DAMPSKIBSSELSKABET NORDEN A/S. CSR Highlights 2016

Transcription

1 DAMPSKIBSSELSKABET NORDEN A/S CSR Highlights 2016

2 LETTER FROM THE CEO CSR HIGHLIGHTS 2016 NORDEN seeks to create value for business and society Since its establishment in 1871, NORDEN has made a point of being a responsible company also in relation to the society which NORDEN is a part of. In 2009, our efforts within Corporate Social Responsibility (CSR) were put into a formal framework by establishing a devoted CSR Department at the head office. In 2016, we took another important step within this field by increasing focus on CSR efforts that contribute to create value for NORDEN s customers, for society and for the Company. This goal is in line with NORDEN s Corporate Soul Purpose by which we commit ourselves to contribute to smarter global trade and, in doing so, social and economic development worldwide. You can learn more about how far we have come by reading NORDEN s CSR Report 2016, the annual report 2016 and the following pages in this supplement to NORDEN NEWS. Jan Rindbo CEO

3 PEOPLE FOCUS CSR HIGHLIGHTS 2016 People It is the people working at NORDEN who makes the difference. They are the ones who generate turnover and earnings, and those who can differentiate NORDEN from other shipping companies. In order to do that, employees need decent working conditions and the opportunity to grow. The baseline responsibility is respect for every employee s fundamental rights. NORDEN is committed to implement the UN Guiding Principles on Business & Human Rights on how corporations can prevent negative impacts on human and labour rights. What NORDEN focuses on Good working conditions and employee wellbeing A positive and supporting work environment making employees feel good about coming to work Developing and keeping the skills of our workforce up to date NORDEN s Code of Conduct Frames the standard of conduct expected of all employees Employees Gender distribution on shore % women 67% men Nationalities 24 Gender distribution at sea 2% women 98% men

4 REDUCTION OF FUEL CONSUMPTION CSR HIGHLIGHTS 2016 Environment and climate All fuel driven transportation has a negative impact on the environment. This is also true for shipping although transportation of goods and raw materials at sea is one of the most fuel-efficient types of transportation. The environmental impact of shipping mainly stems from potential oil spills and air emissions from the vessels' exhaust. Shipping's share of global emissions of the greenhouse gas CO₂ is presently at 2.2%. Although seaborne transportation is expected to grow as a result of increases in population figures, the emission level should stay at 2.2% according to NORDEN and the other members of the Danish Shipowners Association. This means that the global target for CO₂ reductions should include shipping and the industry should contribute with its fair share of global CO₂ reductions. What NORDEN does Evaluating fuel efficiency before acquiring or chartering a vessel Monitoring and optimising fuel consumption during voyages Updating technology on owned vessels NORDEN s CO₂ target % reduction CO₂ reduction since 2007 Dry cargo 9% Tankers 12% NORDEN s ambition 0 oil spills Oil spills in

5 ZERO TOLERANCE TOWARDS BRIBERY CSR HIGHLIGHTS 2016 Fighting corruption Corruption constitutes a barrier for commerce and global trade. Corruption escalates costs in shipping and promotes unfair competition in the market. In shipping, corruption may also endanger the safety and well-being of the crew, and it poses significant legal and reputational risks for the Company. NORDEN has a zero-tolerance policy towards bribery. At the same time, NORDEN works to prevent facilitation payments, which is essentially having to pay a small amount to get access to a service to which one is already entitled a document, a permit, etc. What NORDEN does Demands for facilitation payments must be reported to the head office Employees participate in annual anti-corruption training Collaboration with other shipping companies to reduce the risk of facilitation payments in ports Whistleblower system Suspicion of bribery can be reported to NORDEN s whistleblower system SafeLine, which ensures that the suspicion is investigated Global efforts NORDEN is a member of the Maritime Anti- Corruption Network, which presently has more than 75 members from across the shipping industry

6 ALL EMPLOYEES MUST RETURN HOME FROM WORK SAFELY CSR HIGHLIGHTS 2016 Vessel safety Shipping involves safety risks which NORDEN carefully manages to protect crew, cargo and vessel. In short, NORDEN s top priority is always crew safety. To support this culture, NORDEN has a safety management system in place in accordance with UN regulations on safety at sea (International Safety Management Code). The technical standard and operation of the vessels is checked on an ongoing basis both internally and externally. And every year, NORDEN evaluates the status of the safety arrangements and where further efforts may be needed. Safety initiatives in 2016 Increased focus on critical safety procedures Safety campaign focusing on protecting hands and fingers Roving safety officers Workshops at officer seminars Continued risk of piracy Continued risk of piracy in the southern part of the Red Sea, the coast of West Africa, the Gulf of Guinea and in Southeast Asia NORDEN follows best practice security standards (BMP4) in high-risk areas and deploys armed security guards when relevant NORDEN s ambition Status fatalities 0 fatalities 0 accidents 0 piracy incidents 5 accidents resulting in absence 0 piracy incidents

7 SUPPLY CHAIN PERSPECTIVE CSR HIGHLIGHTS 2016 Responsible Supply Chain Management NORDEN has thousands of suppliers providing the Company with anything from fuel and spare parts to ship provisions, workwear and lubrication oil as well as agents who play a key role in port operations worldwide. NORDEN expects suppliers to observe the Company s CSR standards. The Company works actively with responsible supply chain management based on UN principles and regulations on human rights and anti-corruption, which are key focus areas in NORDEN s CSR efforts. NORDEN has developed a programme for responsible supply chain management (RSCM). NORDEN s ambition Expand NORDEN s RSCM programme with at least 5 additional first-tier suppliers each year Status 5 additional first-tier suppliers enrolled in RSCM programme in first-tier suppliers part of RSCM programme since 2013 Systematic assessment of CSR challenges related to agents piloted in 2016 NORDEN s expectations All suppliers who are part of the RSCM programme are expected to work with CSR on their own

8 Corporate Soul Purpose As custodians of smarter global trade, we are conscious, soulful people uniting a world where every person and action matters. Values Flexibility Reliability Empathy Ambition Business model Based on a global network of offices and good access to customers, NORDEN generates earnings by combining cargoes with vessels and earning more money on transporting the cargo than what it costs NORDEN to provide the capacity. Dispatchers/cargoes Transport Recipients Mines (Coal, iron ore, etc.) Power plants Agriculture (Grain, corn, etc.) Food industry Forestry (Wood pellets) Construction industry Plants (Cement, steel, etc.) Refineries (Gasoline, diesel, etc.) Transport sector Industry Cargo contracts are entered into through COA contract for multiple transports typically over several years Spot market contract for single voyages FFA paper market for transportation contracts Transport takes place on Owned vessels Long-term chartered vessels (+13 months) Short-term chartered vessels NORDEN s characteristics: ü Established in 1871 ü Active in both Dry Cargo and Tankers ü Owned core fleet supplemented by extensive chartered fleet ü Combination of long-term, stable cargo contracts and significant operator activities in the market ü Global network of offices and port captains in direct contact with customers ü One of the world s largest operators of product tankers through part ownership (50%) of Norient Product Pool ü Listed on Nasdaq Copenhagen ü Transparency in financial reporting, Corporate Governance and CSR