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Environmental Activities Results (FY2015) and Targets (FY2016)

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Every fiscal year, MOL Sets Environmental Targets related to each important issue, and works steadily to achieve those targets.

Key Environmental Issues

In March 2014, we identified the highest-priority environmental issues and set about addressing those issues in a proactive manner. To identify these priorities, we analyzed issues from international conditions regarding about environmental issues, the opinions of stakeholders including customers, investors, and so on, as well as our own internal viewpoints. Finally, through discussions in the CSR and Environment Committee, we identified the following five issues.

  • Comply with environmental regulations
  • Utilization of technologies to reduce environmental impact
  • Disclose environmental data
  • Ensure safe operation
  • Contribute to conservation of biodiversity

Midterm Environment Plan:
Fully aware of the environmental impact of its business activities, the MOL Group will lead the world shipping industry by proactively responding to environmental regulations and differentiating our services by aggressively developing and adopting the best technologies to protect the environment.

Legend:◎Achieved ○Generally achieved △Partially achieved
×Did not achieve (target period/content changes)

FY2015 Environmental Targets FY2015 Environmental Activities and Results
1. Build environmental business, which contributes to sustainable society
Study R&D of advanced environmental technology, creation of new environmental businesses, and taking part in logistics that contributes to the environmental protection.


 
2. Comply with Environmental Regulations
Reduce environmental impact through overall optimization and protect the global environment by engaging in company-wide efforts including ballast water management, ship recycling, prevention of global warming, prevention of atmospheric pollution, and response to diverse environmental regulations.

1. Further promote installation of the ballast water treatment system prior to the enforcement of new regulations, while monitoring developments in the ballast water convention.
Test the effectiveness of the ballast water treatment system installed on a vessel, and provide the manufacturer with feedback on defects/malfunctions/failures and requests for improvements.

1. Appropriately installed ballast water treatment systems, while monitoring developments in the ballast water convention.
Number of vessels equipped with the system in FY2015:30
Evaluated effects of ballast water treatment systems installed on the vessels, and provided feedback and suggestions for improvement.

2.Continue to consider installation of SOx emission reduction systems (scrubbers). Comply with SOx Emission Control Area (ECA) rules, which took effect in January 2015.
Collect information on supplies of low-sulfur fuels, which produce fewer SOx emissions.

2.Continued to consider installation of SOx emission reduction systems (scrubbers). Started research on retrofitting car carriers with SOx scrubbers.
Began comparing functions of manufacturers' equipment such as SOx scrubbers.
Continued to collect information on supplies of low-sulfur fuels, which produce fewer SOx emissions.

3. Continue to verify NOx reducing system (Selective Catalytic Reduction; SCR), and make a final evaluation.

3. Continued to verify NOx reducing system (Selective Catalytic Reduction; SCR) while using heavy fuel oil.

4. Develop and implement specific reduction measures for complying with domestic environmental regulations such as the Amended Energy Conservation Act and Tokyo Metropolitan Environmental Security Ordinance.

4. Developed and implemented specific reduction measures in cooperation with MOL Engineering Co., Ltd., to comply with domestic environmental regulations such as the Amended Energy Conservation Act and Tokyo Metropolitan Environmental Security Ordinance. Has reduced unit energy consumption by 15.9%, compared to the 6% target for FY2009.

5. Establish the selection criteria for environment-friendly scrapping yards in preparation for the enforcement of the Hong Kong International Convention.

5. Conducted a wide range of inspections in scrapping yards. Discussed the scrapping yard selection criteria based on international interpretation of the Hong Kong International Convention.

3. Proactively Utilize Technologies to Reduce Environmental Impacts
Promote energy-saving innovations for ships and eco-sailing through active utilization of refined energy-saving technology that MOL acquired in the ISHIN project for the next-generation vessel concept.
Reduce CO2 emissions 11.5%(*) per ton-mile by FY2016 compared to FY2009.

1. Reduce environmental impact
(1) Reduce CO2 by 1% in FY2015 compared to FY2014.
(2) Reduce NOx by 1% in FY2015 compared to FY2014.
(3) Reduce SOx by 1% in FY2015 compared to FY2014.

1.Continued efforts by business divisions on further enhancement and increased use of slow steaming operation.
Installed systems to improve propeller efficiency such as PBCF on all 15 newbuilding vessels delivered during FY2015.
Studied adoption of the optimal trim system and vessel operation support system and conducted demonstration tests on the vessels in operation.
Reduced CO2 emissions by 3.0% compared to FY2014 (by 17.9% compared to FY2009); Reduced NOx emissions by 3.0% compared to FY2014; Reduced SOx emissions by 5.2% compared to FY2014.

2. Install and verify the low-temperature waste heat recovery system (Variable Phase Cycle : VPC) on an actual vessel.

2. Started to order and assemble VPC system. Continued review of equipment layout.

3. Develop and build methanol-fueled vessels.

3. Finished a verification test of the methanol-fueled engine. Conducted test sailing with the new engine (tested at the end of March).

4. Conduct feasibility study of positioning the engine room for installing LNG fuel and SOx scrubbers for the new building containership.

5. Begin planning and design of an LNG-fueled tugboat.

4. Conducted feasibility study of the specification changes required to equip containerships with methanol-fueled engines.

5. Continued study of the design, tank, and engine of an LNG-fueled tugboat.

6. Promote projects that use wind power, such as Power Assist Sail and Wind Challenger Project.

7. Verify feasibility of a car carrier with teardrop-shaped stern (design a smoother stern shape).

8. Verify wind pressure reducing technologies on containerships.

6. Power Assist Sail: Conducted Hazard Identification (HAZID*1), which is currently under evaluation.
Window Challenger Project: Continued the study with the project participant organizations.

7. Determined the basic vessel shape and layout based on the effects of different loading capacities. Started verification of wider-breadth type of vessel.

8. Installed a windscreen on the bow of a containership, and started collecting in-service data.

9. Continue to verify and develop DPF <PM (particulate matter) removal system> installed on a vessel.

9. Conducted durability test of heavy fuel oil on a vessel that is already installed with Diesel Particulate Filter (DPF). Tests to verify the effectiveness are under way.

10. Develop technologies to improve combustibility of vessel fuels at the MOL Technology Research Center.

10. Continued joint R&D on a special spray nozzle with a manufacturer, university, and research institute. Verified test data, using the test engine.

11. Thoroughly implement Eco-Sailing and promote development of an advanced operation supporting system that improves operation efficiency.

11. Started research aimed at using big data for vessel, while taking into account joint use of data with manufacturers.

12. Continue to examine environmental concept vessels in consideration of internal needs and seeds and refine the concept of the environmental business.

12. Studied environmental concept vessels.

13. Reduce unit energy consumption at offices and on domestic coastal vessels for the medium to long term. Reduce by 1% in FY2015 compared to FY2014.

13. Reduced unit energy consumption at offices by2.7% compared to FY2014 but on the domestic coastal vessels side, consumption increased by 0.1% due to factors including stormy weather.

14. Consider introduction of a wide variety of leading-edge environmental impactreducing technologies on the world's largest 20,000 TEU containership.

14. Introduced a variety of leading-edge environmental impact-reducing technologies on the world's largest 20,000 TEU containership.

15. Begin preparations to build two ferries that feature both high speed and excellent environmental performance.

15. Started construction of two ferries with delivery slated for 2017.

4. Actively Disclose Environmental Data
Respond to stakeholders' interests in MOL's environmental policy by disclosing KPI for transport with low environmental impact and various environmental data using the Web site and Safety, Environmental and Social Reports.

Proactively promote calculation, analysis, and disclosure of following data and disclosure of reduction effects.

  • Energy consumption volume
  • GHG emission volume (Including Scope 1–3)
  • SOx, NOx emission volume
  • Consumption volume of other resources

1-4.Disclosed environmental data through the Environmental and Social Report, the company Web site, and other various external media. Recognized in the Climate Disclosure Leadership Index (CDLI). In addition, MOL Liner made its own disclosure of CO2, NOx, and SOx emissions on its Web site.

5. Accept third-party verification of CO2 emissions to improve accuracy and transparency

5. Accepted third-party (SGS) verification of CO2 emissions and improved accuracy and transparency.

5. Ensure Safe Operations
Ensure safe operations to prevent unexpected environmental impacts, and pursue zero ocean pollution caused by marine incidents.

1. Prevent serious marine incidents by improving MOL's safe operation system.

1. Held the company-wide biannual safety campaign twice, and held division-by-division safety operation meetings to enhance safe operation. In addition, regularly visited vessels. Serious marine incidents occurred despite these efforts to raise safety awareness of employees both on land and at sea.

2. Further improve the quality of new vessel design and construction.

2. Reported problems to manufacturers/held information exchange meetings with them.
MOL and its group companies conducted shipyard assessment visits.
Checked the shipyards' HSE(*) manuals to share safety standards among MOL and shipyards. Validated health/hygiene/safety management methods of workers and superintendents.

3. Continue to adopt the MOL Safety Standard Specifications on newbuilding vessels.

3. Adopted for all 15 newbuilding vessels delivered.

6. Contribute to Conservation of Biodiversity
Raise awareness of biodiversity protection, promote waste reduction from vessels, and participate in volunteer activities for conserving biodiversity on a company-wide level.

1. Continue to reduce waste from vessels such as on-board waste, waste oil, and bilge.

1. Continued to reduce waste from vessels such as on-board waste, waste oil, and bilge.

2. Prevent cross-border transportation of foreign marine organisms through ballast water exchange in the open sea, and implement vessel cleaning to remove organisms on vessels to help conserve biodiversity.

2. Disseminated Ballast Water Management Report, which is the new requirement concerning ballast water management in the U.S., to vessels. Shared case study information on problems caused by ballast water exchange operations and issued warnings of dangers related to the use of ballast water.

3. Support volunteer activities to help conserve biodiversity in Japan and overseas, such as tree planting.

3. Conducted beach cleanup in Kamakura and Kashima in Japan, and in Hong Kong and Malaysia overseas.

4. Promote navigation with special consideration in the areas with high populations of large-sized marine life.

4. Circulated the information about sea areas with high populations of large marine, on the Port and Navigation Information.
Especially containerships, which frequently sail in sea areas with high populations of large marine life, continued to operate along the North America East Coast and in other areas in conformity with laws and regulations.

7. Advocate Transport Policies and Measures Aimed at Contributing to Reduction of Environmental Impact
Proactively make recommendations so that environmental policy promotes utilization and reinforcement of the high environmental efficiency of shipping as transport mode, and contribute to environmental impact reduction and sustainable growth.

1. Make various efforts to encourage the modal shift, which has a low environmental impact, to industry groups, government agencies, and relevant ministries.

1. Promoted the Modal Shift, which aims at reducing the environmental impact of transportation, in cooperation with Japan's Ministry of Land, Infrastructure, Transport and Tourism and Ministry of Economy, Trade and Industry.

2. Actively participate in energy-saving policies.

2. Proactively made recommendations through the Japanese Shipowners' Association and Ministry of Economy, Trade and Industry to develop a more feasible Monitoring, Reporting, and Verification (MRV) system, which is to be introduced in the near future.

8. Environmental Investment
Make environmental investment of 20 billion yen in 3 years, 60 billion yen in 6 years to respond to environmental regulations and to promote energy-saving innovation for vessels.

1. Make proactive investments in new environmental technologies such as methanol-fueled vessels.

2. Further improve waste heat energy recovery systems for vessel main engines.

3. Promote installation of ballast water treatment systems prior to the enforcement of new regulations, and respond to environmental regulations.

1. Environmental Investments in FY2015 was 4.63 billion yen. Recalculated again after results were finalized.

(Details) Environment-related R&D activities: High-efficiency waste heat energy recovery system, Methanol-fueled vessel etc. 0.28 billion yen
  Utilization and expansion of existing environmental technologies: PBCF, Electronically controlled engine, Onshore power supply system, Low-friction hull paint, etc. 0.91 billion yen
  Compliance with environmental regulations: Ballast Water Treatment System, Ship Recycling Regulation and SOx Regulation related etc. 2.19 billion yen
  Initiatives to save bunker fuel: Fuel additives, optimal trim, vessel operation support system 0.99 billion yen
  Initiatives of Group companies: International Ocean Shipping group companies' environment investments 0.26 billion yen
1. Build environmental business, which contributes to sustainable society
Study R&D of advanced environmental technology, creation of new environmental businesses, and taking part in logistics that contributes to the environmental protection.

MOL established the Technology, Innovation, and Environment Committee to promote the development and adoption of innovative environmental technologies that increase corporate value and enhance the effectiveness and profitability of our businesses.

  • Build a system that promotes internal sharing, extension, and review of information, and allows us to tap into and discover needs, including potential ones, from our customers' viewpoint.
  • Create a system that sets mid- and long-term targets for environmental technologies, creates road maps, and introduces new technologies in the MOL Group owned and operated fleet.
  • Explore and review issues in the maritime industry and formulate solutions.
2. Comply with Environmental Regulations
Reduce environmental impact through overall optimization and protect the global environment by engaging in company-wide efforts including ballast water management, ship recycling, prevention of global warming, prevention of atmospheric pollution, and response to diverse environmental regulations.
  • Further promote installation of the ballast water treatment system prior to the enforcement of new regulations, while monitoring developments in the ballast water convention.
    Test the effectiveness of the ballast water treatment system installed on a vessel, and provide the manufacturer with feedback on defects/malfunctions/failures and requests for improvements.
  • Jointly collect information on scrubbers and fuel supply, with an eye toward retrofitting vessels with SOx emission reduction systems (scrubbers).
  • Collect and verify data on installed NOx reducing systems and complete the demonstration test.
  • Develop and implement specific reduction measures for complying with domestic environmental regulations such as the Amended Energy Conservation Act and Tokyo Metropolitan Environmental Security Ordinance.
  • Select environment-friendly scrapping yards.
  • Prepare the inventory related to the Hong Kong International Convention, and promote its use on vessels.
  • Maintain the same level of paper, water, and electricity consumption as in FY2015.
3. Proactively Utilize Technologies to Reduce Environmental Impacts
Promote energy-saving innovations for ships and eco-sailing through active utilization of refined energy-saving technology that MOL acquired in the ISHIN project for the next-generation vessel concept.
Reduce CO2 emissions 11.5%(*) per ton-mile by FY2016 compared to FY2009.
  • Reduce environmental impact
    (1) Reduce CO2 by 1% in FY2016 compared to FY2015.
    (2) Reduce NOx by 1% in FY2016 compared to FY2015.
    (3) Reduce SOx by 1% in FY2016 compared to FY2015.
  • Install and verify the VPC system on an actual vessel.
  • Deliver 3 of methanol-fueled vessel series.
  • Continue deeper feasibility study of the specification changes required to equip containerships with methanol-fueled engines.
  • Study the design, tank, and engine of an LNG-fueled tugboat.
    Study the conversion of other types of vessels to LNG-fuel.
  • Promote projects that use wind power, such as Power Assist Sail and Wind Challenger Project.
  • Promote R&D on ways to reduce wind resistance on car carriers.
  • Continue to verify wind resistance reducing technologies on containerships.
  • Continue to verify and develop DPF <PM (particulate matter) removal system> installed on a vessel.
  • Fully practice Eco Sailing/Continue research on the use of big data for vessels.
  • Reduce unit energy consumption at offices and on domestic coastal vessels for the medium to long term. Reduce by 1% in FY2016 compared to FY2015.
  • Move ahead with construction of four ferries, which will offer improved environmental performance (two slated for delivery in 2017, two in 2018).
  • Promote more energy-efficient vessel operation through the use of improved power management systems.
4. Actively Disclose Environmental Data
Respond to stakeholders' interests in MOL's environmental policy by disclosing KPI for transport with low environmental impact and various environmental data using the Web site and Safety, Environmental and Social Reports.
  • Proactively promote calculation, analysis, and disclosure of following data and disclosure of reduction effect through the Environmental and Social Report, the company website, and various other external media.
    (1) Energy consumption volume
    (2) GHG emission volume (Including Scope 1-3)
    (3) SOx, NOx emission volume
    (4) Consumption volume of other resources
  • Continue third-party verification of CO2 emissions.
5. Ensure Safe Operations
Ensure safe operations to prevent unexpected environmental impacts, and pursue zero ocean pollution caused by marine incidents.
  • Prevent serious marine incidents by improving MOL's safe operation system.
  • Further improve the quality of new vessel design and construction through health, safety, and environmental (HSE*) activities at shipyards.
  • Continue to adopt the MOL Safety Standard Specifications on newbuilding vessels.
6. Contribute to Conservation of Biodiversity
Raise awareness of biodiversity protection, promote waste reduction from vessels, and participate in volunteer activities for conserving biodiversity on a company-wide level.
  • Continue to reduce waste from vessels such as on-board waste, waste oil, and bilge.
  • Prevent cross-border transportation of foreign marine organisms through ballast water exchange in the open sea, and implement vessel cleaning to remove organisms on vessels to help conserve biodiversity.
  • Support volunteer activities to help conserve biodiversity in Japan and overseas, such as tree planting.
  • Promote navigation with special consideration in the areas with high populations of large-sized marine life.
7. Advocate Transport Policies and Measures Aimed at Contributing to Reduction of Environmental Impact
Proactively make recommendations so that environmental policy promotes utilization and reinforcement of the high environmental efficiency of shipping as transport mode, and contribute to environmental impact reduction and sustainable growth.
  • Make various efforts to encourage the modal shift, which has a low environmental impact, to industry groups, government agencies, and relevant ministries.
  • Actively participate in energy-saving policies.
8. Environmental Investment
Make environmental investment of 20 billion yen in 3 years, 60 billion yen in 6 years to respond to environmental regulations and to promote energy-saving innovation for vessels.
  • Make proactive investments in new environmental technologies such as methanol- and LNG-fueled vessels.
  • Develop a low-temperature waste heat recovery system (VPC).
  • Promote installation of ballast water treatment systems prior to the enforcement of new regulations, and respond to environmental regulations.

* HSE: Health, Safety & Environment.

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