- Sustainability overview
- Sustainability Review
- Our ESG approach
- Corporate governance
- Sustainability policies, governance etc.
The Group has published the following documents to guide our actions and improve our performance in areas of Corporate Sustainability
- HSEQ Policy
- Commitment to a Healthy & Safe Workforce (OHSAS 18001)
- Environmental Policy Guide
- Drug & Alcohol Policy
- Code of Conduct (staff; counterparty)
- Whistleblowing Policy
- Workplace Practices Policy Summary
- Board Diversity Policy
- Anti-Bribery Policy
- Social Media Policy
- Trading Restriction Policy
- Remote Working Policy
Sustainability Reporting Framework and Scope
The sustainability content on our website, in combination with our sustainability report, serves as a record of our main sustainability initiatives and performance highlights, focusing on environmental, social and governance areas that are material to our business and stakeholders. Our sustainability reporting follows the latest Environmental, Social and Governance Reporting Guide (“ESG Guide”) of The Stock Exchange of Hong Kong (the “Stock Exchange” or “SEHK”) and draws on the guidelines and principles of the United Nations Global Compact and the International Integrated Reporting Council’s International
We have measured and tracked key aspects of our sustainability performance for several years and we meet the Stock Exchange’s ESG Guide’s disclosure requirements. The scope of our report covers the significant Environmental, Social and Governance (ESG) initiatives of our business that reduce our environmental impact, reinforce our class-leading safety culture and mitigate safety and environmental risks, enhance job fulfilment and promote responsible engagement within the communities where we operate.
Our sustainability reporting boundary focuses on the majority portion of our core fleet that comprises owned vessels that we control both commercially and technically. It also covers aspects of our chartered-in vessels.
It is our owned vessels over which we have the authority to mandate and control Health, Safety, Environment and Quality (HSEQ) policies and actions. By contrast, we do not control HSEQ, crewing and other technical management aspects for chartered-in vessels, although we do hold our tonnage providers to ensure that they and their ships, certificates and practices comply with all relevant labour, health & safety, environmental, sanction and other laws and regulations and are consistent with our Counterparty Code of Conduct. We aim to disclose more on our chartered fleet’s carbon intensity performance in 2022 onwards.
We also report on our company-wide staff engagement and community initiatives and performance.
Sustainability is a Board Responsibility
The Board is responsible for, among other things, the development of the Group’s long-term corporate strategies and broad policies. In setting its standards, it considers the needs and requirements of the business, its stakeholders, the Corporate Governance Code and ESG Reporting Guide encompassed in the Stock Exchange’s Rules governing the listing of securities.
As such, the Board has overall responsibility for, and is engaged in, the Group’s sustainability strategy and reporting, including identifying, evaluating and managing ESG-related risks, and ensuring appropriate and effective ESG risk management and internal control systems are in place. Management provides confirmation to the Board of the effectiveness of these systems. The Board also reviews progress made against ESG-related goals and targets.
The Board delegates to the Audit Committee more specific responsibility for reviewing the effectiveness of the Group’s sustainability initiatives and the work of the Sustainability Management Committee (“SMC”).
Functions of SMC
The Group's SMC comprises the CEO, CFO and six senior executives from different functions. It reports to the Audit Committee at least twice a year, and is responsible for reviewing, assessing and enhancing the Group's sustainability policies, strategies and performance, and ensuring the Group is in full compliance with ESG requirements. This approach affirms and enables the Group's commitment to sustainability, and ensures that members with different backgrounds and expertise are represented to deliver meaningful outcomes.
We have recently formed a dedicated sustainability team to further enhance our strategic teams on sustainable business practices and investments in sustainable assets. Supported by the sustainability team, day-to-day execution of sustainability initiatives and sustainable business practice lies with managers across the business, most notably the Fleet Director (supported by his senior managers covering technical operations, fleet personnel and risk, safety & security), the Commercial Operations Director, the CEO and the Human Resources and Administration Director.
Matters of Key Strategic Focus
We assess all the issues that are material to the long-term success of Pacific Basin and the sustainable growth of our business and operations. This exercise – an analysis of opportunities and risks and how to balance them – also assists us in developing and achieving our strategic objectives. Sustainability is a key element of each of these material issues, and this is the driving force behind our long-term progress and success.
Through this process, we have identified the material issues below which are key components of our business model and key drivers of our Group’s performance and long-term viability.
What is material is defined as an issue that would impact our senior management, Board and Board Committees’ decisions, applying several criteria such as:
- the potential economic impact of an issue on the business and its value over the short, medium and long term;
- our main stakeholders’ concern with an issue and its likely effect on them;
- the extent to which an issue impacts society and the environment; and
- the extent to which an issue is likely to grow in significance and impact in the future.
Stakeholder Engagement & Materiality
Pacific Basin listens to and often engages in active two-way dialogue with our stakeholders – primarily customers, suppliers, employees, shareholders, financiers, industry associations and regulators. In addition to our day-to-day contact with customers, we conduct annual and in-depth customer and investor surveys that provide insight about our operations and ways we can improve. We also conduct an annual ESG materiality assessment, reaching out to different stakeholder groups on a rotational basis. We also engage actively with associations that work to influence and respond to regulations that affect our industry. These engagements enable us to map issues that are of greatest importance to our business and stakeholders, and determine the key issues for discussion in our sustainability reporting.
The following materiality matrix reflects the findings of our latest ESG materiality assessment in 2021:
Pacific Basin operations are subject to the Group's internal rules and regulations as well as the prevailing legislations, rules and codes imposed or recommended by the relevant regulatory bodies from time to time, such as The Stock Exchange of the Hong Kong Limited, the Companies Registry, etc.
The Group has drawn up the following governance documents to elaborate on our values and our commitments to pursuing the highest standards of Corporate Governance:
Corporate GovernanceGood corporate governance enhances stakeholder confidence in Pacific Basin as a partner and a place to invest.
Our ESG ApproachESG is about recognising our responsibilities to the safety and wellbeing of our staff, the environment and the communities in which we operate.
2021 Sustainability ReportView our Sustainability Report (PDF)