What good ESG looks
like to us
ESG PRIORITIESKCC is committed to building its business on the highest Environment, Social and Governance (ESG) standards and to implement these standards into how we work and relate to our stakeholders. A best-in-class safety culture that safeguards our people and minimizes our impact on climate and the environment is at the heart of everything we do, as we strive to make a positive contribution to society by improving the nature of shipping.
ESG at a Glance
Environmental
Delivering cost-effective decarbonization
KCC’s ambition is to deliver cost-effective decarbonization to our customers. Decarbonization of the shipping industry represents both risks and opportunities for KCC, with building a strong competitive advantage likely become even more important when new emission regulations are implemented.
KCC has a positive impact on decarbonization of deep-sea shipping through operating combination carriers that are the most carbon efficient deep-sea transportation solution in the dry bulk and tanker space existing today. The combination carriers represent 30-40% lower carbon emissions per ton cargo transported compared with standard vessels with similar trade patterns. KCC’s strategy is to harvest the still untapped potential of efficiency improvements in every part of the business (energy, trading, and voyage efficiency) with a focus of further improving the carbon intensity (EEOI*) of our fleet. We use EEOI to measure emissions intensity per unit of transport work as it factors in actual cargo carried and distance traveled, making it reflective of how efficiently a vessel moves goods and we believe this makes it the best metric for comparing vessel performance globally and measuring our improvement over time.
Targets
30% EEOI reduction by 2026**
45% EEOI reduction by 2030**
NET ZERO by 2050
ZERO environmental spills
*EEOI (Energy Efficiency Operational Index) is defined by the IMO and represents grams CO2 emitted per transported ton cargo per nautical mile for a period of time (both fuel consumption at sea and in port included).
**Relative to 2018 baseline.
For 2024 performance, see pages 29-43 of our 2024 Annual Report
Social
Always safe and secure
In KCC we are convinced that the success of our company is completely dependent on reaching the highest safety standards. Safety is priority number one for KCC and the goal is that no one shall be injured doing work for KCC. Shipping is a high-risk business and to maintain safe and reliable operations, KCC works with our ship manager to foster a strong safety culture every day.
We acknowledge there are inherent risks related to the working conditions for workers in the value chain and set clear expectations to our suppliers’, business partners’ and customers’ human rights and working condition standards.
Targets
<0.5 Lost Time Injury Frequency (LTIF)
ZERO injuries
ZERO vessel detentions
>90% Retention rate crew
RESPECT for Human and Labor Rights
For our 2024 performance, see pages 46-54 of our 2024 Annual Report.
Governance
Trusted and responsible partner
KCC promotes a culture of openness and transparency, and encourages whistleblowing regarding blameworthy activities or circumstances within its business. Compliance is the cornerstone of KCC’s business activities, and the organization continually works to build awareness around relevant legal requirements and internal policies.
We operate in a global environment with many international interactions across the value chain, resulting in elevated risks related to corruption and bribery. We are opposed to, and will contribute to counteract, all forms of corruption.
Targets
ZERO corruption cases
ZERO facilitation payments reported/avoided
FOCUS on cyber resilience and transparency
For our 2024 performance, see pages 58-61 of our 2024 Annual Report.