SUSTAINABILITY ACTION PLAN 2013

Transcription

1 SUSTAINABILITY ACTION PLAN 2013

2 January 2013 Content Endorsement 4 Technical Operations: Vision and mission 5 Maersk Tankers A/S and Broström Sustainability Policy At Maersk Tankers and Broström we recognize that a sustainable future is integral to the way we conduct our business. We place a high priority on the health, safety and security of our employees and assets as well as on the wellbeing of all those contributing to or affected by our operations. We are committed to the protection and conservation of the environment and we aim to integrate sustainable thinking and corporate social responsibility into all our business processes and business relationships. Employee skills and competencies are developed by continually raising awareness and impartment of training. We promote the health, safety and security of all our employees through managing risks and changes with prudence and promoting a strong safety culture. It is the objective of Maersk Tankers and Broström to provide a safe workplace with zero work-related injuries. We promote good occupational health and a healthy lifestyle for all our employees. development by means of management commitment and motivating our employees. We aim to continuously reduce emissions, optimise our operations, have zero spills, zero incidents, avoid harm to the environment, and to find innovative and timely solutions for improvement. We recognize that our operations are far reaching and have a global influence. With this in mind, we work diligently with our employees, local communities and internationally recognized bodies to ensure that social factors are integral to our business principles. We assure consistent and best-in-class quality in our services to external and internal customers through efficient yet safe operations and the continuous monitoring of our performance. We promote continual improvement as a principal driver by knowledge-sharing practices and the timely review of our management systems while always meeting or exceeding all applicable legislative and regulatory requirements. Roadmap 2013: Sustainability Strategy Update 6 Sustainability compass 8 Health, Safety, Security, Quality and Vetting 10 Fuel optimisation: Working with innovation 14 Environment and CSR 16 Crewing 20 Technical Operation 22 Group core values 24 It is our policy that no employee, contractor or visitor shall be under the influence of alcohol or drugs while onboard our vessels. We continue to maintain our strong focus on the protection of the environment and sustainable This Policy statement is in support of the Maersk Principles of Conduct. The Maersk Tankers and Broström Sustainability Action Plan supports the ambitions of this policy. Tommy Thomassen VP, Head Of Technical Operations. Maersk Tankers Hanne B. Sørensen Chief Executive Officer Maersk Tankers A/S

3 Page 4 Page 5 Endorsement At Maersk Tankers we recognize that a sustainable future is integral to the way we conduct our business. With this in mind, we work diligently with our employees, local communities and internationally recognized bodies to ensure that environmental and social factors are integral to our business principles. During the last years, Maersk Tankers has worked continuously in improving our sustainability performance and reaching targets. Up to now, 80 percent of our focus has been on risk, making sure that we are always fully covered, and only 20 percent focus on the actual opportunities lying within. Today we can conclude that our efforts shows good results, having programs in place, leadership within the tanker industry established and cost savings on resilience and risk managed in other words, MT are ready to take the next step and increase opportunity focus, starting by engaging external partners and customers. The time to position ourselves is now, if we want to be a competitive company in the future. Maersk Tankers need to ensure that our performance results and focus on sustainability is presented to customers. This focus on sustainability is not a waste of time, but rather a matter of timing. For most companies, sustainability is still a nascent discipline. However, it is a fact that a sustainable change-of-attitude has evolved significantly over the past decade, and the interest is becoming more and more inevitable; an increasing number of our customers are now implementing responsible procurement programs of their own and increasingly turn to suppliers with high sustainability ratings and standard. As we have our own house in order, MT can now move towards engaging customers on this issue and align ourselves with their ambitions and strategies. Activities involves among other things establishment of partnerships with e.g. NGO s, local government units and piers, to set minimum levels of requirements as well as discuss and agree with customers on a definition of responsible tanker business. By asking customers how they are going to manage their sustainability strategy when it comes to choosing suppliers, we can learn how to hook them on Maersk Tankers initiatives and projects and get an early advantage compared to our competitors. It can be difficult to determine the exact value from engaging sustainability, although we do see commercial benefits from addressing strategic planning and programs for risk and resilience; cost savings from e.g. implementation of new efficient technologies reducing fuel consumption, or less lost-time accidents increase our on-board productivity. We feel confident that by leading the way, Maersk Tankers will not only be able to help lift the bar in the industry but actually also create future standards, giving our organization a strong competitive edge and commercial advantage at an early stage. Best regards Tommy Thomassen VP, Head Of Technical Operations. Maersk Tankers A/S

4 Page 6 Page 7 "Our vision is to be best in class and be the recognised industry leader by our customers, providing second-to-none safe, sustainable and cost-efficient cargo transport solutions through innovative design and engaged employees" Technical Operations: Vision and mission Technical Operation Maintain a high communication level of all information required for safe and efficient operations to management team To ensure optimal vessel management and operational efficiency Align operational management with business goals and strategy Maersk Tankers Technical Operations consists of the Technical Fleet Groups focusing on daily technical operations of the fleet, Marine Standards, which provides support on matters related to HSEQ, vetting and Sustainability, and a Crewing function which manages our daily crewing activities. We will deliver best-in-class technical management by meeting or exceeding customer and industry requirements. Our fleet will be operated cost-effectively with a focus on reducing our environmental footprint and ensuring the health and safety of our employees. Crewing To maintain competitive advantage in the marketplace by creating a more customer-focused organization and finding new ways of lowering costs. To gain access to the most attractive customers and cargoes by ensuring to offer top-quality services. CRW TO ENV & CSR HSSQ & VET Health, Safety, Security, Quality and Vetting Promoting the health of our employees through suitable working conditions and healthy lifestyle options. Ensuring a safe and controlled working environment for our employees and those associated with our business. Maintaining the security and safety of our employees, their personal property and our assets at all times. Improving process effectiveness. Environment and CSR Fully integrating Sustainability into the Maersk Tankers organization. Being the sustainable leaders in our industry and standardising the quality of our pools. Collaborating with strategic partners to raise the bar in our industry.

5 Page 8 Page 9 Industry Profile: Illustration of the tanker shipping market and the factors that drive demand and supply. Factors that affect the transport market Factors driving demand Macroeconomic and political factors Economi growth Industrial production Trade patterns Energy & environmental policies Trade policy issues War & conflicts Factors driving supply Newbuildings Shipyard capacity Labour costs Prices of input goods Vessel prices Interest rates Access to capital Energy market Oil Coal Natural gas Nuclear power Hydroelectric power Transport capacity Size of global fleet Newbuilding rate Scrapping rate Age structure Environmental and safety issues Roadmap 2013 Sustainability Strategy Update Maersk Tankers Technical Operation strives for continuous development of the business sustaina bility strategy and it is our belief that this work needs to be championed from all parts of the organization, including top- management commitment: Social and environmental decisions need to be integrated in every business aspect, both technically, commercially and operationally, and the communication of our sustainability strategy needs to be strong and consistent. This will eventually be the key in evaluating the success of integration as well as identifying the areas that still need improvements. Living our own Group Core Values, we are working on leading the industry s way towards greater and sustainable performance, first and foremost by ensuring good and responsible business practices throughout our value chain. Oil market Refinery utilisation Refinery locations Regional imbalances Stock levels Spot and forward prices Industry structure CARBON PACT, 3D In April 2012, Maersk Tankers became the first tanker company to sign a Carbon Pact agreement with a major oil company our customer Statoil. The pact calls for a 10% relative reduction of the footprint of Statoil s voyages over a three year period ( ). As part of the pact we will engage with Statoil in technical, operational and commercial workshops to optimise the shared benefits of the pact. The tanker shipping market BENKERT ENVIRONMENTAL AWARD WINNING US Coast Guard s Admiral William M. Benkert Environmental Protection Award, Florida USA, May 2012: Maersk Tankers wins a silver award in this prestigious competition based on outstanding efforts to protect the marine environment in the category Foreign Vessel Operations, Large Business. Shipowners and logistics operators Service offer Contract forms Geographic concentration Ownership MACN WORKGROUP DESCRIPTION As co-founder and active participant in the Maritime Anti-Corruption Network (MACN), Maersk Tankers are taking the lead on developing information, training material and courses for ship owners and seafarers, focusing on bribery, facilitation payments and agents. First HSE report Membership of Global Compact signed Anti Corruption Programme launched Member of WEF Global Labour Principles launched Member of the Logistics Emergency Teams (LET) Responsible Procurement Member of UN Programme Global Compact launched LEAD Climate Change Strategy approved BP Award x Carbon Pact with Statoil USCG, Benkert Environmental Award Member of WOC (World Ocean Council) Member of MACN (Maritime Anti Corruption Network) Combpack Risk Assortment in CSR (Corporate Social Responsibility) Environmental Strategy Sustainability Action Plan published Materiality issue and stakeholder identification First Annual Group Sustainability Conference Whistleblower Programme launched Mærsk Sustainability Reporting Guidelines First Annual Executive Sustainability Day - focus on Safety Group Health and Safety Strategy approved 3D Thinking introduced - Carbon Pact concept published as story example in Group Sustainability Report 2012 New CO 2 target set: 20% reduction by 2020 (2010 baseline) Follow up on materiality assessment 10.9% CO 2 reduction (2010 baseline) Development of new Environment & CSR strategy

6 Page 10 Page 11 Sustainability compass TECHNICAL OPERATION CAPs 0,85% 4,33% 0,85% Rejections per vessel per year 0,70 0,48 0,70 Main Engine SFOC 103,24 103, ME Cylinder Oil Consumption 2,08 1,9 3,00 Target 2013 New York Copenhagen Paris Mumbai Seoul Shanghai Tokyo Our Sustainability is being monitored through the Marine Standards Balanced Scorecard and KPI (Key performance indicator) system. The Sustainability Compass is the visual appearance of the balanced scorecard which reflects Maersk Tankers performance throughout the year and highlights our areas of improvement and risk when it comes to sustainability issues. Technical Off-service 0,99% 0,44% 0,55 Rio Singapore TO CREWING related terminations - - 0,008 Sea Staff attrition rate 7,50 0,065 0,075 Target 2013 CRW HSSQ & VET HEALTH, SAFETY, SECURITY, QUALITY AND VETTING LTI Frequency 1,12 0,97 0,8 TRC Frequency 3,37 2,56 2,5 Target 2013 Back to Back crewing for officers ( Same ship) 0,60 0,64 0,7 On Time Relief 0,90 0,97 0,95 Matrix Compliance - 0,98 0,96 Document compliance (Red Flag error report) 0,75 0,96 0,95 ENV & CSR Security Observation & Non -conformities PSC Deficiencies per inspection 0,8 1,1 0,5 No. of ISM deficiencies - 3,40 0,5 SIRE observations per inspection - - 5,5 PSC inspections with NIL deficiencies % *The target is based on Technical Vessel Index and relative to 2007 baseline **Internal Inspection Frequency should be 2 inspections per year at intervals not exceeding 6 months ENVIRONMENT AND CSR Oil Spill Frequency 0,002 0,016 0,005 Relative CO2 emissions* 4,38 0,045-0,08 % Garbage Landed at Green Ports 8,15% 27,3% 30% Average waste generated per vessel per day 0,211 0,180 0,172 No. of Supplier CSR audits - 3,00 5,00 Target 2013 "What you don t measure you cannot manage."

7 Page 12 Page 13 Health, Safety, Security, Quality and Vetting CRW TO ENV & CSR HSSQ & VET Where we re aiming in 2013 In 2013, we shall concentrate on following initiatives: Continue development of Maersk Tankers standards incorporating our values, best industry practices, learning from audits & inspection and our experience in the past. Detailed analysis of our Ship Inspection Report Program (SIRE), Tanker Management and Self Assessment (TMSA), Incident and accident data to spot trends and formulate action plan for continuous improvement. Education of our sea and shore based colleagues in carrying out detailed risk analysis for routine/ non-routine activities shall go long way in having resilient operations. Two editions of Safety Awareness Week (SAW) were launched this year with slight amendment to the format basis the feedback received from the vessels. This continues to be a success story with accidents showing sharp dip in the immediately following weeks. Continuous improvement of our processes and development of employees to lay strong foundations for building resilience into our operations. Onus is onto us to eliminate avoidable expenditure and avoid rejections which cause financial and reputational grief to the company. Key Actions and Success in 2012 Safety performance is headed in the right direction with LTIF and TRCF showing the lowest ever figures for us. With an industry average of an LTIF of 1.2, we are well below this figure and close to our targets. 8 of our vessels getting NIL observation during SIRE inspection. This gives us the assurance that we have both men and machines within our fold to deliver absolute perfect results. SIRE Helpline continues to lead our actions for lowering the frequency of repeat SIRE observations. Vetting bonus incentive scheme (VBIS) launched to reward good performance during SIRE inspections. A revamped version of Vessel concise guide to SIRE inspections launched to provide unified reference document for structured preparation for SIRE inspections. Maersk Tankers continued to contribute towards Best Management Practices for protection against Somalia based piracy (BMP) publication.

8 Page 14 Page 15 Health, Safety and Quality Projects 2013 Vetting and Marine Operation Projects 2013 Title Description Actions Superintendent s vessel visit Package Unified Checklist for audits Risk Assessment Library Root cause analysis tool Safety Campaigns MLC Oil Spill Campaign * CR: Change request # VIMS: Vetting Inspection Management System) Superintendent to be actively involved in imparting training to ship staff during the visit to raise awareness and impart necessary practical education in a shipboard environment. Unified checklist to be develop to cover all aspects of MIRE, ISM, ISPS, ISO and MLC to avoid duplication A generic risk assessment library to be created from shore side for reference by the vessels for undertaking routine tasks. Root cause analysis tool to be improved to capture various issues that are raised from a drill down approach. Safety Campaigns to be run as part of the Safety Awareness week to increase awareness and engage the seafarers. MLC shall come in force in Aug Vessel audits need to be performed for verifying compliance An oil spill campaign to be run to reduce the number of contained oil spill incidents. Training department to prepare catalogue of training to be imparted during vessel visit. Where required Superintendent to be trained in the subject. CR* has been created for VIMS # software update to allow tagging of questions to generate different checklists from same source questionnaire Generic risk assessment library to be created from shore side and rolled to the vessels. Vessels to make it ship specific Root cause analysis tool to be re-developed within ShipNet and released for use by end 2012 for more detailed trending. Campaigns on matters such as Working at Height, safe manual handling to be run during the course of Safety Awareness week run every quarter. Superintendents to be trained in MLC audits. Checklist to be incorporated in ShipNet for performing audits. Run an oil spill campaign to raise awareness and preventive measures for oil spills. Title Description Actions Customer like analysis of data and trends from SIRE & PSC* inspections, TMSA reviews and Incidents. Best Practice Sharing VIMS & ShipNet VCR Customer visits and visibility * PSC: Port State Control To carry out exhaustive trending of data, as done by our customers to get an outside-in view of our performance To share best practices observed during internal audits The switch between VIMS and ShipNet to be turned on to have one mean of follow up. Vessel conditions report (VCR) module in ShipNet for at a glance view of vessel hull condition Increase visibility as a quality operator and seek feedback for improvement of the system. Templates to be created and handed over to GSC to carry out detailed analysis. Action plan on the analysis to be developed by Marine Standards. To generate visual templates for various locations on board and share best practices coming from industry and internal audits. Each observation to be raised during audits/inspections to be followed up either in ShipNet or VIMS to avoid duplication of efforts. VCR module to be rolled out in ShipNet as means of monitoring of ship s hull and deck condition on monthly basis. Once in a year visit to major customers vetting department to be made by Marine Standards. Participate in joint sales meetings, workshops, conferences arranged by Maersk Tankers or customers. Security Projects 2013 Title Description Actions CSO** Drill Module ISPS ## Audits CSO drill module for all vessels to be completed, where vessels can select scenario and initiate drill without CSO intervention ISPS internal and external audits to be closely monitored Procedure to be created in ShipNet. Internal audits - 2 or less observations per inspections. External Audit NIL observation ** CSO: Company Security officer om ## ISPS: International Ship and Port Facility Security

9 Page 16 Page 17 Savings in Total, Year-to-date October, Environmental Baseline Hull Cleaning 3600 mt FO mt CO 2 Reduce the excess consumption due to hull fouling by a combination of scheduled visual inspections and structured monitoring the vessels speed performance and taking action when required. Total Fuel Oil Savings = MT HFO Total Emission Savings = MT CO 2 VLCC SSS mt FO mt CO 2 Continuous Super Slow Steaming around 10% MCR (Max Continuous Rating) primarily in Ballast. Propeller Polish 2200 mt FO 7000 mt CO 2 Base Load reduction mt FO mt C0 2 Reduce the excess consumption due to Propeller fouling by a combination of scheduled cleaning intervals, visual inspections and a structured monitoring the vessels speed performance. Reduction of the normal power demand of running the vessel by monitoring the and daily comparing the base load to a temperature dependent model value. Fuel optimisation Working with innovation Innovation is a fundamental part of modern business. If you don t innovate, you stand still. In today s world, standing still means going backwards as others keep moving ahead. At Maersk Tankers, we are working together with the innovation department consisting of a team of Marine Engineers, Naval Architects, who work on outside the box ideas and projects of varied nature. A strong focus is energy efficiency, which goes hand in hand with improved environmental performance. "The chart shows the total savings on carbon emissions (CO 2 ) and Fuel Oil (FO) for some of the major 2012 projects." Non VLCC SSS 6500 mt FO mt CO 2 Primarily Non Continuous Super Slow Steaming around 10% MCR (Max Continuous Rating) primarily in Ballast, where vessels with Mechanical Engines perform SSS when possible using a 20hr/4hr split between SSS and ECO speed. Projects and savings YTD October 2012 Propeller Boss Cap Fin 270 mt FO 840 mt C0 2 CLO Cons 800 mt Others 2400 mt FO 7500 mt C0 2 Speed instructions mt FO mt CO 2 Installation of PBCF s on existing vessels to reduce the Main Propellers losses due to the Vortex effects. 5 vessels are presently fitted with PBCF and we expect more to be installed. Reduction of CLO consumption, by closely monitoring the specific CLO consumptions and comparing to model values. Advising Fleet groups and vessels on correct adjustments when necessary. Reduction of Fuel consumption on Boilers at sea. Improvements on the ME and AE SFOC (Specific Fuel Oil Consumption) Reduction of Inert gas consumption in Port. Reduction of Boiler fuel consumption on voyages with heated cargo. Reduction of speed by improving speed instructions, better voyage planning, Optimizing Slow speed performance (40 60 % MCR), Challenging Normal CP speeds.

10 Page 18 Page 19 Environment and CSR CRW TO ENV & CSR HSSQ & VET Where we are aiming in 2013 It is recognized that a strategic approach to Environment and CSR, with a long-term perspective, can have a positive effect on our bottom-line, help us maintain our good image and strong customer base which should increase our top line. In working more strategically and formalized with CSR, we can get a competitive edge in attracting new business opportunities. Raise internal Environment and Climate Change (E&CC) awareness through communicating initiatives and performance, awareness & specific training programmes. A Ship Energy Efficiency Management Plan (SEEMP) has been developed for all Maersk Tankers vessels to be in compliance with IMO requirements. Each SEEMP is unique and specific for each vessel. The plan contains all measures taken to improve energy performance of the vessel. The plans has been incorporated into VPMS which is already used to monitor and improve the energy performance of the fleet. Key Actions and Success in 2012 Total CO 2 reduction of 10.9% from a 2010 baseline based on optimisation projects. KPI s defined and integrated for commercial and operational desks to measure CO 2 efficiency; Energy Efficiency Operational Index Introduced new KPI (EEOI) and reporting format for the Handytankers pool partners. Submitted the first Carbon Pact Report for signed-up customer Statoil. ELearning course on Environmental Management and Compliance has been rolled out. Developed tariff cards for the NEU region as a measure to reduce the cost of landing waste. Rolled out the Responsible Procurement Program to selected vendors and business partners. A structured report on facilitation payment is in place to further strengthen our commitment in tackling bribery issues. EEOI: Energy Efficiency Operational Index EEOI = g CO2 / tonnes cargo* km Energy Efficiency of our assets to reduce environmental impacts through improvements on vessels to meet our Climate Change (CC) target. Measures to prevent spills and increase Marpol Awareness Reducing Environmental Impacts through improved chemical/waste management Utilize the facilitation payment insights from 2012 to create joint initiatives to reduce their demand in 2013 Increase the scope of vendors and business partners to be included in the Responsible Procurement program Increase employee engagement and encourage sustainable thinking within MT by arranging periodic visits to the Non-Governmental Organisation (NGO). We will do this by: Engaging proactively with clients and other external stakeholders communicating our initiatives, performance and value proposition and by communicating positions concerning critical environmental and climate change issues Achieved the target of 5% reduction in average waste per day and increasing % waste landed at green ports by 5% ahead of time. Developed by IMO (International Maritime Organisation) as indicator of energy efficiency of a ship in operation Engage in setting industry Environmental standards that will improve the performance of tanker operations

11 Page 20 Page 21 Environment Projects 2013 Title Description Actions and target Title Description Actions and target Reduce air emissions Plan use of energy, technology and transport to achieve maximum benefit for minimum expenditure of resources. Minimise oil pollution risks Reduce oily water discharge from daily vessel operation Enhance ballast water management. Reduce environmental impact of waste disposal Chemical Management Reduce CO 2 exhaust emissions per cargo unit x nautical mile by 15% by 31st December 2015 from 2007 levels. Work with Technical and MMT to highlight Energy Efficient Assets SOx Continuously reduce environmental impacts of tanker vessel operation. Zero incidents which have impact on sea or land from fuel, oil transfer and operation of equipment. Ensure Environmental Compliance Training is Complete Shore side and Offshore. Evaluate ballast treatment technologies on tanker vessels. We want to reduce costs associated with waste disposal, and engage with these to develop best practice sharing and standard operating procedures between local and global units. Reduce environmental impacts from chemicals Support and Drive optimization projects in the following areas. Mapping current initiatives and approaches Developing a "green vision" for our assets Cargo Heating Load and discharge operations Implement KPI s on Energy Efficiency for Technical, Commercial and Operational Desks. Set up best practice guidelines for use of Incinerators based on Safety and Environmental guidelines Investigate possibilities in exhaust gas recirculation and scrubber technology through the Marine Fuel Forum Ensure Quarterly trending of all MARPOL Impacts to ensure we target areas for improvement Liaise with Operational Desk to ensure we manage vessels as effectively as possible Initiate MARPOL awareness campaign focusing on minor spills. E Learning Course to be completed by all crew on board, focusing on Environmental Compliance and the on-board role of the Environmental Officer on the Safety Management Team. Ensure all vessels have anti Fouling Management Plans Update guidelines on voluntary zero dumping procedure in ShipNet Investigate the link between costs of landings and green ports and prepare proposal for cost reduction of landings. Prepare tariff cards for European and Asian ports Map the possibilities of establishing a system that monitors our chemical consumption on vessel specific basis, both in order to improve working environment and environment in terms of substitution, but also to identify possibilities of cost optimization in terms of identification of points of over consumption. Environmental reporting & industry standardization CSR Projects 2013 Verification Audit of our Environmental Reporting Process Ensure proper and credible environmental benchmarking for tanker vessels. TC in and Pool CO 2 emissions Independent verification of our Environmental Reporting System Title Description Actions and target Group Standards Anti-Corruption Programme Communication Human Rights Responsible Procurement Focus on local content engagement in areas where employees or cadets are from. Basis the UN Global Compact and other legislative requirements, Maersk Tankers must ensure all applicable programs are implemented. Reducing the financial impacts of facilitation payments. To ensure we highlight our focus on Sustainability to the top customers who have similar approach. Implement the Human Rights Programme in Maersk Tankers Invite business partners and vendors to enroll in the program Solicit inputs from our employees on potential CSR projects in their local areas through the Officer's seminars. Work within Industry to ensure a methodology for environmental benchmarking is in place and available. Map of Pool Partner/TC in vessels to ensure commercial desks can view potential vessels from an Energy Efficiency point. Ensure that all Group Standards and Programs are implemented in Maersk Tankers in a timely and appropriate level. Such as Human Rights Policy and more local engagement. Refocus on the Facilitation Payment Program to ensure that our current processes are well implemented and understood. Communicate to relevant stakeholders on our current sustainability performance and future initiatives Develop an sustainability communication strategy and communication plan With Group and other BU s ensure that the Human Rights Programme is implemented. Planning audits of 3 Shipowners and 2 Repair Yards, 2 major manufactures - Understand Maersk Tankers potentials for engagement in Local Content projects -Build in Local Content sessions as part of Office Seminars held in developing countries -Outline project and potentials based on suggestions from employees 21

12 Page 22 Page 23 Key Actions and Success in 2012: Identification of tasks to offshore and recruitment and training of GSC staffs were put in place as of end of July. Briefing and debriefing costs have been reduced through implementation of online communication solution between hub places and local place of seafarers. Execution of crew change in cost efficient ports has been started since end of January and continuously maintains across different Crewing teams to save cost. Improving the communication as well as quality service to our customers, other business units and employees, by developing the MT Crewing website, Training web application - Competency Manager for Enhanced Training (COMET), and Seafarers Portal. The MT Crewing website went live on 30th March with useful contents to all stakeholders for better visibility of organization s activities; Furthermore, COMET serves as a platform for seafarers where they can facilitate all their training activities such as identifying training records, etc. Seafarers Portal was initiated to improve the communication with seafarers by further utilizing the website as communication medium where they can access all management communication and strategies. Managing an attrition rate of 6% and an on time relieve of 98% (+/- 30 days) regarding attrition rate and On-Time relieve Crewing Projects 2013 Crewing Title Description Actions and target CRW TO ENV & CSR HSSQ & VET Operational Efficiency Implement MTBS Processes to be improved include the budgeting process and the training administration processes by further enhancing our COMET system. Simplification of Budgeting process Further development of training web application Development of manning offices as regional centers Improved communication Empowerment of manning offices The goal is to empower the manning offices and to develop them as regional centers. Develop communication with new hires Junior officers. Employee Engagement Further development of communication By executing more initiatives and enhance the current portals rolled out in Crew Quality Customer Satisfaction - Benchmark training activities with peers - Enhance soft skills through leadership courses and the personal Appraisals - Ensure compliance more actively with Maritime Labour Convention (MLC) - Zero rejections due to experience matrix In 2013, we will benchmark our training activities with our peers to give us the ability to assess how we stand compared to our peers, and thereby further improve training plans and processes. Crewing will ensure that we meet all the requirements when MLC comes into effect in Where we re aiming in 2013 Maersk Tankers Crewing vision is to be the leading crewing service provider in the segment that we operate in through the creation of a more customer-focused organization as well as the reduction of cost. Building on our success in 2012, Crewing aim to achieve greater success in 2013 in the following aspects: Operational Efficiency: Continuously review and streamline processes Cost Efficiency: Be conscientious in our cost management and constantly identify opportunities for savings Employee Engagement: Constantly engage our colleagues, understand their needs and support one another Crew Quality: Continuously review and improve the quality of our seafarers Customer Satisfaction: Consistently strive to understand the needs of our customers and meet their expectations In order to execute an promotion to Master or Chief Engineer, a candidate must have minimum two recommendations with approval from both the technical, nautical, crewing department and the Head of MTTO, all according to our Promotion Approval Plan.

13 Page 24 Page 25 Technical Operation CRW TO HSSQ & VET Where we re aiming in will be another year for Maersk Tankers Technical operation team to ensure smooth vessel management and operational efficiency. This we will do by maintaining focus on the areas of responsibility from 2012 as well as keep focus on: Purchasing Logistics Maersk Tankers will assume responsibility for the freight budgets, KPI s to be developed for benchmarking purposes. This to ensure further optimization of deliveries to most optimal ports. ENV & CSR Best Practice Sharing across the fleets Enhance focus on timely close outs of CAPS (Corrective Action Process) Completion of all MIRE (Maersk Inspection Report Program) Inspections on time and updates to system within less than 3 days Development of leading Key Index (KPI s) for Technical Department Continued development of P200 initiatives and continued follow-up with vessels. Vendor rating of onboard received orders with amongst other KPI s packing material, product quality etc. LMS training of all buying personnel with regards to company standards within the area of Responsible Procurement. Technical Operation Projects 2013 Key Actions and Success in 2012 Technical Operation take the role and responsibility of informing and making of recommendations for Maersk tankers Management team, concerning abnormal deviations to budgets, vessel operations etc. which may be required for safe operations or as requested by managers. Throughout 2012, we have maintained focus on the below areas: At all times ensure that the vessel is maintained in line with Maersk Tankers sustainability and commercial goals Work with ship managers to manage vessels in the best way possible, both efficiently and economically. Ensure standard of maintenance onboard is understood and implemented by managers Share knowledge, ideas and advice as found necessary with ship managers Visit and inspect vessels at regular intervals Greater focus on Low Value Orders to ensure better consolidation, thereby reducing transport, packaging and administration P200 Best Practice onboard requisition handling including consolidation, optimal delivery points, RACI model (defining roles and responsibilities) providing timely delivery of spares needed for onboard maintenance of equipment. Establishing Pembroke hub to reduce number of truck deliveries from central Rotterdam warehouse. Measurement tools on ordering habits created and shared with each vessel. Title Description Actions and target Retrofit Fuel efficiency Daily Running Cost (DRC) Vessel Specific Dashboard Freight Cost Research shows saving can be up to 7% for VLCCs. End 2012 pilot has been planned if the results confirm the study, we will look at retrofitting large parts of our entire fleet, starting with our VLCCs. Improve our own and TC fleet performance both at sea and in ports through focus on speed instructions, base load, hull cleanings, boiler consumption at sea, port consumptions, etc. Continue focus on DRC that assures quality standards Develop Dashboard and work with vessels to continue improvements Further optimize deliveries to most optimal ports. Testing and if positive retrofitting part of VLCC fleet throughout 2013 Continue with fuel efficiency focus in technical, operational and commercial areas Maintain focus on DRC Maintain focus on ordering habits Purchasing Logistics to take over responsibility for freight budget

14 Page 26 Page 27 Car Carriers Where we are aiming in 2013 During the year 2013, Maersk Tankers will operationally and technically manage 9 PCTC for Hoegh Auto liners. As across the board the car carriers are applied and managed to same standards of safety and quality that of the tanker industry. Furthermore, KPI s for the car carriers vessels as well as the fleet group are similar to the tanker vessels. Key Actions and Success in 2012 During 2012, we elongated 3W class PCTC (Pure car and Truck Carried) cargo spaces, thereby increasing the cargo capacity without increase in emission, but with a drop in speed. Some of the car carriers key actions in 2012 as well as top performances are highlighted in the below: Three DSME class vessels elongated by 20 meters (179.9mtrs to 199.1mtrs) Increased cargo capacity (standard car units) by about 20% (from 4303 to 5208) One year LTI (Lost Time Injuries) free in Total 55 inspections by Port State Control with only 20 observations in 2012.

15 Group core values CONSTANT CARE Take care of today, actively prepare for tomorrow HUMBLENESS Listen, learn, share, give space to others UPRIGHTNESS Our word is our bond OUR EMPLOYEES The right environment for the right people OUR NAME The sum of our values, passionately striving higher