Sustainability

Economic Enhancement

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From Steel to Steel: driving change in the ship recycling industry in India

How can BW LPG as a company create value for society – making people’s lives better, enabling economies to grow, and protecting the environment for future generations? Is it an oxymoron to seek ways to create value for society in the very area where there is so much controversy, particularly for its negative impact on society and the environment? BW LPG aims to be a driving force for change – focusing on the positive impact shipping companies can have on local communities who rely on ship recycling for decent work and economic growth, by doing it in a safe and responsible manner and playing a part to improve industry, innovation and infrastructure in developing countries.

Shipping is a global industry and it is only with international legislation can we enforce a standard approach to responsible ship recycling. In the absence of such global legislation, companies must step up. The ship recycling industry is in a period of transition with an increasing number of yards being certified in line with the Hong Kong Convention. In anticipation of ratification of the Hong Kong Convention, dozens of shipyards in Alang and other locations in South East Asia and Turkey have invested heavily and already reached a level that guarantees Hong Kong Convention standards to ensure ships are recycled sustainably.

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    Hazardous materials

    • Provide Inventory of Hazardous Materials and Waste Certificate (IHM)
    • Remove insulation and asbestos
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    Preparation

    • Pre-cleaning of ship
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    Loose items

    • Remove loose items and all hydro carbon
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    Electrical equipment

    • Disassemble and sort electrical components
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    Steel

    • Separate removal of steel for re-use

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The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted at a diplomatic conference in 2009. The Convention requires facilities to recycle vessels in a responsible manner that do not pose unnecessary risks to human health, safety and the environment, by providing guidelines on the safe handling of environmentally hazardous substances, as well as mandating a minimal standard of working and environmental conditions at recycling yards with appropriate enforcement mechanism such as certification and reporting requirements.

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Calculated Move

Ship recycling is a fundamental part of the shipping value chain. Newbuildings are delivered from yards, and chartered and traded as vessels. At the end of their commercially-viable life, they are sold to be recycled, where steel and useful parts of the vessels are dismantled and reused. The danger is that vessels are recycled in places which offer the highest prices for steel, and higher prices are offered at the expense of operating standards. What happens then is a persistent lack of progress in health and safety standards in developing countries where communities can truly benefit from responsible recycling.

Rather than to exclude facilities based on their geographical location, the only way to ensure health and safety of workers is to impose global legislation. This global legislation will stimulate all countries and individual shipbreaking yards to raise their standards and make substantial progress in the areas of safe and environmentally-friendly ship recycling. If we abandon ship recycling breaking yards where the communities rely heavily on recycling, the international community does not help those yards to improve and prosper. By working with yards in Alang, we can make a direct impact on working conditions, and change the industry for the better.

Recycling BW Havis

The 1992-built LPG Carrier BW Havis was recycled in 2018. BW LPG identified the Hari Krishna Steel Corporation facility in Bhavnagar, Gujarat, India for this recycling. The yard was fully inspected and certified by an International Class Society that it met the requirements of the Hong Kong Convention. BW LPG provided an inventory of all hazardous materials and waste (Green Passport), certified by DNVGL, to the yard to facilitate the safe handling, separation, transportation and storage with no harm to the work force and minimal contact with the sea or unprotected soil. A comprehensive recycling plan was prepared and provided to the yard to ensure strict compliance with BW LPG’s policy. An observer and company supervisor from BW LPG remained on site and provided daily reports on progress, compliance and that the recycling plan was being applied. The recycling of BW Havis was successfully completed after a year at the yard.

BW LPG cannot solve a global, industry-wide challenge on its own. By being transparent in our approach towards responsible ship recycling, legally requiring that yards work with our representatives on the ground to raise and meet our work standards, we hope to be a catalyst and change sentiment towards recycling in South Asia. Responsible ship recycling in full compliance with global standards of health and safety is possible, and it starts with us choosing to work with yards to implement real changes to conditions on the ground.

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Justice

A COMMITMENT TO STAMP OUT BRIBERY IN THE INDUSTRY: A RENEWED FOCUS ON OUR STAND ON BRIBERY

At BW LPG, we are committed to combatting bribery and corruption. In our quest to become the world’s leading provider of maritime energy transportation services, we strive to deliver superior financial results and adhere to safe operating standards, while upholding strong ethical principles.

The Situation

Bribery is a global concern, with the International Monetary Fund estimating that bribery tainted approximately US$2 trillion of transactions globally in 2017, accounting for roughly 2% of the world’s Gross Domestic Product.

Beyond incurring a higher production cost of goods and services, bribery and corruption have negative impacts on the shipping industry. They create uncertainties in operations and place the safety of the crew at risk.

The BW LPG Solution


Policy Guidelines

BW LPG has established an anti-bribery policy that guides our interactions with stakeholders at all levels of the organisation.

  • Comply with applicable laws relating to anti-bribery and corruption in the jurisdictions in which we operate, with respect to the UK Bribery Act, 2010.

  • Support any employee who passes up an opportunity or advantage that would compromise our standards.

  • Ensure that our reputation for ethical behaviour and fair dealing with suppliers, customers, members of the industry and other stakeholders is maintained.

  • Expect all employees to conduct themselves with high standards of integrity.

  • Prohibit the giving or receiving of any gift, cash, entertainment or hospitality where the intention is to influence a business decision.

  • Prohibit unofficial payments or gifts made to facilitate routine government action (facilitation payments) where there is an intention to influence a public official in the performance of his/her official function and gain an advantage in the conduct of business.

  • Prohibit employees from asking for or suggesting any gifts and/or entertainment of any kind or amount from suppliers or any other person.

Anti-Bribery Initiatives

BW LPG expects all employees to conduct themselves with the highest standards of integrity and uphold our stance on bribery and corruption. Employees are responsible for reporting infringements of any applicable laws in the jurisdictions in which the Company operates, particularly with respect to the UK Bribery Act, 2010.

Our ongoing anti-bribery initiatives include:

  • Providing training and guidance to employees on BW LPG’s anti-bribery policy;
  • Requiring staff to report and record all gifts and entertainment received;
  • Supporting any employee who uses our Whistleblowing policy to report any instances of bribery and corruption; and
  • An anti-bribery poster that was distributed to all BW vessels and offices to raise awareness.

A Member of the Maritime Anti-Corruption Network (MACN)

BW LPG is a member of MACN, a global business network that works towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. Apart from promoting good corporate practices in the maritime industry for tackling bribes, facilitation payments and other forms of corruption, MACN collaborates with key stakeholders, ranging from governments to international organisations, to identify and mitigate the root causes of corruption within the industry.

The Impact

As a responsible employer, our anti-bribery guidelines and initiatives ensure a supportive environment for our people to carry out their duties with integrity and purpose.

At the same time our membership in MACN allows us to be part of a global business network for collective impact against bribery and corruption. Comprising over 90 companies across the maritime industry, MACN’s members represent a significant percentage of the total global tonnage and play a key role in ocean transport. Since its inception, MACN, in partnership with important stakeholders, has attained good success in tackling corruption. MACN’s country-specific initiatives have produced tangible outcomes, including the removal of trade barriers, enhanced governance frameworks and substantially lower levels of corruption in maritime trade.

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