- Our ESG Strategy
- CEO's Sustainability Review
- Environmental Responsibility
- Responsibility to Our People
- Responsible Value Creation
- Responsible Business Fundamentals
- Sustainability policies, governance etc.
The primary environmental impacts of shipping are emissions and discharges. At sea and in port, these outputs are substantially all regulated and compliance is enforced across international, regional and local jurisdictions.
We recognise our responsibility to reduce our operations' impact on air, sea and land, and our Pacific Basin Management System is designed to measure and continually improve every aspect of fleet operations, including our environmental outputs.
As a leading dry bulk ship owner and operator, Pacific Basin seeks to further improve our fleet scale, optimise our performance and offer flexible and reliable service while striving to decouple this from environmental damage. We take responsibility for decarbonising our fleet, managing our waste, marine discharges and resources consumption, ensuring our ships are primed for proper recycling and minimising our biodiversity impacts as we continue to grow our business.
Decarbonising our fleet
We target to become net zero by 2050 to reduce our impact on climate change by adopting technical and operational measures, preparing for market-based measures and supporting the development and deployment of green fuels and zero-emission vessels.
Minimising our environmental impact
We manage and operate our fleet and offices with a commitment to reducing our resource consumption, waste footprint and biodiversity impacts. We ensure that our older ships that we sell are primed for proper recycling at end of life.
Enhancing and optimising green & safe ship operations
We strive to adopt industry best practices and promote a culture of high standards to ensure environmentally-responsible and safe ship operations through continued investment in training, systems, procedures and technology.
IMO GHG Strategy
In 2018, IMO set a greenhouse gas reduction strategy with industry goals to:
- reduce carbon intensity by 40% by 2030 and by 70% by 2050; and
- to reduce total GHG emissions by half by 2050 (both relative to 2008)
These IMO goals are no longer adequately ambitious, and it is our hope that the IMO will tighten its targets to align with the Net Zero by 2050 goal promoted at the UN Climate Change Conference, which is designed to limit global warming to 1.5°C over pre-industrial levels.
Since 2021, our own carbon reduction target is to achieve net zero emissions by 2050.
In June 2021, IMO adopted global regulations to drive technical and operational measures to ensure annual improvements in the carbon efficiency of existing ships designed to achieve IMO’s current greenhouse gas reduction targets. These EEXI, SEEMP and CII rules took effect on 1 January 2023.
Tracking a Course to Net Zero by 2050
Pursuing a 2050 net zero emissions target is key to improving the Group’s decarbonisation performance and the overall sustainability of our business. While our absolute emissions are likely to increase further as our core fleet grows, our average emissions per ship per unit of transport work done (our carbon intensity) continues to improve long term.
REDUCING OUR CO2 INTENSITY
Short and Long-term Goals
Our long-term target is to achieve net zero emissions by 2050.
Based on this 2050 target, we expect to have reduced our EEOI carbon intensity to 6.7 by 2030, representing a reduction of over 50% compared to our 2008 baseline. This exceeds IMO’s target of a 40% reduction in CO2 per transport work over the same period.
- Fuel saving
- Eliminating our climate impact
- IMO regulations
- EU rules
Our fleet registered an AER carbon intensity of 6.07, representing a 3.3% decrease, reflecting reduced fuel consumption and a slight increase in the average size of our ships.
All of our 28 owned ships that are subject to Energy Efficiency Design Index (EEDI) rules have attained an average EEDI of 4.74 grams of CO2 per tonne-nautical mile, which exceeds the average required EEDI of 7.87 grams of CO2 per tonne-mile. All of our owned ships are prepared for compliance with new EEXI rules in 2023/2024.
Tackling Environmental Responsibilities
We seek to minimise our impact on the environment from atmospheric emissions, resource consumption and marine discharges.
Our Decarbonisation Strategy
We continue to adopt fuel-efficiency enhancements and practices to ensure that our conventionally-fuelled existing ships are well positioned to comply with applicable global and regional rules and to continue to trade for the foreseeable future. In parallel, we are collaborating and making preparations to achieve the longer-term goal of complete decarbonisation by transitioning to entirely new zero-emission-capable ships and fuels under development
Carbon Emissions & Fuel Efficiency
- Maintaining our high laden-to-ballast ratio
- Our ships are laden with cargo for over 90% of the time because our fleet uniformity and scale and our ship operating and cargo expertise enable us to optimally schedule and combine our ships and cargo for high laden utilisation. That is a significant advantage compared to similar ships in our segment which spend more time in ballast.
- Modernising our fleet by gradually trading up to younger, larger, more energy-efficient ships
- We renew our fleet through our largely counter-cyclical acquisition of modern Japanese-built or designed second-hand vessels with fuel-efficient hull designs and machinery and the best designs for our trades.
- We will not contract newbuildings until zero-emission-ready ships are available and commercially viable in our segments and the appropriate refuelling infrastructure is being built out globally
- Adoption of latest energy-efficient operating measures
- Fuel-efficient voyage planning using the latest Continuous Weather Routing services
- Reducing rudder movements and improving course-keeping using advanced self-tuning autopilot systems to automatically adapt to load and weather characteristics
- Avoiding unnecessarily high engine torque in bad weather conditions using real-time propeller-curve displays
- Improved trim and draft optimisation to reduce hull resistance
- Optimising hull cleaning frequency (for reduced drag) using detailed analysis of vessels’ speed and fuel consumption performance over time
- Computer-aided optimisation of cylinder lubrication and machinery overhaul intervals leading to reduced fuel consumption
- Slow steaming at optimal operating speeds
- Adoption of latest energy-efficiency technologies on our ships
- Fitting propeller boss cap fins, non hub-vortex propellers, rudder bulbs and Mewis ducts to improve propulsion hydrodynamics
- Reshaping propellers for reduced fuel consumption and/or improved torque characteristics
- Optimising combustion pressure by engine tuning
- Applying anti-fouling paints over a larger hull area to reduce drag even when fully laden
- Retrofitting LED lights throughout our ships’ accommodation blocks and engine rooms
- Supporting the development of potential zero-carbon fuels and vessels
- We engage regularly with the classification societies, engine manufacturers, shipbuilders and other stakeholders who are more directly involved in new fuels and new propulsion R&D, and we also engage with other ship owners and operators who are similarly interested in tracking and contributing to this industry discussion with input from the user’s practical perspective.
- We are members of the Getting to Zero Coalition of over 120 companies committed to exploring how to achieve the goal of developing and rolling out the first deep-sea zero-emission or carbon-neutral ships by 2030. Ammonia and methanol synthesised from green hydrogen are currently among the front-runners in a short list of potential fuels for shipping.
- Voluntarily offsetting our emissions with carbon credits
- Despite all our initiatives to continually improve our carbon intensity, our operations will still generate carbon emissions for years to come. We wish to offset at least some of these unavoidable emissions and, in 2021, we launched our PB Carbon Neutral Voyage Programme for our customers. We have voluntarily and fully offset the carbon emissions from our global onshore operations in 2021. For more information about our PB Carbon Neutral Voyage Programme, please refer to our Sustainability Report.
For information on our management approach and initiatives addressing other air emissions, marine discharges and waste management, please refer to our Sustainability Report.
Responsible business fundamentalsGood corporate governance enhances stakeholder confidence in Pacific Basin as a partner and a place to invest.
Our ESG StrategyESG is about recognising our responsibilities to the safety and wellbeing of our staff, the environment and the communities in which we operate.
2022 Sustainability ReportView our Sustainability Report (PDF)