Safeguarding our people and minimizing our impact on the environment
SUSTAINABILITYKCC 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.
We are future bound!
Our pathway to net zero by 2050
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A more sustainable alternative
Our combination carriers trade in dedicated trade patterns with consecutive switches between dry and wet cargo shipments and minimum ballast between the laden voyages. Hence, the fleet emits up to 40% less greenhouse gases than standard dry bulk and tanker vessels for the same transport work.
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Cost-effective decarbonization
Our strategy is that KCC shall provide the lowest carbon emission freight at the lowest cost to our customers within the caustic soda and clean petroleum trades and create a flexible and credible path to zero emission freight within these businesses.
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Performance now
KCC continued to make good headway on its decarbonization targets during 2023. The carbon intensity (EEOI) for the fleet was down from 6.9 in 2022 to 6.5 in 2023. The result is better than the target for 2023 and on track with KCC’s decarbonization strategy to reduce the fleet EEOI down to 5.3 in 2026.
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Ambition 2026
We aim at delivering a 30% improvement in carbon intensity (EEOI) compared to 2018 through optimizing trading efficiency, perfecting voyage efficiency, and improving energy efficiency.
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Ambition 2030
We aim at delivering a 45 % improvement in carbon intensity (EEOI) compared to 2018 through using new fuels, fleet renewal and efficiency improvements.
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Ambition 2050
We are committed to reach to net-zero emissions in all operations by 2050.
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Beyond decarbonization
We aim at delivering additional positive environment outcomes through vessel recycling, waste minimization, and air quality improvements.
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Further reading
For further reading, please see:
ESG Strategy
Environmental Social, and Governance
KCC’s main priority is the crew’s health and safety and we are resolute that the success of our company depends on achieving the highest safety standards in all operations.
As shipping is our business, decarbonization is a centerpiece of our ESG strategy. Our updated Environmental Strategy presented in March 2023 reconfirms our commitment to deliver large carbon reductions over the coming years, with ambitious but realistic targets for the period 2023-2030. The targets are primarily based on profitable efficiency improvements throughout the commercial and technical operations of our fleet.
Environmental
Delivering cost-effective decarbonization
Shipping is our business and we are committed to being a driver in the transition towards a low carbon industry through improving the efficiency of our fleet and operations. This means applying new technical solutions and fuels, and through close co-operation with customers, suppliers and other shipowners.
Over the coming years, we plan to further improve this by harvesting untapped efficiency improvement potential across KCC’s business. In parallel, we are actively preparing for the utilization of new low- and zero-carbon fuels.
Social
Always safe and secure
Our goal is that no one should be injured while working for Klaveness. We believe operational accidents are preventable, and every day we work to strengthen our safety culture and performance.
Our 2024 double materiality assessment confirmed that safeguarding people and minimizing environmental impact are areas where we create long-term value. As a global shipping company, we must navigate risks such as geopolitical tensions, the complexities of the green transition and value chain labor conditions with care and accountability. For more, see our 2024 Annual Report (page 23).
Governance
Trusted and responsible partner
Strong governance and maintaining complete transparency with stakeholders is foundational to how we operate. We work to maintain high standards of accountability and transparency; anchored in our Compliance Program, Code of Conduct, and zero-tolerance approach to corruption.
Through regular training, risk-based screening of business partners, and a culture that encourages speaking up, we aim to ensure responsible business practices across our operations and value chain.
Materiality Matrix
The starting point for sustainability reporting is the double materiality assessment (DMA). KCC applies the principle of double materiality in determining how sustainability topics may constitute responsibilities or risks, enabling KCC to understand and report those topics where KCC has significant responsibility to mitigate potential negative impact on society or to the environment and where topics may pose significant risk to the business.
The different sustainability topics are ranked in terms of impact on the environment and people (inside-out approach) and financial materiality, which is the outside world’s impact on the company’s value creation (outside-in approach).
Stakeholders
It is important for KCC to be transparent and build trust with its stakeholders. Continuous learning and improvement are key for us, hence having an open dialogue with the main stakeholders is fundamental. Main stakeholder groups for KCC are customers, crew, employees, equity investors, debt providers, regulators and suppliers.
KCC’s stakeholders are particularly concerned about health and safety, climate change, anti-corruption, ship recycling, labor and human rights, diversity, and business ethics.