In our continuing EU Excellence in India programme blog series, Capt. Prashant S. Widge, Head of Responsible Ship Recycling, Fleet Technology, A.P. Moller – MAERSK writes for us on how the company is leading the way globally in sustainable ship recycling. Here, Capt. Widge explains how a robust, responsible and transparent ship recycling programme at A.P. Moller – MAERSK has helped it become a pioneer in sustainably recycled end-of-life vessels in India. Learn more on what makes A.P. Moller – MAERSK a EU Business Champion in India.
In the absence of a global mandatory regulatory framework, independent of geography or method, Maersk developed and implemented its own Responsible Ship Recycling Standard (RSRS). The RSRS on several aspects goes beyond the Hong Kong Convention adopted by International Maritime Organisation – it does not allow contact in the intertidal zone with blocks from primary cutting and includes relevant international standards on labour and human rights, anti-corruption and social issues as well as downstream waste management.
Roughly 90% of the global trade is facilitated by vessels sailing over the oceans. While transporting goods from manufacturers on one side of the world to the consumers on the other side of the world, these vessels are subject to extreme weather conditions throughout their 20-25 years of life span.
These vessels, therefore, need to be built to a range of requirements on flexibility and durability that would ensure their ability to face extreme weather conditions. Steel provides these mechanical properties and meets the demand for a cost-efficient raw material that is linked with the principles of a circular economy.
According to the recent Sustainable Shipping Initiative report “Exploring shipping´s transition to a circular industry”, steel recycling contributes to a three- and six-fold reduction in energy use and CO2 emissions, and presents an opportunity for increased circularity. The inherent steel scrap demand, minimal last-mile costs, comparable quality recycling with other parts of the world and ability to offer higher scrap steel prices drives India to hold around one-third of the global recycling market share.
In the absence of a global mandatory regulatory framework, independent of geography or method, Maersk developed and implemented its own Responsible Ship Recycling Standard (RSRS). The RSRS on several aspects goes beyond the Hong Kong Convention adopted by International Maritime Organisation – it does not allow contact in the intertidal zone with blocks from primary cutting and includes relevant international standards on labour and human rights, anti-corruption and social issues as well as downstream waste management.
Over the past five years, Maersk has not only implemented the RSRS at the 6 yards in Alang, while responsibly recycling 14 vessels, but it has also ensured that this has been done with no serious safety or environmental incidents and incentivised the building of over 1200-worker ILO-compliant dormitories. It was key to verify that the engaged workers earned the requisite minimum and overtime wages with insurance and retiral benefits, access to compensation, leave and holiday benefits, in line with the applicable legislation.
With ship recycling gaining prominence in the global ESG rating agenda and heightened focus of investors and cargo-owners, as a United Nations Global Compact member, Maersk remains committed to conducting business in an ethical, legal, and socially responsible manner. Maersk is a founding member of The Ship Recycling Transparency Initiative, which aims to accelerate a voluntary market-driven approach to responsible ship recycling practices through transparency; and subsequently to influence and improve decision-making about ship recycling, creating an industry-wide level playing field. Maersk’s overall programme objectives, approach and key targets align well with India’s vision of being Atmanirbhar (self-reliant) and becoming a global leader in ship recycling of all vessels from around the world, including the EU-flagged ones too.
