Thriving Environment

Sustainable Development
Thriving Environment

Thriving Environment

“Succeeding in this large-scale vessel recycling project for SPO and CNCo will require a complete paradigm shift in the industry and strong ongoing management support. SPO believes that leading by example, working with the best ship recycling facilities in Alang, and showing what can be achieved by taking positive and proactive actions, it will be able to convince another ship owners that they can (and should) also act responsibly and sustainably."

- Simon Bennett, General Manager, Sustainable Development

SPO is committed to limiting our environmental impact and radically de-carbonising our operations. We wish to excel as a responsible corporate citizen by striving to be a good steward of the natural resources and biodiversity under our influence. We also seek to ensure that all potential adverse impacts of our operations on the environment are identified and appropriately managed.

SPO is strongly committed to decarbonisation and has been implementing various initiatives in order to reduce its Scope 1 and 2 carbon footprint (i.e. the emissions from our business operations). We are seeking emissions reduction through better vessel design and operations, reducing electricity consumption and minimising carbon footprint from flights.

In 2010, SPO invested in a REDD+ (Reducing Emissions from avoided Deforestation and Forest Degradation) forest conservation project in Paraguay which allows the company to generate carbon credits to offset the CO2 emissions from our operations. The project mitigates climate change through the conservation of highly threatened forests, and delivers multiple benefits, such as supporting social areas by enhancing livelihood potential, maintaining vital ecosystem services and preserving globally significant biodiversity. This project also plays a vital role in preserving the rich wildlife in Paraguay that is dependent on the forest as its habitat.

As of 1st January 2011, SPO is carbon neutral through voluntarily offsetting our Scope 1 and 2 carbon emissions. For more information on this project, please refer to the Environment section of our annual Sustainable Development Reports.

SPO’s REDD+ project with Guyra Paraguay.

Farmers who are beneficiaries of the Forest Conservation Project.

General Manager, Sustainable Development, Simon Bennett with members of Guyra Paraguay.

SPO embarked on Project Hafnium – H₂ Production, Storage, and Power for Offshore Supply Vessels, which aims to prove the viability of radical decarbonisation through the use of H₂-based Fuel. SPO is leading a consortium with Nanyang Technological University’s Maritime Energy and Sustainable Development Centre of Excellence (MESD CoE) with other knowledge partners.

A feasibility study was conducted in 2019 to provide insights on the technical and financial feasibility of hydrogen as fuel for the Platform Supply Vessels in SPO's fleet. To read the summary report, click here.

SPO’s Sustainable Ship Recycling policy states that all vessels at the end of their working lives will be sent for recycling to facilities that, as a minimum, adhere (even prior to its full ratification) to the Hong Kong International Convention for the safe and environmentally sound recycling of ships (HKC) that was adopted on 15 May 2009; and that, are certified by a reputable independent third party to ISO 9001:2015, ISO 14001:2015, OHSAS 18001:1999 and preferably, ISO 30000: 2009.

This policy ensures that SPO recycles its assets in the best way – sustainably, safely, and in an environmentally responsible manner. SPO has been working with the management of selected Ship Recycling Facilities in Alang, India, on improving their health and safety standards as well as environmental compliance. Through this project, SPO recycles our vessels at a green premium and brings to life Swire’s strong commitment in adopting a long term view in its businesses. To view the SSR video, click here.

The Pacific Bear, was the first vessel in SPO’s fleet that was sustainably recycled at the JRD Industries’ Ship Recycling Facility (SRF) in Alang, India on 4 October 2017. This SRF is one of the four ClassNK HKC-compliant SRFs) SPO has also been working closely with industry partners to heighten awareness of the importance of recycling vessels in a sustainable manner, boost investors’ confidence in the prospects of ship recycling facilities as well as improve the health and safety standards and labour conditions of the ship recycling facilities in Alang.

Crew of Pacific Bear bidding the vessel farewell before she gets recycled in Alang.

Read more about the mitigated environmental impacts and health, safety and social impacts of Sustainable Ship Recycling here.