessel owners all employees as ONE,
level
*A significant spill is defined to ensure that best practices are irrespective of our
diverse backgrounds Read more on Empowering Our People
as more than 150 litres implemented onboard and sharing
overboard/case information regarding any incidents,
drawing up countermeasures where Governance
needed Ethical • We are committed • 86 virtual compliance • Code of Conduct, the Business Credo and
Read more on Preventing Marine Pollution Business to meeting the training workshops other compliance-related policies such as
Conduct highest ethical were conducted the ONE Basic Anti-Bribery Policy are put
Operational Excellence standards to ensure globally. in place which all employees must adhere
that our business to
Customer • 100% of customer • 90% of bookings done • Continue to encourage customers to use • 22,337 e-learning
activities contribute
Experience bookings done via via digital platform digital platform for bookings courses on key • Whistle-blowing channel and process
to the sustainable
digital platform by compliance topics are in place for employees to raise any
• Live Chat rolled out • Plan to remove option for manual booking development of
2025 were completed by concerns or compliance issues
to more than 30 under normal circumstances society, as set out in
employees globally
• 100% rollout of countries (>20%) our Business Credo • Training on key compliance topics such as
• Continue to roll out Live Chat to more Business Credo, anti-corruption and anti-
Customer Live Chat
countries fraud continued online despite COVID-19
platform by 2022
(except 3rd party Read more on Raising the Bar on Service restrictions
agents) Quality Read more on Ethical Business Conduct
8 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 9
About Scale of Operations
ONE
Total revenue 7,736 employees Serving more than
6th
in 211 local offices,
Ocean Network Express
largest fleet
US $14.4 5 regional HQs and
14,000 customers capacity in
in 106 countries
billion 1 Global HQ across the world
(ONE) is a container 47 countries
shipping company which
offers an extensive liner
network service portfolio Fleet of 220
covering more than 120
Total vessul
vessels, including capacity of 220 vessel port
46 super large 1,611,060 calls and 140
countries internationally. vessels of 14,000
and 20,000 TEUs
TEUs service loops
Company Profile Yusen Kaisha (NYK). NYK owns a All our vessels are chartered vessels,
ONE operates an extensive liner 38% holding in ONE while MOL and including those from our parent
network service portfolio covering K Line own 31% each. companies. We are responsible
more than 120 countries. With for the vessel operations, such as
a vessel capacity of 1,611,060 Value Chain of our Business scheduling and voyage instructions,
Twenty-foot Equivalent Units ONE handles end-to-end shipping arrangement of bunkers, and so
(TEUs), we are the 6th largest in services for businesses in a wide on. We work closely with the vessel
the world. Established in 2018 and variety of industries, including inland owners who are responsible for
RHQ ASIA – NORTH AMERICA
headquartered in Singapore, ONE services by rail, barge or truck in the maintenance of vessel quality
London
was formed through the integration addition to coastal services. We also and for the crew on board. Our
EUROPE – NORTH AMERICA
of the container shipping services of provide value-added services such Marine Safety and Quality (MSQ) INTRA EUROPE
three Japanese shipping companies as market intelligence, e-commerce Department works closely with EAST ASIA
Kawasaki Kisen Kaisha, Ltd. (K Line), services and procurement of the ship owners to ensure safe
RHQ ASIA – EUROPE
Mitsui O.S.K. Lines (MOL) and Nippon operation assets. operations. Richmond AFRICA RHQ
Hong Kong
WEST ASIA
ONE’s Value Chain
GHQ/RHQ
LATIN AMERICA Singapore
Research & OCEANIA
Development Procurement Production Sales Shipping Services RHQ
Sao Paulo
Utilise resources Documentation,
Obtaining Obtaining E-commerce
to determine vessel and
vessels, vessels, platform
market cargo tracking.
containers, containers, management,
demand and Vessels and E-commerce
fuels terminal, fuels terminal, publicity and
supply, vessel Cargo operation functions,
inland supply inland supply outreach, space
specifications freights
chain and IT chain and IT confirmation
and market settlements and
infrastructure infrastructure and booking
growth sales support
10 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 11
Our Core Values ONE recognizes our role ONE’s Business Credo
Our core values define what we stand for and guide our decisions and behaviours. They are in providing safe and
embedded in our Business Credo, Code of Conduct and other policies. reliable services while 1. GOOD FAITH BUSINESS ACTIVITIES
meeting our customers’ We respect national competition laws, engage in business practices that
expectations and are fair, transparent, freely competitive, and appropriate, and do not tolerate
maintaining their trust. bribery or corruption in any form.
At the helm of our brand,
2. ENVIRONMENTAL AND SAFETY INITIATIVES
ONE’s Business Credo
We undertake initiatives to enhance safety and to preserve the marine
enshrines eight principles environment and natural ecosystems, and seek to develop and refine safe,
LEAN & AGILE BEST PRACTICE QUALITY reflecting how we want to environment-friendly transportation technologies.
do business.
Breaking through conventions Continuing to improve ourselves Pursuing the best quality
3. ENHANCED SECURITY
to make ideas into reality based on the knowledge that always exceeds
We have established strong security measures to prevent the disruption and
quickly cultivated internally and externally customer expectations
abuse of international logistics networks, prohibiting any type of illegal activity
to deliver the best services
and the unauthorized access and leakage of information.
4. COMPLIANCE WITH LAWS AND ORDINANCES, RESPECT FOR
HUMAN RIGHTS
We recognize our role in society and act in a manner that is fair and just
by complying with national laws and ordinances and international norms.
Corporate activities should adhere to social mores, respect human rights,
honour local customs and practices, and address the concerns and interests
INNOVATION TEAMWORK CHALLENGE of stakeholders.
Delivering services that Respect individual diversity Leveraging on individual 5. EXCLUSION OF ANTISOCIAL ACTIVITIES
contribute to the customer’s to build a team that can work strengths and continuing We resolutely stand against all antisocial forces and organizations that
business through self innovation together to create new value to meet challenge without threaten the order and safety of civic life.
and creativity fear of failure
6. DISCLOSURE OF INFORMATION AND COMMUNICATION WITH SOCIETY
We disclose corporate information in a proactive and fair manner, rigorously
protect and manage the privacy and personal information of our customers,
employees and everyone involved in our business activities.
7. SOCIAL CONTRIBUTION ACTIVITIES
We proactively contribute to social activities as a good corporate citizen.
CUSTOMER
RELIABILITY 8. PRESERVATION OF FAVOURABLE WORK ENVIRONMENTS
SATISFACTION
We respect the diversity, individuality, and humanity of employees and
Delivering stable, Focus on customer needs well facilitate the activities of a diverse workforce. We make every effort to
sustainable and and deliver satisfaction that preserve favourable work environments.
professional services exceeds expectations
12 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 13
Corporate Governance Corporate Governance chart
ONE’s Holding Company
(Hold Co) in Japan oversees
the governance of our global HOLDING COMPANY
headquarters in Singapore (HoldCO)
(ONE GHQ). As a company SINGAPORE SHIPPING
registered in Japan, Hold Co ASSOCIATION (SSA):
is held to comply with the GLOBAL MARITIME FORUM: Singapore’s national trade WORLD SHIPPING COUNCIL (WSC)
• Audit-Supervisory
Companies Act, Corporate HoldCo Shareholder
Board Member An international non-profit association to serve and promote A trade group representing the
meeting Board of Directors
Governance code which • External Auditor organization committed the interests of its members and international shipping industry. As
includes the need for an audit to promoting the shipping to enhance the competitiveness a member, ONE collaborates with
by external auditors for internal Representative Internal Audit industry. ONE is a signatory of Singapore as an International other companies and governments
Directors
control systems. (HoldCo) to the Global Maritime Maritime Centre. As a member, to develop actionable solutions for
Forum’s Call for Action ONE actively participates in global transportation issues and
ONE GHQ oversees the on the decarbonization forums, feedback and dialogue promote environmental stewardship.
governance of regional offices, of shipping in line with sessions with key regulatory ONE’s CEO Jeremy Nixon has
branches, subsidiaries and OPERATING COMPANY the International Maritime agencies and international been nominated and acting as co-
joint-ventures, with delegation (OpCO) Organization’s (IMO) strategy. maritime organizations. chairman since November 2020.
to regional headquarters
(RHQs). RHQs are situated in
Hong Kong, Singapore, United Awards and Certifications
Kingdom (UK), the United States
OpCo Shareholder
of America (USA) and Brazil. meeting Board of Directors
RHQs oversee over 160 local External
representative offices that Auditor
Compliance Risk Management
handle cargo coming into the Committee Committee
CEO
local ports.
AEO (Authorized Economic
Operator): ISO14001 (ENVIRONMENT ISO9001:2015 (QUALITY
The Board has overall GLOBAL HEADQUARTER
responsibility for performing the
Corporate strategy ONE obtained AEO status in UK MANAGEMENT SYSTEM): MANAGEMENT SYSTEM):
(GHQ) meeting
An international An international standard
duties of strategic planning and Internal Audit (2019) and Netherlands (2018). AEO
providing oversight, including (GHQ) is defined by the World Customs environment set by the International
for the company’s sustainability Divisions of GHQ Organization SAFE Framework of management system Organization for
strategy. They are supported by Standards as a party involved in the standard set by the Standardization (ISO) that
three key functional Divisions, international movement of goods International Organization specifies requirements for a
working closely with the that has been approved by a for Standardization (ISO). quality management system.
Compliance Committee and Corporate & Innovation Product & Network Marketing & Commercial national Customs administration as We have received our We have received our
Business Strategy Committee. complying with WCO or equivalent ISO14001:2015 certificate ISO9001:2015 certificate in
supply chain security standards. in 2018 from ClassNK. 2021 from ClassNK.
Industry Memberships and Associations
CTPAT (Customs Trade Partnership ECOVADIS: LLOYD’S LIST ASIA PACIFIC
CLEAN CARGO: DIGITAL CONTAINER SHIPPING GLOBAL COMPACT NETWORK
Against Terrorism): ONE received a Silver medal AWARDS:
A business-to business ASSOCIATION (DCSA): SINGAPORE (GCNS):
ONE joined CTPAT, a voluntary from business sustainability This award recognizes
leadership initiative that A non-profit organization The local chapter of the United
public-private sector partnership ratings specialist EcoVadis and celebrates excellence,
involves major brands, cargo established to further Nations Global Compact
program, since 2018, to work with the for our commitment to innovation and leadership
carriers, and freight forwarders digitalization of container (UNGC). As a member, ONE
U.S. Customs and Border Protection driving sustainability in in the maritime sector. ONE
dedicated to reducing the shipping through technology endorses the ten UNGC
to protect the supply chain, identify our business through our emerged as winner of the
environmental impacts of global standards. ONE, A.P.Moller– Principles in the areas of Human
security gaps, and implement specific policies, actions, and results prestigious Lloyd’s List
goods transportation and Maersk, Hapag-Lloyd and MSC Rights; Labour; Environment; and
security measures and best practices. in 2020, putting us in the “Excellence in Container
promoting responsible shipping. are founding members. Anti-corruption.
CTPAT members are considered to be top 20% of companies rated Shipping” Asia Pacific
of low risk, and are therefore less likely by EcoVadis in our industry. award in 2019.
to be examined at a U.S. port of entry.
14 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 15
Approach to Our ESG+O Framework
Sustainability To be sustainable and resilient, and a trusted partner for our
customers in delivering global shipping solutions.
The international shipping OUR SUSTAINABILITY
PRIORITIES
industry is responsible for
the carriage of around 90%
of world trade.
While shipping is universally such impacts and advance Operational
4
recognized as one of the most sustainability efforts in Environment Social Governance Excellence
efficient means of commercial the industry. In 2019, we
transport, the industry still developed our sustainability areas of
has significant impacts on the strategy to focus our efforts priority
environment and society that around four areas of priority: We protect the We nurture and empower We uphold the highest We drive operational
need to be managed. This 1. Environment; environment and people in our business standards of ethical excellence through
is compounded by the rise 2. Social; 1 Environment ecosystems we all and the communities we business conduct and digitalization, to enhance
of international trade driving 3. Governance; and depend on by taking operate in, by managing corporate governance, customer experience and
continued growth in maritime 4. Operational Excellence action on climate change, our talent, protecting in compliance with ensure safe operations.
traffic, which is expected to preventing marine their health and safety, regulation and our own
translate to a nearly threefold These priorities are based 2 Social pollution and using respecting their human internal policies.
increase in Greenhouse Gas on the material sustainability resources responsibly. rights and supporting
(GHG) emissions by 2050, topics that drive long-term local communities.
according to estimations by value for our business
the International Maritime and our stakeholders. 3 Governance
Organization (IMO). Underpinning our priorities,
is our Business Credo, which
As the sixth largest container forms the core of ONE’s
carrier in the world by fleet commitment to embedding Operational
4 Excellence
size, ONE recognizes the responsible business
role we can play to mitigate practices.
Sustainability Governance
Our Board of Directors at GHQ (which includes our Managing Director and
CEO) drives the company’s direction in sustainability strategy and growth. They
are supported by the Business Planning Team who initiates and coordinates
sustainability initiatives across the company at GHQ, RHQ and local offices levels.
16 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 17
corruption. We are committed to
support UNGC by incorporating OUR IMPACT ON SDG 7:
the ten principles in the way we Ensure access to affordable, reliable,
do business. This report also
AFFORDABLE AND sustainable and modern energy for all
serves as our Communication Celebrating 10 Years of Nurturing
CLEAN ENERGY
on Progress Report (COP) to Young Sustainability Champions
the UNGC. Please refer to Underlying targets that we contribute to:
the UNGC reference table for Certificate of Appreciation Authority of Singapore (MPA) to establish
improvements in our fleet fuel efficiency. Our
7.2 By 2030, increase substantially the share a fund for a maritime decarbonization
our implementation of the ten This is proudly presented to of renewable energy in the global energy mix
biofuels trial had yielded encouraging results
center to be set up in Singapore, together
principles of UNGC on page 48. and we will continue to invest in seeking out
Ocean Network Express 7.3 Double the global rate of improvement in cleaner energy. See our Environment section
with five other industry leaders, to support
maritime decarbonization-related research
Pte Ltd energy efficiency by 2030 Pg 22-25 for more details.
We also support the local and technology development projects in
Supporting the United chapter of the United Nations In appreciation for their support ONE has been exploring alternative fuel ONE also signed a memorandum of collaboration with institutes of higher learning
towards the CDL-GCNS Young SDG options while making consistent cooperation (MoC) with the Maritime and Port and research Institutes.
Nations Global Compact Global Compact, the Global Leaders Award 2020
and Sustainable Compact Network Singapore
Development Goals (GCNS) in promoting sustainable
Adopted in 2015, the Sustainable development. For example, ONE
OUR IMPACT ON SDG 9:
Build resilient infrastructure,
Development Goals (SDGs) participated as a case company INNOVATION AND promote inclusive and sustainable
provide an internationally-agreed in the CDL-GCNS Young CSR INFRASTRUCTURE industrialization and foster innovation
roadmap to build a better and Leaders Award 2020, an annual
more sustainable future by 2030. case competition that offers young partnering with others. These
ONE believes that businesses people a platform to champion SDGs are of greatest relevance Underlying targets that we contribute to:
play an important role in sustainable development and and alignment to ONE’s 9.4. By 2030, upgrade infrastructure and ONE has embarked on its Digitalization Beyond our own operations, we actively
contributing to this global agenda SDG integration into business, and business and sustainability retrofit industries to make them sustainable, Roadmap in 2020, with the aim to build a strong participate in industry-wide initiatives through
for sustainable development. continues to do so in 2021. priorities, representing with increased resource-use efficiency and digital foundation to enhance existing business our membership in the World Shipping
opportunities where we can greater adoption of clean and environmentally models and services, develop new ones through Council, which our CEO is co-chairing, and
sound technologies and industrial processes, digital technologies, and ultimately create Global Maritime Forum, addressing industry
We joined the United Nations While our business activities touch best contribute to sustainable with all countries taking action in accordance new value for the market. See our Operational issues such as building a modern and efficient
Global Compact (UNGC) which on all 17 interrelated SDGs, directly development. In addition, we with their respective capabilities Excellence section Pg 27 for more details. maritime infrastructure, safety and compliance.
calls on all companies to take or indirectly, we have identified identified SDGs 4, 5, 8, 12, 16
action in support of the SDGs four priority SDGs (please see and 17 as also relevant to ONE’s
and align their practices with ten next page) which we believe overall sustainability agenda,
universally accepted principles we can have the biggest impact constituting secondary focus OUR IMPACT ON SDG 13: Take urgent action to combat climate
in the areas of human rights, on through our core business areas where ONE’s activities change and its impacts
labour, environment and anti- activities as well as through can positively contribute to.
CLIMATE ACTION
Underlying targets that we contribute to:
ONE has been continuously seeking on how we are working towards our goals.
13.1 Strengthen resilience and adaptive
improvements in our energy efficiency
capacity to climate related hazards and
and reducing the carbon footprint of our ONE has also been raising awareness of
natural disasters in all countries
operations. We have set emissions reduction climate change issues within our company
13.3 Improve education, awareness raising targets in support of the International Maritime and communities through our CSR activities
and human and institutional capacity on Organization (IMO) GHG Strategy and (held prior to the COVID-19 pandemic) and
climate change mitigation, adaptation, impact contribute to the industry climate goals. See our will continue to do so when the situation
reduction, and early warning Environment section Pg 22-25 for more details allows.
OUR IMPACT ON SDG 14: Conserve and sustainably use the
oceans, seas and marine resources for
LIFE BELOW WATER sustainable development
Underlying targets that we contribute to: 14.3 Minimize and address the impacts of organisms. See our Environment section Pg 26
ocean acidification, including through enhanced for more details.
14.1 By 2025, prevent and significantly reduce
scientific cooperation at all levels
marine pollution of all kinds, particularly from
Our vessels also take part in speed reduction
land-based activities, including marine debris
ONE takes comprehensive measures to prevent program on certain service routes to reduce
and nutrient pollution
accident spills and operational discharges from noise pollution and risk of striking marine
14.2 By 2020, sustainably manage and our shipping activities. Through our stringent animals in coastal areas. Before the COVID-19
protect marine and coastal ecosystems to Vessel Quality Standard (VSQ), we ensure pandemic, our employees regularly conduct
ONE team members discussing with student participants of the CDL-GCNS Young CSR Leaders avoid significant adverse impacts, including compliance with international conventions on beach clean-up activities as part of their CSR
Award 2020 case competition on how to align our sustainability efforts with SDGs. by strengthening their resilience, and take ballast water management and anti-fouling programs. We endeavour to do more on
action for their restoration, to achieve healthy systems to prevent adverse impact on marine marine protection and conservation going
and productive oceans ecosystems through the introduction of foreign forward.
18 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 19
Materiality Assessment Direct Impact: Indirect Impact:
In 2020, we worked with specialist sustainability consulting firm Corporate Citizenship to
conduct an assessment of our most material sustainability topics, building on from our previous Our Material Topics ONE can directly
influence and manage
Topics ONE can indirectly
influence and manage,
Sustainability Topics
assessments. We followed a four-stage process which included: working with partners
including vessel owners
and other stakeholders
along the value chain
Material Topics: Sustainability topics that are of high importance to the business and medium to high importance
to stakeholders. These form the focus of ONE’s strategy and reporting.
Analyzed and
1 Launched an online
survey for internal and 3 presented the
findings and results Customer
Ensuring high-levels of service
external stakeholders quality and reliability to maintain
to the senior
to prioritize the shortlist
management team at Experience customer satisfaction and loyalty.
of sustainability topics
ONE, before finalizing
identified in the
the list of material
previous stage.
sustainability topics. Preventing ocean pollution and
Marine protecting marine life through
Pollution and the responsible management of
Context Analysis Conservation ballast water and the prevention
and Topic Surveys Interviews and of spills/leakages.
Identification Validation
Ensuring the safe operation
Conducted desk-
Container and
of ships and the safe handling
based research and a Conducted a series Cargo Safety of containers.
benchmarking exercise of interviews with
to identify relevant customers and
industry trends and shareholders to
sustainabliliy issues, gather further insights Employee Protecting the health, safety and
2 4
developing a shortlist into the sustainability
context of ONE and Health, Safety wellbeing for our employees
of sustainablity topics
the industry. and Wellbeing and contractors.
to be prioritized.
Ensuring adequate systems and
processes are in place to uphold
Ethical
the highest standard of ethical
Business business conduct, including
Conduct measures to promote anti-
In the beginning of 2021, we ever more important as a means topics are taken into consideration
conducted a review of our material to improve efficiency and risk as we review our enterprise risk corruption and fair competition.
topics to ensure that we keep up- management. The risks and heatmap as part of Our Approach to
Putting measures in place
to-date with current and emerging opportunities represented by these Risk Management (see page 40).
to reduce energy use and
issues, especially in light of the
Climate greenhouse gas (GHG) emissions,
unprecedented events of 2020,
and to determine whether any new
Change including SO2 and NOx, across
our operations. Building resilience
material topics have emerged, or
against climate change risks.
if there is a shift in the importance
and impact of the current topics. Engaging in industry collaboration
and partnerships for innovation
Based on the review, our list Innovation and
in marine technology and
of material sustainability topics Digitalization streamlining our operations
remains unchanged. However, through digitalization.
certain topics like climate
change, employee health safety Attracting highly-skilled
and wellbeing have become individuals, providing training and
more salient during the year, Talent development opportunities and
necessitating greater attention Management promoting a diverse and inclusive
and resources to manage. We workplace, to build a high-
also witnessed the acceleration of performing shipping company.
Digitalization
digitalization, which has become20 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 21
Direct Impact: Indirect Impact: Stakeholder Our stakeholders have been of channels. We focus on
Topics ONE can directly Topics ONE can indirectly Engagement identified and prioritized better understanding their
influence and manage influence and manage, An important tenet of our based on the impact our needs and expectations, and
working with partners approach to sustainability is activities have on them, their seeking collaborative ways
including vessel owners and
engaging our stakeholders, knowledge of the sector and to work and achieve shared
other stakeholders along
the value chain and being accountable and ONE, as well their importance objectives.
responsive to their concerns. to the success of our business.
Relevant Topics: Sustainability topics that are of medium importance to the business and of sufficient interest to We value our stakeholders’ For details on our stakeholder
stakeholders to warrant disclosure as relevant. opinions and feedback to Stakeholder engagement engagement, including how
ensure we are continuously happens throughout the we engage them, please see
Mitigating the environmental, improving our practices year, both formally and the stakeholder engagement
social and governance risks and performance. informally, through a variety table in Annex 1 of this report.
Supply Chain
in our supply chain through
Management responsible procurement
practices.
Supporting communities in
need, through education
Supporting Local
programmes, logistical support
Communities during natural disasters, and
environmental awareness.
Respecting human rights and
Human Rights and
having zero tolerance for all Employees
forms of child labour, forced
Labour Practices labour or other forms of
exploitation.
Minimizing the amount of
waste generated and ensuring
Recycling and
the safe disposal of hazardous
Disposal of materials, including during the
Materials dismantling of ships at the end
of their lifecycle. Local
Customers
Community
Managing increasingly OUR KEY
Responsible complex tax laws and ensuring STAKEHOLDERS
Tax Practices transparency on our approach
to tax payments.
Combatting human trafficking
and the illegal trafficking of
Illicit Trade goods such as narcotics and
endangered wildlife.
Adopting proper measures
to prevent attacks and the
Piracy and hijacking of our commercial
Security vessels as well as protecting Suppliers Shareholders
our business systems through
cyber security.22 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 23
Environment efficiency propellers and attachment
of special propeller boss cap. These
measures are expected to reduce up
Making progress on our CO2 emissions intensity reduction
CO2 Emissions Intensity (g/TEU-km)
to 10% of emissions from fuel use per
vessel. We will continue to implement
50 48.35
these modifications progressively 46.79
The importance of ocean across our fleet.
45 43.67
shipping to the world is Our efficiency measures have
reduced our emissions intensity by 40
widely recognized – we 10% since 2018. We expect further
improvement in the years ahead as 35
36.26
move around 90% of we continue to achieve reductions
through technical retrofitting and 30
global trade. operational optimization towards our
reduction goals.
2018 2019 2020
Performance 2030 Target
Our Scope 2 emissions stem from
electricity consumption in our
offices. From the onset, we have
implemented measures to reduce office is also located in a “green” water and material resource usage.
At the same time, the sheer emissions from the international strategy. We have sought to electricity consumption such as use of building certified by the Singapore These measures, as well as lower
volume of maritime traffic shipping sector by at least 50% align with IMO’s ambitions in energy saving LED lights, automatic Building and Construction Authority usage in 2020 due to the COVID-19
means our activities have by 2050 compared to a 2008 developing our carbon dioxide lighting, reminders to staff to switch as having excellent environmental situation, have helped reduce our
significant environmental baseline, in order to meet the (CO2) reduction targets: off lights and devices, etc. Our GHQ performance in terms of energy, Scope 2 emissions by 11.6% from 2019.
impacts, including air and sea Paris Agreement goals to keep
pollution. As the world reaches global temperature rise well
By 2030: By 2050: Scope 1 and 2 Emissions (tonnes of CO2 equivalent, tCO2e)
a tipping point in our response below 2 degrees Celsius. This
to climate change that will
determine the trajectory of the
ambitious target requires the
collective action of all players
within the sector to accelerate
25%
reduction of
50%
reduction of
Scope 1 Emissions from fuel consumption
Oil Type 2018 2019 2020
planet’s health in this century,
the imperative for the shipping the shift from business-as-usual CO2 emissions CO2 emissions
sector to act decisively is clear. towards a net-zero future. per TEU-km per TEU-km Fuel Oil 9,191,451 12,163,491 10,638,466
Mitigating Climate Gas Oil 898,882 1,284,634 949,117
In response to this, the *Our reduction targets are with reference to a 2018 baseline
International Maritime Change as we only started operations in 2018.
Total 10,090,333 13,448,125 11,587,582
ONE is committed to do our **The reduction targets apply to our direct shipping fleet
Organization (IMO) announced
(Scope 1 emissions) and does not include emissions from
its initial IMO strategy in 2018 to part to tackle climate change other operations such as those in our office buildings and Scope 2 Emissions from electricity consumption
reduce greenhouse gas (GHG) and support the IMO GHG those from our supply chain such as terminal operations.
Electricity Type 2018 2019 2020
Purchased electricity 161.10 157.82 139.55
Working towards Note: As ONE only began operations in April 2018, the emissions data for 2018 only cover April to December, whereas the 2019 and 2020 data cover the
Decarbonization full year.
To work towards our targets, The operational control approach is used for the consolidation of data based on the GHG protocol.
Scope 1 emission factors are referenced from the Clean Cargo Working Group (CCWG) and only CO2 is included. Based on CCWG, “Given that all relevant
we have implemented energy consumption from ocean container transportation stems from fuel combustion on vessel engines, CO2 emissions is an appropriate approximation
initiatives aimed at improving of total GHG emissions.” Scope 2 emissions are based on the Electricity Grid Emissions Factors provided by the Singapore Energy Market Authority.
our operational and fleet fuel
efficiency, to reduce energy Fuel consumption from non-renewable sources (TJ)
consumption and CO2
emissions. Oil Type 2018 2019 2020
Improving operational efficiency: Enhancing fleet fuel efficiency:
• Ensuring optimum scheduling • Mainenance of hulls and propellers to reduce Fuel Oil 119,229 157,715 136,428
In 2020, we made some new
and shorter port stay times to fricton casued by fouling
progress to improve our fleet increase trip efficiency • Installed special fins for propellers to improve
fuel efficiency. These include Gas Oil 12,056 17,230 12,730
• Slow steaming where possible propulsion efficiency and reduce fuel consumption
modification of bulbous bow • Use of shore electric power • Other technical modifications and maintence to
Total 131,285 174,945 149,158
to reduce wave resistance, where facilities are available optimise fleet performance
replacement with high • Monitoring of marine weather for • Use of in-house fleet performance monitoring
Note: Fuel Oil consists of Heavy Fuel Oil and Very-Low Sulphur Fuel Oil. ONE did not consume fuel from renewable sources.
better navigational performance system to understand the impact of our efficiency
Conversion from fuel quantity to TJ is based on conversion factors provided in CDP Technical Note: Conversion of fuel data to MWh, CDP Climate
measures and seek continuous improvement Change Questionnaire 202024 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 25
As transport volumes are expected to continue growing, we recognize that Case Study
improving efficiency is not enough. Our next step is to look at how we can
effectively decouple emissions from growth by exploring alternative clean fuel Seeking Cleaner Fuels
options and work towards developing absolute CO2 emissions reduction targets.
We are currently mapping available pathways towards carbon neutral shipping. Green Strategy Biofuel is a fuel that is derived from renewable sources and gained attention around the world as an environmentally-
Department set friendly alternative to fossil fuels.
up in 2021 to drive
As part of ONE’s decarbonization plans, we are exploring the use of biofuels to power our fleet. In 2020, we
ONE’s environmental
Our Progress
collaborated with shipowner Mitsui O.S.K. Lines and leading sustainable biofuel pioneer GoodFuels to conduct a trial
sustainability endeavors
use of biofuel to power the M/V MOL Experience.
through close collaboration
Since 2018 with stakeholders and
ensuring ONE is at the
forefront of green thinking During this first trial, the decarbonization journey. GoodFuels’ sustainable biofuels are
Exploring alternative in the shipping and virtually free of sulphur oxides and deliver
sustainable biofuel was blended
fuels such as biofuels logistics industry 80-90% “well-to-exhaust” CO2 reduction
in a 10/90 mix with conventional We have commenced a second trial
that can reduce fossil fuels enabling the M/V MOL using a higher percentage mix of versus fossil fuel equivalents. They are
emissions. First Experience to make its Atlantic the biofuel which will yield greater functionally equivalent to petroleum
biofuels trial completed derived marine fuels, and no modification
Further modifications crossing between Europe and the reduction in carbon emissions. We
in 2020 and 2nd trial is required to the engine or the fuel
to fleet to enhance USA successfully. It is estimated believe biofuels are a viable and infrastructure.
fuel performance, started in 2021. Further that the use of this biofuel mix promising clean fuel alternative, and
such as modification study of alternative contributed to approximately will continue to look into issues of GoodFuels only works with renewable
of bulbous bows to fuels in progress 10% tank-to-wheel reduction in availability, technical specifications, feedstocks that cannot be used for any
reduce resistance and carbon emissions. This marks a regulations and cost, to bring it to higher quality application or recycling and
attachment of energy- positive step forward for ONE in its fruition. are therefore regarded as truly sustainable.
saving propeller boss cap
The successful completion of the trial has confirmed that for ONE,
biofuel is one of the solutions to reduce Greenhouse Gases. We at
ONE, shall continue to invest in a cleaner, greener future.
–Takashi Mishima, General Manager of Fleet Management, ONE
Understanding our
baseline emissions
and fuel consumption Building for the Future
data, to seek out In December 2020, ONE
carbon reduction signed a Letter of Intent for the
opportunities 15-year long-term charter of
YOUR
Improving fleet fuel six new Ultra Large Container
TITLE
efficiency by HERE
installing Ships (ULCS) with capacity
special propeller fins greater than 24,000 TEUs
for better propulsion, each, the world’s largest class
upgrading to advanced ever. This new class of ships
control autopilot systems will join our core fleet, helping
to minimize vessel to bring economies of scale
resistance, optimizing and significantly lower carbon
vessel routing emissions through a state-of-
the-art hull design that aims
to maximize cargo intake and
Implementing minimize fuel consumption.
operational effieiency This is part of our ongoing
By 2030: By 2050: strategy to introduce large,
25% 50%
measures such as
optimizing vessel modern, and fuel-efficient
speed and schedules, vessels to further strengthen
enhancing navigational
reduction of reduction of our fleet competitiveness while
performance
CO2 emissions CO2 emissions reducing our environmental
per TEU-km per TEU-km impact. We expect to take
ONE Columba
delivery in 2023/2024.26 OCEAN NETWORK EXPRESS (ONE) SUSTAINABILITY REPORT 2021 27
Protecting the Environment
The shipping industry has an impact
on the environment through air
Preventing Marine Pollution
Accidental spills and operational
discharges are key causes of marine
spills (more than 150 litres
overboard) reported in 2020.
Operational
Excellence
and sea pollution, which can have pollution from shipping activities, Documented ship strikes of marine
profound implications on human with potential widespread adverse animals such as whales have been
health and marine biodiversity. impact on marine life. ONE works recognized as a growing concern
closely with the owners of the worldwide. Our vessels deployed
Embracing environmental vessels we charter to ensure that on routes that cross national
sustainability is a priority for ONE and
our actions are focused on finding
best practices are implemented
onboard, and all relevant regulations
marine sanctuaries on the US
West Coast participate in speed
Operational excellence is a
ways to minimize our environmental
footprint and improving sustainable
are complied with. reduction programs initiated by
local authorities to reduce the risk
mindset and way of working
practices in our operations. As stated
in our Environmental Responsibility
Chartered vessels will undergo
periodic Vessel Quality Standard
of vessel strike to whales.
that we embrace at ONE.
Policy, ONE is committed to the (VQS) inspections to ensure their As part of our CSR activities, our
protection of the environment Safety Management System (SMS) employees also organize and take
including prevention of pollution and meets our requirements. They part in beach cleaning activities
integrating leading environmental are also checked for compliance to collect litter before they end up
management practices into the with international conventions in the water and drift out to sea,
company’s business strategy and like MARPOL requirements on posing a hazard to marine animals When we first started operations in services, with a focus on delivering interactions across global and regional
processes. In October 2018, we ballast water management and and the marine ecosystem. In 2020, 2018 as one of the newest players in better customer experience and offices for key accounts, in order to
achieved the ISO14001 certification IMO convention on anti-fouling we were unfortunately not able to the industry, we knew we had to bring operational efficiency. improve customer communication and
for our Environmental Management systems, as well as local regulations conduct our usual CSR activities our best to the table to successfully experience. We also started deploying
System. on waste and effluents treatment/ due to the COVID-19 situation. compete in the market. This strategy Delivering Better Customer Robotic Process Automation (RPA) for
discharge. The same checks are has enabled us to strive for sustainable Experience our booking documentation process
Complying with IMO2020 conducted before chartering any Minimizing Waste improvements within our operations We commenced the first stage of our to improve quality, accuracy and
With effect from January 2020, every vessel. Quarterly feedback sessions We seek to minimize the amount and high levels of service quality. Digitalization Roadmap in December turnaround time. We aim to have 100%
vessel in the world must comply are carried out between ONE and of waste generated in our 2020, digitalizing our channels, of customer bookings done via our
with a sulphur content limit of less the third-party companies involved operations and ensure the safe and Raising the Bar on Service operations and assets to provide an digital platform, to be transitioned over
than 0.5% in fuel oil, known as in carrying out VQS inspection responsible disposal of waste. Quality end-to-end customer experience the next few years by 2025.
IMO2020. This landmark regulation of the ships to identify areas of Innovation and digitalization are critical within a single digital environment
from IMO is a bid to cut sulphur improvement. ONE arranges for shore disposal enablers of operational excellence from quotation to e-invoice. With increased digitalization comes
dioxide emissions resulting from the of garbage and generated sludge at ONE. In 2019, we established the need to build strong defence
combustion of marine fuel oil. Any incident involving spillage is onboard, and requires chartered our Digital Strategy Committee and We continue to enhance our against cybersecurity risks and protect
investigated, analyzed and recorded vessels to maintain proper records Digitalization Roadmap, to build our Customer Relationship Management both customer and corporate data.
Compliance with IMO2020 has in ONE’s Marine Accident Report for waste and effluents treatment/ digital capabilities and enhance (CRM) system to provide full visibility We manage our cybersecurity risks
considerable cost implications. System (MARS). Countermeasures discharge which are checked existing business models and of customer information and with a well-designed IT infrastructure
However, it is necessary to mitigate are drawn up where necessary, to during VQS inspections. Any non-
the global health risks from sulphur prevent recurrence. Employees compliance with regulations is
dioxide emissions. ONE is fully can report any observed negligent addressed with ship owners and to
supportive and compliant with this actions that could result in damage be rectified. Digitalization Roadmap
regulation, and has prepared for to the environment via ONE’s Hotline
IMO2020 since it was announced. system. There were no significant At our offices, recycling bins
are provided and e-waste such
Established a Worked with vessel
as batteries and laptops are
cross-functional task force owners to ensure the disposed through licensed Data analytics
to plan responses vessels on charter are
• Engaged with stakeholders compliant and to plan
recycling companies. Digital commerce model build
e.g. customers, authorities for charter of vessels platforms micro service
• Evaluated technical already installed with integration architecture start
requirements & most cost- scrubber systems
ONE does not currently own any 2021 2023
efficient options vessels and will comply with the
IMO Ship Recycling Convention
when we do have ownership in
the future. For the scrapping of
ship hulls, we carry out preliminary
2020 2022
surveys on dismantling yards
Implemented use of low- Continuous monitoring
sulphur compliant hybrid and enforcement
to ensure that proper practices
oil as most viable short-term to ensure 100% are in place to reduce impact on
action as ONE’s container compliance and further
vessels are equipped to evaluation of other the environment and workers New service Continuous
model & data apps build
adopt this without requiring compliance approach before they can be engaged by platform build expand big data
special modification like use of LNG
ship owners.You can also read
