Odfjell actively initiates and promotes a proactive Quality, Health, Safety and Environment culture, and engages in global and regional Corporate Social Responsibility programs to improve sustainability. Taking care of our employees and our surroundings is at the core.
Odfjell’s overall targets embrace ambitious measures for the Company’s efforts and impact on Environment, Governance and Compliance. This is diligent work, to be continuously improved; we can always do better. To guide our work, Odfjell has committed to a set of targets based on a campaign initiated by the Conferederation of Norwegian Enterprise (NHO) on UN's 17 Sustainability Development Goals (SDGs). For 2016, the status on Safety, Health and Quality, Environment, Social Responsibility, Governance and Compliance was as follows:
SAFETY, HEALTH AND QUALITY
Safety is fundamental in everything we do. Never to be compromised, safety is implemented as our number one guiding principle.
We educate, review and analyse to secure that our employees have the competence, equipment and resources to perform their tasks in a safe and secure manner. The continuous work to improve the sustainable safety performance shows positive results, with a decrease in the severity of personnel injuries and total recordable case frequency (TRCF) from 2015 to 2016 for Odfjell managed ships. For 2016, the lost time injury frequency (LTIF) for the Odfjell managed terminals was 0.26 compared to 0.30 for 2015. For ships, the LTIF was 0.88, compared to 0.72 for 2015. We will not be satisfied until we reach a 0% injury target.
To further build awareness throughout the organisation, several educational courses and events are organised for on board and on shore personnel throughout the year.
For seafarers and their families, the 'Healthy Living’s Body Mass Index Watch' project is providing education in health and well-being. The Odfjell Safety Day is a yearly, global event, fully dedicated to safety. In line with the International Labor Organisation’s (ILO) 'World Day for Safety and Health at Work', the theme of this year’s safety day in 2016 was 'Workplace Stress: A Collective Challenge'. Safety is more than a priority for Odfjell Terminals as well, it is a value and part of our license to operate. The ongoing focus on standardisation at the terminals is resulting in an improvement in consistent management processes and implementation of common systems.
The terminals continue to implement key global standards in operational excellence, engineering, protection and maintenance, to keep reinforcing operational discipline throughout the organisation.
Risks are further mitigated by using a key control framework, effectively communicating quality and safety expectations to the entire organisation. In addition, our contractor safety programme ensures that companies working on our facilities are qualified and understand how work should be performed.
KEY INITIATIVES
• Improved propulsion efficiency
• Fresh water production by using reversed osmosis technology on vessels
• Weather routing/route optimisation for vessels
• Intermediate hull cleaning and propeller polishing
• Ship energy efficiency management plan (SEEMP)
• Fleet performance system
• Environmental management system plan for vessels
• Waste minimisation at terminals
• Emission reduction programs at terminals
• Improved ship recycling procedures
• ISO certifications
• Biodiversity support in the Philippines
ENVIRONMENTAL IMPACT
As one of the world’s leading service providers within the chemical tanker and terminal industry, Odfjell aims to be a front runner in minimising our environmental footprints. Energy efficiency programmes and a range of initiatives are in process, and the arrows are pointing in the right direction.
Improved propulsion efficiency
Odfjell’s energy efficiency- and retrofitting programme continued at good pace in 2016. Still, we have a long way to go, and the total consumption of marine fuels remains unchanged compared to 2015. The unchanged consumption is due to the fleet being operated at a higher speed compared to previous years. All fuels purchased by Odfjell are externally tested. Test results of the fuel purchased in 2016 (all fuel grades) indicate the average weighted sulphur content at 2.0% compared to 1.9% in 2015. The global limit in 2016 was 3.5%. Our Carbon Disclosure Project climate change score is set at Performance band C.
As part of our propulsion line upgrade for the Kvaerner and Poland class vessels, we are introducing new energy efficient propeller blades, rudder-bulb, and perform technical upgrades of the main engine, turbo chargers and shaft generator gear. The savings have been confirmed by full scale sea trials. Four vessels were retrofitted in 2015, nine in 2016, and the remaining six are scheduled for upgrade in 2017.
The retrofitted vessels are now among the most energy efficient chemical tankers in the world – achieving the highest score on the RightShip energy rating, A+.
Fresh water production
Our fresh water production project continues: Reversed osmosis plants were installed on 14 vessels in 2016, bringing the number up to a total of 20 vessels in our fleet. The plants reduce consumption on auxiliary boilers by enabling more energy efficient production of fresh water, and we expect this initiative to reduce tank cleaning time as well. In 2017 we plan to retrofit plants on an additional three vessels.
Weather routing
A weather routing concept - utilising both internal and external resources - has been in use since 2009. The concept is applicable for both our owned fleet and the time-chartered fleet.
Intermediate hull cleaning and propeller polishing
Hull cleaning and propeller polishing between dry-dockings further improve our vessels’ energy efficiency. This practice has been continuously improved since 2013, resulting in significant reductions of fuel consumption – and thus of CO2 and SOx.
In addition to normal dry-dockings, 70 underwater service operations (propeller polishing and/or hull cleaning) were conducted in 2016, with the aim to further improve the energy efficiency of the fleet.
Substantial savings in terms of both CO2 and SOx emissions have been realised.
IMS Diving performing propeller polishing on Bow Tribute
SEEMP, fleet performance and environmental management system plan
Since the implementation in 2013, the Ship Energy Efficiency Management plan (SEEMP) enables us to implement specific counter measures if a negative energy efficiency trend occurs. From 2015, this also includes quarterly auto-generated energy efficiency reports on all vessels, including the externally managed fleet.
Odfjell’s unique alert based fleet performance system utilises dashboard technology for constant shore based monitoring of the fleet’s energy efficiency.
This system, in combination with retrofitting reversed osmosis plants, has led to a consumption reduction on boilers of 38% at sea and 21% in port, equaling 6,000 tonnes fuel or 17,000 CO2 annually. To further reduce the probability of pollution, Odfjell cooperates with US authorities to enhance our Environmental Management System plan (EMSP). The plan addresses hardware solutions, procedures, and environmental awareness.
Waste minimisation and emission reduction programmes at terminals
Throughout our organisation, we strive to reduce waste by modifying processes for waste segregation, recycling and disposal. Our facility in Houston maximises the recycling programme by waste segregation, and our terminal in Rotterdam has installed a new boiler system that improves efficiency and sustainability by utilising waste gas from ship transfer and tank usage, as an energy source. This reduces our CO2 footprint at our terminals.
Vapour recovery systems are now utilised at terminals in Asia as well as Europe and America, and the process of installing equipment to reduce fugitive emissions is ongoing. These systems cut emitted pollutants and reinforce Odfjell Terminals’ commitment to the communities in which we operate. We have started the process of reducing fugitive emissions by installing equipment such as double seals on our pumps and emission free valves on our gas condensate project. We continue to prioritise these systems to ensure that we minimise emissions during operations.
Ship recycling
Odfjell has implemented thorough procedures to secure that the ship recycling process is executed in a safe manner for the environment and personnel involved.
Odfjell regularly audits recycling yards, use BIMCO's new standard recycling contract (RECYCLECON), and we require that the yards follow a ship recycling plan. A recognised third party authority, Lloyds’, performs an on board survey and issue an IHM (Inventory of Hazardous Materials) statement of compliance. This includes an inventory of materials that could potentially harm environment or personnel during the recycling. To date, 23 of our ships have been certified, another four are due in 2017. In addition, we obtain ‘Green Passports’ for all ships before the age of 25.
The yards Odfjell uses are certified as compliant with the Hong Kong Convention and the 2012 Guidelines for Safe and Environmentally Sound Ship Recycling.
ISO certification
International standardisation continues to be a focus across the organisation. Odfjell Ship Management holds an ISO 14001 certification, covering 45 vessels under own management. This certification identifies relevant environmental considerations and lists key issues to be followed up in an environmental programme.
All terminals are also compliant with the internal national standards ISO 14001, ISO 9001 and the Chemical Distribution Institute-Terminals (CDI-T). The terminals are audited by a third party to ensure confirmation to these standards. The terminals work to mitigate risks globally through the use of a key control framework that effectively communicates expectations to the entire organisation.
Odfjell Terminals continues to develop key global standards in operational excellence, engineering, and maintenance to continue to reinforce operational discipline across the organisation.
Supporting biodiversity in the Philippines
The Odfjell employees in the Philippines take an active part in local tree-planting, in cooperation with the non-profit, non-governmental organisation Fostering Education & Environment for Development (FEED). FEED initiates scientific and practical research, social forestry programmes, and community development initiatives to grow, preserve and protect Philippine biodiversity.
SOCIAL RESPONSIBILITY
Empowering our employees
A competent, secure and professional personnel on shore and on board is vital for Odfjell’s well-being and success, today and in the future. In line with our commitment to support and enhance our personnel’s competencies, we executed the following programmes in 2016:
• Leadership- and Followership Development Programme for seafarers
• Effective Communication Workshop, developed for crewing staff in frequent contact with seafarers
• Safety Refresher Training, as stipulated in the new International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW)
• New Odfjell Diploma of Competency (ODoC). In line with STCW and patterned from the Norwegian system of certifying able-bodied seamen and motormen (Fagbrev)
• 3,015 Course Manned Days (CMD) for in-house courses
• 9,870 CMD for external courses
Supporting local communities
We are dependent on our competent, safe and professional personnel, and in effect also dependent on viable local communities in the countries where we operate.
In 2011, Odfjell signed up for UNGC, the world’s largest corporate sustainability initiative. Odfjell works to facilitate an efficient implementation of UNGC's ten principles in the areas of human rights, labour rights, environment, and anti-corruption. We submit an annual Communication on Progress (COP) report, including current and new goals for the coming period. These reports can be found at Odfjell.com.
Since 2014, Odfjell has contributed with a three year financial support programme for the Norwegian Church Aid’s work in Puntland, Somalia. The aim is to give former pirates vocational and business training, and enable them to establish a new, sustainable livelihood. The Norwegian Church Aid also conducts local information campaigns, encouraging the community to dissociate from piracy, thereby reducing the piracy recruitment among the younger generations.
To further support the local community and to help sustain the maritime industry in the country, Odfjell is hiring crew from the Philippine orphanage Boys Town. This opens new opportunities for less fortunate students, and inspires seafaring interest in the community.
GOVERNANCE AND COMPLIANCE
Our employees’ wellbeing and safety are paramount. Odfjell does not tolerate discrimination or harassment of any kind, every employee shall be treated with respect and dignity.
Odfjell’s Code of Conduct’s chapter Non-discrimination was extended and renamed to Sexual & Other Unlawful Harassment in 2016. Every employee shall be given equal opportunities for development of skills, new challenges and promotions, irrespective of gender, ethnicity, religion, age, sexual orientation, disability or culture.
A Corporate Compliance Manager (CMM) and an Environmental Compliance Officer (ECO) were established for Ship Management (SM) in 2016, in addition to the existing Designated Person function and Compliance Officers of Odfjell. The CCM and ECO are applicable to all SM employees on board and on shore, and ensure conformity with the requirements of ISO 14001:2014 and the Environmental Management System Plan.
System audits
Odfjell has implemented compliance monitoring programme via internal system audits. The programme focuses on internal financial control, IT security and compliance with our QHSE and CSR requirements. Corporate QHSE conducts these internal system audits, with the support of Finance and IT. The audits are conducted on operative and staff units, to ensure compliance with corporate and management level requirements and guidelines. 12 internal system audits, including seven audits of owned or managed terminals and four audits of overseas offices were carried out in 2016.
In addition, a large number of other internal, external and customer audits are conducted within operative units and on our vessels on a regular basis. These audits are most often triggered by regulatory requirements, certificates or contracts. None of the external audits resulted in withdrawal or suspension of certificates or contractual cancellations in 2016.
Anti-corruption programme
Odfjell’s Anti-Corruption council was established in 2012. Since 2013, we have been a member of the Maritime Anti-Corruption Network (MACN), a global business network working to eliminate corrupt practices in the maritime industry, and participated in the network meetings.
Odfjell’s anti-corruption programme has focused on actions after EY's health-check for anti-corruption. This health check is based on best practice, and all actions were closed in 2016. Odfjell has also signed a contract with an integrity software provider. This solution will integrate ethics and anti-corruption training, policy signing, documentation and monitoring.
Major activities in 2016 were related to risk assessment, whistle-blowing policies, Corporate Supplier Conduct Principles, Code of Conduct implementation, Integrity due diligence, audits and establishment of training and signing programme.
Security and piracy
Piracy and armed robberies continue to be a challenge for international shipping. The main areas of concern are the Gulf of Guinea, particularly Nigerian waters, Somalia and adjacent waters, as well as Southeast Asia, with emphasis on Indonesia and the Sulu Sea. Privately contracted security personnel are being used to protect some transits. Armed robberies and hijackings in the Far East have become a concern, particularly the recent kidnap-for-ransom strategy employed by the Abu Sayyaf group in the southern Sulu Sea. Increased measures have been implemented on relevant Odfjell managed ships.
Refugees
Refugees crossing the central and eastern Mediterranean Sea is a major concern. Odfjell ships transiting the area are frequently equipped and prepared to participate in search and rescue operations to assist refugee vessels in distress.
Odfjell seeks to differentiate ourselves by operational excellence and the highest service level. We ship and store products that are used throughout the world on a day to day basis, but these products can also endanger the life of people and the environment if handled inappropriately. We have a great responsibility, and continue to strive for sustainability by implementing thorough QHSE and CSR measures for our global organisation.
