Maersk Tankers Sustainability Update Sustainability is everybody s business making a difference
Sustainability is everybody s business making a difference In Maersk Tankers we say that sustainability is everybody s business because sustainability relates to all employees at sea and on shore, to our customers, pool partners, suppliers and other stakeholders. In, we presented our three sustainability priorities: Safety First, Environmental Efficiency and Responsible Business. This year, we report on our performance on these three priorities, we focus on the difference it makes, and invite our stakeholders to make the difference even bigger. In, we launched our new strategy, Taking Lead, with three priorities: Cost Leadership, Active Position Taking and 3rd Party Services. We believe that there are both synergies and potential conflicts between Taking Lead and our sustainability priorities. We will exploit synergies we are convinced that continuous focus on establishing a strong safety culture will help us reduce cost and that our fuel-optimization expertise will strengthen Cost Leadership and support our value proposition. We will pay close attention to potential conflicts: Cost Leadership must e.g. not compromise safety. I hope that this folder provides a good overview of our sustainability priorities, performance and plans and that you will take part in making an even greater positive difference to people, environment and our business. Best wishes Morten H. Engelstoft, CEO, Maersk Tankers SUSTAI NABILITY PRIORITIES 1. Safety First We ensure the safety of crew, vessels, cargo and the environment and we want to be known for impeccable safety performance driven by our crews and recognized by our customers. 2. Environmental Efficiency We reduce the environmental impact of our operations by minimising CO2 and other harmful emissions and at the same time we reduce our costs. 3. Responsible Business We uphold our values and protect our name. Responsible Business relates to fighting corruption, responsible procurement, environmental compliance, respect for human and labour rights, and security. Underlying these priorities is our full commitment to live the Maersk Group Values and to comply with Maersk Group Policies.
Update on our sustainability priorities Safety First ACTIVITIES was a safe year for Maersk Tankers fleet. We reduced our LTIF 36% and our safety management system has been reviewed by customers and class societies with good results. We experienced seven LTIs during including one potentially fatal accident involving a loose handle hitting a Chief Officer s head while not wearing a hard hat. The remaining 6 incidents all involved injuries to hands, arms and feet. Lack of safety awareness is the most common cause of these accidents. has also given us challenges. We have reduced the fleet, which has led to insecurity among seafarers. Reassuringly, our strong safety performance during indicates that the safety culture remains at a high level. We plan to develop better and leading indicators that will help us to prevent accidents on-board our vessels. During, we experienced two minor oil spills. ECDIS Roll-out (32 vessels completed) Reducing hydraulic oil leaks Reducing hand injuries VLCC Safety ACHIEVEMENTS 36% reduction in LTIF Personal injuries in Finger cut while removing floor deck plate Head hit by falling handle Elbow dislocated due to trip and fall Personal injuries per 1m exposure hours 1,38 1,07 1,03 LTIF 0,79 1,12 Industry benchmark 0,64 1,15 1,07 LTIF: 0.41 FOCUS AREAS 0,41 Finger caught in door Foot caught in pipe and ankle twisted Foot hit by hydro blaster Foot hit by heavy object 2009 2010 2011 2012 Note: Maersk Tankers safety performance has improved steadily and is strong compared to the Intertanko industry benchmark. Safety culture Improved unsafe indicators ECDIS roll out Conduct FSS seminar Safe navigation Campaign WHAT DIFFERENCE DOES IT MAKE? MAKING THE DIFFERENCE BIGGER On average, with current safety performance, there will be 1 LTI every 12 years on a Maersk Tankers vessel. On average, there will be 40 years between oil spills on a Maersk Tanker vessel. Follow procedures. Training and awareness to safety. Use your stop-work authority.
Environmental Efficiency ACTIVITIES Port consumption Cargo heating In spite of efficiency improvement in all segments our over-all efficiency indicator, measuring the reduction in carbon emissions compared to 2010, has worsened from 19.7 to 18.2 because of the handover of the strong performing VLCC fleet during. During, we have been busy reducing vessels consumption of bunker for pum-ping cargo and electricity generation during port stays. Through benchmarking against mathematical modelling of energy consumption during a port call we have been able to reduce the cost of one port call by 433 USD. Towards the end of, improved market conditions and reduced oil prices have created a pressure to increase speed. This had no significant impact on our carbon emissions in but is likely to have in. In, we aim to shave an additional 5 mio USD off our bunker bill compared to which will reduce carbon emissions with 26,000 tonnes. Our main focus areas will be voyage execution and in-port consumption. ECO Voyage Tracker and Voyage Break Down Tools ACHIEVEMENTS USD 74.6m savings, compared to a 2010 baseline 18.2% reduction of CO2 compared to 2010 FOCUS AREAS Voyage execution Bunker discrepancy Port consumption WHAT DIFFERENCE DOES IT MAKE? MAKING THE DIFFERENCE BIGGER We avoided 410,000 tonnes of CO2-emissions from Maersk Tankers overall fleet during. We have saved 74.6 mio USD on the bunker bill for Maersk Tankers (compared to a 2010 baseline). Fix and execute voyages at optimal speed with lowest possible bunker consumption. Reduce bunker consumption during port operations. Switch off any machine that doesn t need to run. Join a Maersk Tankers Pool. Reduce ballast voyages by collaborating with Maersk Tankers on better triangulation.
Responsible Business We more than halved facilitation payments per vessel per month from to, but we have also seen that the declining trend has flattened during the last half of. In, Maersk Tankers was mentioned in the media in relation to a Brazilian corruption investigation. Maersk has cooperated with Brazilian authorities in the matter, and we have found no indication that Maersk has engaged in any improper activity. Maritime crime remains a significant threat. Maersk Tankers continuously strengthens piracy preparedness through collaboration with intelligence providers, hardening of vessels as well as use of gun-boats and armed guards. We are measuring the awareness and readiness of our seafarers through inspections. The average number of observations per inspection was 0.76 against a target of 1. ACTIVITIES Upgrading security Inspection of Sungdong shipyard Upgrade of Maritime War Risk preparedness ACHIEVEMENTS During, Maersk Tankers received po sitive feedback from authorities, customers and auditors inspecting our environmental and safety management system. On one occasion we have had to dismiss the senior officers on one vessel due to tampering with pollution measurement equipment. Maersk Tankers has enrolled the Sungdong shipyard in South Korea in the Maersk Responsible Procurement programme. During, we have met most of our targets for on-time relief and matrix compliance but faced a moderate increase in attrition rate. Maersk Tankers complies fully with the Maritime Labour Convention. Our employee engagement index slightly fell from 74% to 73% from to. During, we will focus more on reducing attrition rate and increase in internal promotions (as opposed to external recruitment). Facillitation payments 120 100 80 60 40 20 0 2012 Average monthly vessel facilitation payments corrected for fleet size (Index, April 2012=100). 55% reduction of facilitation payments 99% on time relief rate 0.76 observations per vessel during security inspections FOCUS AREAS WHAT DIFFERENCE DOES IT MAKE? We more than halved facilitation payments per vessel per month from to. MAKING THE DIFFERENCE BIGGER Say No. Make sure you have precise anti-corruption clauses in your Charter Parties. Join industry collaboration in the Maritime Anti- Corruption Network. Facilitation payments Oil spills campaign Compliance with Ballast water and SECA regulation Compliance with NOx regulation
Pools and customers While Maersk Tankers owns 85 vessels (as per 31 December ) we trade a fleet of approximately 160 vessels in the Brostrom, Handy tankers and MR Pools. We offer customers better optimization through close collaboration on triangulation and ballast voyage reduction. We can offer vessel owners the best in terms of fuel optimization technology. We invite cargo-owners to take a stand against corruption together with us. We can offer Zero facilitation payments voyages in return for a risk sharing agreement with the customers. We encourage customers to take part in industry collaboration against corruption in the Maritime Anti-Corruption Network (MACN). WHAT DIFFERENCE DOES IT MAKE? Maersk Tankers works with pool partners to reduce bunker consumption. For an average MR vessel we aim to reduce consumption by 110 ton from 15. Our plans for Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Safety SAW* ECDIS roll out Group safety day Process safety indicators HSEQ Campaign Safety navigation campaign Environmental efficiency Continuous focus on voyage execution, bunker discrepancy and port consumption Anti-corruption Zero tolerance for OECD countries Vessel based training Improve recruting process e-recruitment Process Personal touch Disembarkation process - Retention drives - Office visits - Seminars - News letter Improve quality of cooks Audit of training institute Follow up visit Full BMP 4 implementation Gangway security Security awareness training (Ship Secuirty Advisors) Completion of BMP4 implementation * Safety Awareness Week
Performance We have ambitious targets and monitor our performance on all important issues. CO2 emissions (Compared to 2010) Bunker dollar savings CO2 savings 18.2% reduction achieved since 2010 20% reduction target for 2020 USD 74.6M 3 TONS ~100% reduction Compared to a 2010 baseline CO2 saved per port call Facilitation payments On time relief Employee Engagement Index USD 152 USD 70 Per vessel per month. 95% 99% 97% 72% 74% 73% 76% 2012 2012 Number of overboard oil spills Actual Target Security Maersk Tankers Maersk Tankers 2 0 2012 0.73 1.0 2.0 2.0 On average, a Maersk Tanker has 40 years between oil spills. Average number of non-conformities and observations in security inspections. Lost time injury frequency (LTIF) Actual Target LTI experience 0.79 2012 LTI/million working hours 0.64 0.41 0.65 12 YEARS On average, there will be 1 LTI every 12 years on a Maersk Tankers vessel.
About Maersk Tankers Maersk Tankers owns and operates a large fleet of product tankers. We acquired our first dedicated tanker in 1928. Through the Maersk Group, Maersk Tankers is signatory to UN Global Compact. Maersk Tankers is a member of the Maritime Anti-Corruption Network (MACN) See more at www.maersktankers.com Sustainability contact: anders.holbech@maersktankers.com
Sustainability is everybody s business making a difference SAFETY OIL SPILLS EFFICIENCY ANTI-CORRUPTION PERFORMANCE During, there were 7 Lost Time Injuries onboard Maersk Tankers vessels. This compares to an LTIF of 0.41, which is less than half of industry average. PERFORMANCE 2 Minor oil spills overboard in 0 Significant spills PERFORMANCE 18.2% reduction of CO2 emissions compared to a 2010 baseline. THE DIFFERENCE IT MAKES On average, a Maersk Tankers vessel has an oil spill over board once every 40 years. This includes small oil spills that with very low impact on the environment. THE DIFFERENCE IT MAKES 74.6 mio USD for all Maersk Tankers vessels (compared to a 2010 baseline). PERFORMANCE We have successfully communicated and trained our people throughout the year on how to avoid facilitation payments. THE DIFFERENCE IT MAKES On average, there will be 1 LTI every 12 years on a Maersk Tankers vessel. With current safety performance only 1 in 12 Maersk Tankers seafarers will ever experience an LTI during a 40 years career in Maersk Tankers. 410,000 tonnes of CO2-reduction for Maersk Tankers overall fleet. THE DIFFERENCE IT MAKES We more than halved facilitation payments per vessel per month from to. This is equivalent to taking approximately 150,000 family sized cars of the street. MAERSK TANKERS 3.6m 13 13 12 13 12 12 11 11 11 10 10 10 9 9 9 8 8 7 7 6 6 5 5 4 4 Help us make a bigger difference STOP Anti-Corruption 12kn Use your stop-work authority. Follow procedures. Make sure that terminal equipment is up to date. Fix and execute voyages at optimal speed with lowest possible bunker consumption. Reduce ballast voyages by choosing the nearest vessels and collaborating with Maersk Tankers on better triangulation. Join the industry in Maritime Anti-Corruption Network. Make sure you have p recise anti-corruption c lauses in your CPs.