preparing for the future
Transcription
preparing for the future
PREPARING FOR THE FUTURE The A.P. Moller - Maersk Group’s Health, Safety, Security and Environment Report 2008 A.P. Moller - Maersk Group company profile The A.P. Moller - Maersk Group is a global conglomerate with approximately 120,000 employees with its headquarters in Copenhagen, Denmark and offices in more than 130 countries. Our revenue for 2008 was USD 61.2 billion, and profit before depreciation, amortisation and impairment losses (EBITDA) was USD 16.5 billion. The Group has activities in three main segments: • Transport – dealing with almost every aspect of container shipping: global transportation of containers using sea transport, planning of efficient transportation for customers, and running container terminals in harbours across the globe. • Energy – working in exploration and production of oil and gas. This segment also includes activities in the offshore service industry providing equipment, transport and other services to the oil and gas industry. The A.P. Moller - Maersk Group’s headquarters in Copenhagen, Denmark. • Industry – in which we have activities within both manufacturing and retail. An overview of the business units and the assets included in the reporting on Health, Safety, Security and Environment in 2008 can be found in “About this report” on page 4–6. Our impact and challenges The majority of our activities have significant environmental and safety impacts. We are sizeable participants in the industries in which we participate. Therefore, we have an obligation to contribute to sustainable solutions, wherever we can, as well as providing safe working conditions for those who as employees come under our care. Our main environmental challenges are: Energy consumption, air emissions, ballast water, discharges to water, waste handling and ship recycling. Plus the overall challenge of the effects of climate change. Our main health and safety challenges lie in the area of personal safety, process safety, employee health and working conditions. For security, our concerns are the growing risk of piracy and the security risks entailed in operating in hostile environments/countries. We operate within the following business segments: TRANSPORT • APM Terminals Container terminal activities • Container Inland Services Inland transportation, manufacturing and repair of containers and container depots • Maersk Line Global container ships operation • Maersk Logistics/Damco Supply chain management and freight forwarding services • Norfolkline Ferry services and door-to-door transportation in Northern Europe • Safmarine Shipping company operating globally • Svitzer Towing and salvage activities, emergency response and transport to offshore installations ENERGY INDUSTRY • Danbor • Dansk Supermarked Supply base for the oil and gas industry • Maersk Drilling* Offshore drilling activities around the world • Maersk FPSOs* Owns and operates mobile oil and gas production units • Maersk Oil Oil and gas production in Denmark, Qatar, Great Britain and Kazakhstan. Exploration activity in the North Sea, Algeria, Angola, Oman, Brazil and the American part of the Gulf of Mexico. • Maersk Supply Service Towing and installation of large offshore installations • Maersk Tankers Tanker shipping of crude oil, oil products and gas * Former Maersk Contractors Denmark’s largest retail conglomerate of which A.P. Moller - Maersk owns 67.68%. Has two department stores and six retail chains, operating in six European countries, under the main brands Netto, Bilka and Føtex. • Maersk Container Industry Makes reefer and dry cargo containers • Odense Steel Shipyard Designs and builds ships in Denmark and the Baltic States • Rosti Producer of plastic based products • Star Air Air cargo with a fleet of 12 aircraft This report does not cover the A.P. Moller - Maersk Group’s 37.5% ownership of Höegh Autoliners (car carrier) and 20% ownership interest in Danske Bank (banking). Contents A.P. MOLLER - MAERSK GROUP 1 2 4 10 Foreword: Addressing our challenges Highlights About the report Governance of health, safety, security and environment HEALTH & SAFETY 14 Improving safety and protecting our employees CASES 17 APM Terminals makes safety everyone’s business 19 Global health week SECURITY 22 Responding to security risks ENVIRONMENT 26 Pursuing environmental efficiency 27 Climate change on our agenda 28 Environmental performance 2008 CASES 31 33 36 37 38 Our partnership approach Maersk Oil: addressing climate change Innovation driving performance Optimising customers’ supply chain Green ship recycling: our policy 40 Global Reporting Initiative Consolidated HSSE accounts Forward looking statements The report contains forward looking statements regarding expectations for A.P. Møller - Mærsk A/S and the A.P. Moller - Maersk Group’s achievements and performance. Such statements are subject to risks and uncertainties as various factors, many of which are beyond A.P. Møller - Mærsk A/S and the A.P. Moller - Maersk Group’s control, may cause actual development and results to differ materially from expectations contained in the report. A.P. MOLLER - MAERSK GROUP Addressing our challenges Dear Reader It is a pleasure to present the A.P. Moller - Maersk Group’s consolidated report on health, safety, security and environment covering 2008. A year in which we launched a number of initiatives to accelerate our efforts and further support our commitment to sustainable development. Accelerating our efforts Our Health, Safety and Environment Report 2007 was our first annual non-financial report and captured our status at the time. Building on the baseline we established last year, the new report is based on increased amounts of data, and we are in the process of consolidating targets as well as enhancing our knowledge of emerging sustainability issues and stakeholder concerns. This will allow us to understand better our environmental and economic footprint and our social impacts, mitigate risks, and thereby take greater advantage of the resulting business opportunities. “In fact, improving our environmental performance remains one of our Group priorities in 2009.” Although we have been able to improve our safety performance in many of our business units, safety in the workplace continues to be a challenge. In 2007, we had 25 fatalities, and we still had 20 work-related fatalities in 2008. We deeply regret these tragedies, and by examining the root causes, we will continue to strengthen our work in order to prevent future incidents. An important tool in this effort is our Health, Safety, Security and Environment Manual, which we began implementing last year. In fact, improving our environmental performance remains one of our Group priorities in 2009. The environmental strategy is now being implemented in our business units and specific targets are being established and consolidated at group level. Finally, to provide further transparency and accountability to our stakeholders, we will participate in the Carbon Disclosure Project (CDP) starting 2009. Future reporting As a natural step in our progression, we intend to develop the current Health, Safety, Security and Environment Report into a sustainability report starting next year. This involves broadening the scope of reporting to include issues such as human rights and labour standards, responsible procurement and business conduct. Similarly, in March 2009, we joined the internationally acknowledged framework for sustainability, the UN Global Compact. By joining the Global Compact we wish to show our commitment and to take another step in adding structure to our sustainability work, while also documenting our progress in this area for our stakeholders. In summary, a conglomerate of our size and with such wideranging business activities has a significant impact on many people and communities across the world. Accordingly, we have an obligation to address a growing number of stakeholder expectations and we are taking significant steps to meet these. Nils S. Andersen Group CEO Moreover, to further support our efforts in this area and to anchor sustainability in our businesses, we established a Corporate Social Responsibility (CSR) unit at group level in the autumn of 2008. Environmental strategy Our environmental strategy was launched in 2008 following a detailed development process initiated in 2007. Our environmental strategic ambition is to go beyond compliance and pursue eco-efficiency in our daily operations, across all business units, and in the business opportunities we seek. Naturally, climate change is a concern for everybody – especially for A.P. Moller - Maersk as our main business areas are within transportation and energy production. We therefore support the upcoming climate conference in Copenhagen (COP15) in pursuing global solutions to the benefit of both climate and business. www.maersk.com 1 A.P. MOLLER - MAERSK GROUP Highlights Health Safety In 2008, we completed the A.P. Moller - Maersk Group Health Manual. The purpose of the manual is to secure minimum requirements for the management of employee health. The increasing globalisation encourages us to set global requirements in order to supplement local standards. Once again we had no fatalities in the energy or industry segments. However, in the transport segment we suffered 20 work related fatalities in 2008, a drop from 25 in 2007. We deeply regret these tragic events. None of the fatalities are acceptable, and we will continue to stress the importance of working according to procedures and respect for local procedures and regulations. We aim for employees being protected by the same health practice no matter where in the world they work. Read more on page 19. In 2008, for the first time, we can report an overall result for Lost Time Injuries Frequency (LTIF) for the A.P. Moller - Maersk Group. This number was 5.08 and the underlying trend in the majority of our business units is a reduction of LTIF. Our goal is a continued reduction of work-related injuries, and our business units are conducting campaigns and training programmes to increase safety awareness as a means to reach this goal. During 2008, the implementation of the Group’s Health, Safety, Security and Environment Manual was begun in the business units. The purpose of this manual is to secure the appropriate organisation and leadership of the work to assist in reducing fatalities and work-related incidents. We firmly believe that this improved framework will enhance our performance in the years to come. 2 Health, Safety, Security and Environment Report 2008 Security Environment In 2008, three ships owned by the A.P. Moller - Maersk Group were hijacked or attacked by pirates in the Gulf of Aden and off the East African coast. To mitigate the risk of piracy, we chose to reroute certain ships away from the Gulf of Aden at the end of 2008. Through industry organisations we are working to maintain pressure on the international community to find global solutions. In 2008, our Executive Board approved a group-wide environmental strategy. The cornerstones in our approach are innovation, technological advances and partnerships. Through this approach, we will reduce our environmental footprint. Our business units are now in the process of setting targets for their contribution to this task. Piracy is not a problem that the A.P. Moller - Maersk Group or the industry as such can solve alone. It represents a threat to international trade and must be solved by the international community. Read more on page 22. The general trend of our performance is that we have improved the scale of our environmental impact from 2007 to 2008. The main contributing factors to the improvement in our performance are a range of focused efforts to limit for instance fuel consumption and flaring. Our energy use consists of fuel and electricity consumption. Our fuel consumption in 2008, was approximately 13 million tonnes across the Group, a slight decrease from 2007. Compared to the level of business activity in the transport segment1 (responsible for more than 90% of the Group’s fuel consumption) it represents a reduction of 6%. Higher electricity consumption figures reflect increase in volume of recorded data rather than increased consumption per se. The total CO2 emissions of the A.P. Moller - Maersk Group in 2008 were around 48 million tonnes CO2 equivalent, a decrease of over 5 million tonnes CO2 equivalent. In absolute terms, this is a fall of approximately 9%. In terms of greenhouse gas intensity, measured by kg CO2 per USD turnover, it is a decrease of 20%. 1 www.maersk.com Measured per FFE (Forty-Foot Equivalent container units), container shipping increased 2% from 2007 to 7.0 million FFE. 3 A.P. MOLLER - MAERSK GROUP About the report This report, the second of its kind from the A. P. Moller - Maersk Group, focuses on our health, safety, security and environmental (HSSE) performance covering the calendar year 2008. We measure our performance within these areas in order to improve our performance and to document our progress, and we strive to provide our stakeholders with a balanced view of the Group’s situation and results. Scope The report covers 18 of the A.P. Moller - Maersk Group’s business units. 2 Stated in the Greenhouse Gas Protocol developed by the World Business Council for Sustainable Development and World Resource Institute. The organisational boundary of the report has been established on the basis of what is defined as the operational control approach2. This means the report covers health, safety and environmental impacts of assets over which the A.P. Moller - Maersk Group has operational control. The principle of operational control means that we have the authority to implement a Health, Safety, Security and Environmental management system, or that we are otherwise able to control the performance in these areas. Outside the scope of this report, the A.P. Moller - Maersk Group also owns 37.5% of Höegh Autoliners and has a 20% ownership interest in Danske Bank. A list of the assets included in the report is shown below, demonstrating the diversity, size and HSSE impact of our Group. TABLE 1 We strive to provide our stakeholders with a balanced view of the Group’s situation and results. Transport segment assets Number Assets included APM Terminals 50 container terminals Terminals and buildings Workshops and offices Reefer power generators Lighting equipment Cargo handling equipment (quay cranes, rubber tired gantry cranes, trucks, tractors, reach stackers) Container Inland Services 2,090,161 m2 Depots, equipment maintenance and repair shops, terminals 389 container handlers/reach stackers 115 fork lifts 87 terminal tractors 37 bumpcarts 804 trucks (+38 leased) 2,097 trailers 796 chassis 89 gensets Maersk Line 493 ships 206 own container ships 287 chartered container ships Maersk Logistics/ Damco 157 facilities 58 operated warehouses and container freight stations 99 subcontracted warehouses and container freight stations Trucks and mechanical handling equipments Norfolkline 18 ships 7 Ro/Ro ships 5 Ro/Pax ships 6 chartered ships Safmarine 58 ships 20 own container ships 19 chartered container ships 19 chartered multipurpose ships Svitzer 508 ship 330 tug boats 106 work boats 30 offshore support ships 6 crew boats 3 ocean towage ships 33 miscellaneous ships 4 Health, Safety, Security and Environment Report 2008 TABLE 2 Energy segment assets Number Assets included Danbor Service 6 locations Warehouses Outdoor storage facilities Mobile cranes and forklift trucks Maersk Drilling 25 drilling units 25 mobile offshore drilling units Maersk FPSOs 5 production units 4 floating production, storage and offloading (FPSO) units 1 floating gas storage and offloading (FGSO) unit Maersk Oil 36 production units 16 offshore installations, 13 satellite installations (unmanned) 2 onshore installations 2 floating production, storage and offloading (FPSO) units 1 floating production unit 2 floating storage offloading (FSO) units Maersk Supply Service 54 ships 39 anchor handling tug supply ships and multipurpose support ships 10 platform supply ships 3 craned offshore support ships 2 field and subsea support ships Maersk Tankers 61 ships 9 crude carriers 19 product tankers 5 LNG carriers 13 LPG carriers 15 chemical carriers The report covers health, safety and environmental impacts of assets over which the A.P. Moller - Maersk Group has operational control. TABLE 3 Industry segment assets Number Assets included Dansk Supermarked 1,922,718 m Maersk Container Industry 3 production plants Odense Steel Shipyard 1 production plant Steel shipyard Rosti 15 production plants 88,146 m2 production, warehouse, office area 283 injection and moulding machines Specialised plastic welding equipment Plastic Painting facilities Star Air 12 aircraft 11 Boeing 767-200 SF freight aircraft 1 Challenger 604 aircraft 2 1,275 stores and warehouses Company cars and trucks Production and office area Power station Reefer and dry containers Dry ovens Trucks and forklifts For Dansk Supermarked, all stores and warehouses in Denmark and abroad are included. For safety data, the activities of Odense Steel Shipyard include the shipyard in Denmark, but not the shipyards in Estonia and Lithuania due to insufficient data. For Maersk Container Industry and Rosti, all production plants are included. www.maersk.com 5 A.P. MOLLER - MAERSK GROUP In late 2008, we started a high-level materiality review of the Group, in order to have a better understanding of all the important issues around our businesses. The use of the control approach is most apparent in terms of ships in our transport and energy segments. In the transport segment, ships owned by A.P. Moller - Maersk include a total of 746 ships, and of these, chartered ships number a total of 331 ships. Since the A.P. Moller - Maersk Group has significant influence on the operational parameters of chartered ships in terms of fuel purchase and route planning, fuel consumption and air emissions from these ships are included in the environmental section of the report. On the other hand, since chartered ships are not crewed by the A.P. Moller - Maersk Group, we have only limited influence on these employees’ health and safety, and except for fatalities, chartered ships are therefore not included in the health and safety data of this report. For the energy segment, subsidiaries and joint ventures of Maersk Oil, Maersk Drilling and Maersk FPSOs are included where the A.P. Moller - Maersk Group has operational control. For Maersk Oil, production units are included from the Danish and the UK parts of the North Sea and from Qatar and Kazakhstan. Ships owned by the A.P. Moller - Maersk Group in the energy segment include a total of 115 ships from Maersk Tankers and Maersk Supply Service. Chartered ships for Maersk Tankers and Maersk Supply Service are not included. the company and its operations; the purpose was to provide an overview of the main issues which are material to our businesses from a sustainability standpoint. The issues were then prioritised. The materiality review identified a number of top priority issues which apply to the Group as a whole, namely: 1. Health, safety and security 2. Environmental impact, including climate change impacts 3. Human rights and labour standards 4. Business conduct and governance 5. Supply chain management and procurement 6. Community involvement and investment In addition to these, there are a number of issues which are specific to the individual business units in the Group, and within an individual business unit the priorities may well be different. This report addresses the first two priorities while the remainder will be addressed in future reports. Selection of topics for the report While preparing our environmental strategy in 2007, we assessed the most important environmental issues facing the A.P. Moller Maersk Group by identifying the main activities and environmental impacts of each of our business units. In late 2008, we started a high-level materiality review of the Group, in order to have a better understanding of all the important issues around our businesses. This involved identifying both our major stakeholders and the significant environmental and social responsibility aspects of 6 Health, Safety, Security and Environment Report 2008 Stakeholder engagement Determining the material topics of necessity involved identifying our key stakeholders. Stakeholder engagement in the A.P. Moller - Maersk Group takes place at many different levels for example with our customers, regulators, employees, suppliers and contractors and with various industry bodies. During 2009, we intend to develop a more structured approach to stakeholder engagement and explore further material issues for our business. This will be important input to the development of our sustainability strategy going forward. Extensions and improvements We started reporting on health, safety and environment issues in our Health, Safety & Environment Report 2007. This year, we have added a new topic: security. Based on increasing activity and attention to the threat of piracy, which affects the safety of our crews, assets and the industry as a whole, it has become material to the Group to report on this subject (see page 22). Due to its growing importance – not only for the world at large but also for our Group – we have also chosen to dedicate a section of the environmental chapter to the challenges of climate change. We have also expanded the quantity and quality of the data, particularly on the consumption of electricity, and over the next 3–5 years we intend to increase the scope of our reporting to cover the broader range of sustainable development issues which are material to our businesses. The A.P. Moller - Maersk Group’s stakeholders Customers Shareholders and investors Employees Local communities Society and the general public Regulators and authorities A.P. Moller Maersk Group Suppliers www.maersk.com Media Trade unions NGOs Contractors 7 A.P. MOLLER - MAERSK GROUP We have also expanded the quantity and quality of the data, particularly on the consumption of electricity, and over the next 3–5 years we intend to increase the scope of our reporting to cover the broader range of sustainable development issues which are material to our businesses. Based on our work to determine materiality in 2007 and 2008, we will include water consumption, waste and spills, anti-corruption and responsible procurement in our reporting for 2009. In 2010 we aim to refine our reporting on emissions, energy and water and add materials as well as products and services to our reporting. In the coming years, we will be developing further indicators and targets for emissions and occupational health and safety, as well as developing social responsibility indicators and extending our reporting to cover additional topics. More information can be found on our websites: www.maersk.com and www.maerskgreen.com. Some of our business units provide detailed reporting on their own activities. More information can be found on their individual websites. Reporting principles and assurance This report is based on the G3 Sustainability Reporting Guidelines developed by the Global Reporting Initiative (GRI), which is the world’s most widely used sustainability reporting framework. Please see page 41 for an overview of where in this report GRI standard disclosures can be found. Furthermore, we are applying the AA1000 Accountability Principles Standard (APS) 2008 which provides the basis for establishing, evaluating and communicating accountability. The standard demands that an organisation actively engages with its stakeholders, fully identifies and understands the sustainability issues that will have an impact on its performance, and then uses this understanding to develop responsible business strategies and performance objectives. Our reporting on environment (energy and consumption and air emissions) and health and safety (lost time incidents) has been verified by Det Norske Veritas (DNV), which is one of the leading certification bodies. Our reporting has been verified according to DNV’s protocol, VeriSustain which draws on the AA1000 AS (2008) and the Global Reporting Initiative. TABLE 4 Road map for reporting on key sustainability issues 2007 Health & Safety Fatalities Lost time injury frequency (LTIF) 2008 2009 2010 2011 + + Hazardous wastes A A + Materials (e.g. steel consumption) Solid wastes (e.g. total weight of waste sent to landfill) A A + + Product and services (qualitative initiatives to mitigate impact) Significant spills (e.g. oil, chemicals and fuel) + + + Transport (e.g. business travel) + Water consumption + Other key issues Social responsibility (e.g. human rights) + Compliance (e.g. fines) A + Environment Biodiversity (e.g. habitats protected or restored) Other air emissions (e.g. SOx, NOx and PM) + + Security Security (e.g. piracy) Greenhouse gas emissions (direct & indirect) 2013 + + Occupational health and safety Energy consumption 2012 In the coming years, we will be developing further indicators and targets for emissions and occupational health and safety, as well as developing social responsibility indicators and extending our reporting to cover additional topics. A A A + + key issue introduced A indicators added 8 Health, Safety, Security and Environment Report 2008 Assurance statement Det Norske Veritas (‘DNV’) has been commissioned by the management of A.P. Moller - Maersk Group (‘the Group’) to carry out verification of the Group’s printed 2008 Health, Safety, Security and Environment Report (‘the Report’). The Group is responsible for the collection, analysis, aggregation and presentation of information within the Report. Our responsibility in performing this work is to the management of A.P. Moller Maersk Group only and in accordance with terms of reference agreed with the Group. The assurance engagement is based on the assumption that the data and information provided to us is complete and true. Scope and limitations of assurance The scope of work agreed upon includes the following: • Verification of the Health, Safety, Security and Environment (HSSE) activities and consolidated group-level performance indicators reported for the period January–December 2008; • All on-site verification work conducted at the Group’s Head Office only, during April 2009. We did not visit any operating sites of individual business units; • Verification of baseline data and areas such as labour relations and human rights were not included in the scope; • The reporting boundary covers those business assets within the Group’s Transport, Energy and Industry segments over which it has operational control. Verification methodology Our assurance engagement was planned and carried out in accordance with the DNV Protocol for Verification of Sustainability Reporting. The Report has been evaluated against the following principles: Materiality, Completeness, Neutrality, Reliability, Responsiveness and Stakeholder inclusiveness, as set out in the DNV Protocol. As part of the verification DNV has challenged the HSSE-related statements and claims made in the Report and assessed the robustness of the underlying data management system, information flow and controls. We have: • Checked and reviewed documents, performance data and other HSSErelated information made available to DNV; • Conducted interviews with 26 representatives, including data-owners and decision-makers from different business units and Group functions; • Performed sample-based reviews of the Group’s implementation of its HSSE-related policies, as described in the Report, and for determining material issues included in the Report; • Performed sample-based checks of the processes for generating and managing the quantitative and qualitative data in the Report. Conclusions In DNV’s opinion, the Report is an accurate and fair representation of the Group’s HSSE-related strategies, management systems and performance. The Group has worked systematically to strengthen its HSSE risk management, and it shows a clear commitment to improved transparency. As the Group extends its scope of reporting in 2009 to wider sustainability impacts, we expect the next report to address other material risks such as labour relations, human rights and business conduct. We have evaluated the Report’s adherence to the principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’: Materiality: Good. The Group has demonstrated internal processes that are effective in bringing out HSSE issues of significance to the Group and its stakeholders. The results have been used to structure the Report content and select relevant performance data. Completeness: Acceptable. Within the reporting scope and boundary defined by the Group, we accept that the Report does not omit relevant information that would influence stakeholders’ decisions or that reflect significant HSSE impacts during 2008. The Report prioritises safety and environmental data due to effective measurement. The use of the operational control approach leads to the omission of health and safety data from chartered ships, but we commend the Group for choosing to report fatalities data from chartered ships. Neutrality: Good. We consider the overall tone of the Report to be neutral and the presentation of information to be balanced. The emphasis on various topics in the Report is proportionate to their relative materiality. Challenges and limitations are presented together with commitments to future improvements. Reliability: Needs improvement. The data measurement techniques and basis for calculations have been adequately described to DNV. No systematic errors were detected, but we identified some manual errors in the transcription of environmental and safety data into the Report, which have subsequently been corrected. We also recognise that the Group’s re-organisation of business units and its activities to improve HSSE data collection and quality may affect year-on-year comparability. However, the Group is strongly committed to ongoing improvement of data quality and will implement a new IT-based data management system during 2009. Responsiveness: Good. During 2008, the Group has responded to stakeholder expectations of improved transparency and engagement in an effective manner. An expanded platform of new strategy documents, guidance manuals and other internal management tools is in place to structure HSSE management. This process and related activities in different business units are reflected in the Report. Stakeholder inclusiveness: Acceptable. The Group is implementing a systematic process for identifying and engaging with stakeholders, and we expect the next report to document this activity and results of such dialogues in more detail. Opportunities for improvement The following is an excerpt from the observations and opportunities reported back to the management of the Group. However, these do not affect our conclusions on the Report, and they are generally consistent with the management objectives already in place. • In rolling out the new HSSE management platform, the Group should undertake ongoing internal communication (e.g. through networks and training) to ensure participation across all business units; • Internal benchmarking of best practices could help ensure knowledgesharing among data-owners and decision-makers; • Internal monitoring and auditing of data should continue to prioritise material indicators, such as GHG emissions and Lost Time Injuries, to ensure accurate and reliable data; • The Group’s road map for reporting on other environmental indicators (e.g. spills, waste and water) requires immediate action by business units to ensure a sound basis for measurement; • Reporting of health data has not been a focus of the 2008 Report, but the implementation in 2009 of the Group’s Health Manual should provide a stronger basis for measuring and reporting health performance going forward; • The Group’s plans to expand stakeholder engagement activities should prioritise dialogue with stakeholder groups whom the Group has not previously engaged with in a structured manner. DNV’s independence and disclaimer DNV was not involved in the preparation of any statements or data included in the Report except for this Assurance Statement. DNV did not provide any services to the Group during 2008 that could conflict with the independence of our work. DNV maintains complete impartiality toward stakeholders interviewed during the verification process. DNV expressly disclaims any liability or co-responsibility for any decision a person or entity would make based on this Assurance Statement. For Det Norske Veritas, Dr Helena Barton Service Area Manager: CR Report Verification Det Norske Veritas AS Thomas Andrésen-Gosselin Verifier Det Norske Veritas AS Copenhagen, 23 April 2009 www.maersk.com 9 A.P. MOLLER - MAERSK GROUP Governance of health, safety, security and environment In the A.P. Moller - Maersk Group, we aim for a corporate culture that makes health, safety, security and environment (HSSE) an inherent part of the employee mindset, supported by a company vision to have a workplace free from incidents. The manual was introduced in 2007 and will be fully implemented by the end of 2009. Training, seminars and re-organisation of HSSE work in a number of business units have been carried out in 2008. This chapter describes how we manage HSSE in the A.P. Moller Maersk Group. Some elements of this governance structure have travelled with the Group for decades while others have been systematised and added to the formal structures only in the last few years. Together they comprise a single structured framework which aids us in setting targets, pursuing them as well as evaluating our progress. By the end of 2009, when the HSSE management system is fully implemented, our business units will manage HSSE as critical business activities, set standards and targets for improvement As part of our journey towards sustainability performance and reporting, we are currently working to establish the necessary parts to complete the governance framework. We aim to manage our HSSE impacts by defining indicators for performance, setting targets, measuring and reporting on these. At this stage, we have indicators and targets for fatalities, and lost time injury frequency and targets for environmental impact are under preparation. In the future we will increase the number of indicators for reporting in all areas and further establish targets. Governance structure HSSE in the A.P. Moller - Maersk Group is managed at two levels; group level (corporate) and business unit level. The Group has a strategic policy making role while the responsibility for day-to-day management of HSSE is at business unit level. The guide for all activities in the A.P. Moller - Maersk Group is our Group vision, our values and our fundamental business principles. Stemming from these is the Group HSSE policy, which defines HSSE strategies and obligations for the Group as a whole and for its individual business units. This policy has been approved by the Executive Board of the A.P. Moller - Maersk Group, which is also the supervising body for HSSE work in general. At group level, the policy making and guidance is carried out by Group HSSE. Its role is to establish group-wide HSSE policies and strategies, to facilitate knowledge sharing and to provide best practice advice. To ensure alignment in the performance of the policy, a groupwide HSSE manual and HSSE guidance have been published. Working according to the manual allows business units to live up to not only the requirements of Group management, but also to various standards, e.g. ISO 14001 (environmental management standard) and OHSAS18001 (Occupational Health and Safety management standard). The manual and guidance also serve to establish a coherent risk management system for HSSE risks. 10 Some elements of this governance structure have travelled with the Group for decades while others have been systematised and added to the formal structures only in the last few years. and measure, monitor, evaluate and report on performance. The business units are expected to perform annual self-evaluations of their HSSE activities and performance, resulting in an annual HSSE action plan, which must be integrated with the targets set in the annual Group HSSE Action Plan, under the management of Group HSSE. The HSSE division between group level and business unit level Business unit level HSSE management: Daily management responsibility Group level HSSE management: Overall strategies, action plans and Group policies A.P. Moller - Maersk values and fundamental business principles Health, Safety, Security and Environment Report 2008 We aim for a corporate culture that makes health, safety, security and environment an inherent part of our employees’ mindset. As a further governance mechanism, Group HSSE performs strategic HSSE reviews based on the HSSE manual of each business unit every third year. tion – both in terms of quantity and quality. In the A.P. Moller Maersk Group, business units report monthly to Group HSSE on safety indicators and annually on environmental performance. The data challenge A crucial factor in improving our performance is measuring performance. This is true for HSSE as well as other business subjects, and measuring implies data. In 2007, a process was initiated to gather basic HSSE data at Group level in order to monitor and manage performance more effectively across the entire organisation. This process has continued through 2008 resulting in, for example, improvements in the data on electricity consump- An IT-based data management system, for both HSSE and other critical business data, designed to improve data collection and quality, is in the process of being implemented by our many business units across the world. This work is expected to be finalised within the next three years. www.maersk.com 11 HEALTH & SAFETY As many of our employees work under challenging conditions, it is our responsibility to control risks to their health and safety from work activities. HEALTH & SAFETY Improving safety and protecting our employees Many of our employees work under challenging conditions, for example using equipment or performing their job in harsh environments. We must make sure that we do our utmost to control risks to our employees’ health and safety from work activities. In 2007, our Group CEO approved the Group Health, Safety, Security and Environment Manual (Group HSSE Manual), and the implementation process across our business units began in 2008. With this, we are confident that we have taken a significant step forward in achieving our vision of zero fatalities and injuries in our workplaces. Structure will aid our progress We believe the requirement to set – and achieve – measurable targets for health and safety in all business units will help us secure the health and safety of our employees on board our ships, rigs and platforms, as well as on shore in our terminals, offices, supermarkets, at manufacturing sites, depots, etc. The implementation of the HSSE manual has led to increased activity in the area of health and safety in 2008. A number of business units have worked to improve the organisation of the HSSE work and carried out activities to improve the safety culture. Examples include Maersk Logistics/Damco creating an HSSE structure, Danbor creating an HSSE plan covering the entire company, Container Inland Services having all parts of their organisation signing personal commitments to HSSE, Maersk Tankers setting HSSE targets and objectives for the individual ships, Maersk Supply Service creating a dedicated HSSE department, Maersk Drilling and Maersk FPSOs publishing a safety culture handbook, and Maersk Oil running a pilot of a global process safety training programme. To improve data collection and monitoring of performance, an ITbased data management system is being rolled out in the A.P. Moller - Maersk Group. The aim is to have a shared platform to build up the necessary data capabilities at business unit and group level. Implementation of the system is being approached incrementally. To gain experience, a pilot project was initiated in 2008, in the tug boat company Svitzer, with completion in the first quarter of 2009. On evaluation of this process, the system will be rolled out to other business units. Training programmes for management in the A.P. Moller - Maersk Group began in 2008. Their purpose is to give managers a deeper understanding of the different aspects of HSSE as well as of tools to measure and improve performance. As yet, the effect of this training is unknown. It is part of the road we are travelling on to increase the focus on sustainable behaviour – safety for employees being one aspect of this. Safety performance Global transport systems comprise a highly complex set of activities of which many can be hazardous, with heavy equipment and loads having to be moved on land and from land to sea and vice versa. In addition, we deal with different safety mindsets in the many countries in which we operate. In the oil and gas industry, risks are even more obvious, and personnel and process failures can potentially cause major incidents. While we have procedures in place, such working environments require high standards of safety management. GROUP HSSE MANUAL Structuring our HSSE efforts The manual requires business unit management to: • develop an HSSE policy, • establish and communicate an HSSE action plan including clear objectives and targets, • provide the necessary resources to organise the management of HSSE appropriately, • establish and maintain a systematic training programme, • ensure systematic HSSE risk management including the establishment of relevant procedures, 14 • develop and communicate procedures or work instructions, • establish and maintain an audit programme carrying out periodic audits of the HSSE management system, • record and report all accidents, incidents and near misses to ensure learning and follow-up actions, • conduct annual HSSE management reviews based on a system of regular monitoring of the HSSE performance on agreed indicators, • establish a documentation system to ensure full control of the HSSE management system. Health, Safety, Security and Environment Report 2008 In the energy segment, we experienced another year without fatalities compared to a total of 32 fatalities in the drilling industry as a whole3, and 87 for the oil and gas industry 4. In the A.P. Moller - Maersk Group’s industry segment no fatalities were recorded in 2008 either. However, in the transport segment we suffered 20 work related fatalities in 2008, compared to 25 in 2007. We deeply regret these losses. Despite our company’s size and reach, these 20 fatalities under our management are unacceptable. We feel strongly obligated to improve our performance in this area. Building a shared safety culture Through learning from the past and more robust investigation techniques, we aim to improve our performance in the future. To aid us in reaching this goal, we have begun implementation of an incident investigation software. Also, we anticipate the Group HSSE Manual and the implementation of its procedures will help 3 4 International Association of Drilling Contractors (IADC), ASP program, 2008 Summary Report International Association of Oil & Gas Producers, Safety performance indicators – 2007 data, Report no. 409, May 2008) us along the journey we have recently begun. The fatalities have mainly occurred during vehicle movements (trucks, forklifts, stackers) and the handling of containers. Nine of the fatalities happened in APM Terminals. Five fatalities occurred in Maersk Line, five in Container Inland Services, and one in Maersk Logistics. The fatalities involved direct employees of the A.P. Moller - Maersk Group and contractors. Each of these fatalities has been investigated and follow-up action has been agreed. The causes vary, as does the detail of the root cause analysis provided. Investigations reveal both a lack of establishment of or adherence to local procedures and lack of human foresight. None of the fatalities are excusable however, and we will continue to stress the importance of work procedures and respect for local procedures and regulations. We are forced to acknowledge that there is still some distance to cover, before we have an equally mature and effective safety culture and mindset across the A.P. Moller - Maersk Group. This will require substantial work and training, a process which has been started in 2008 through the Group HSSE Manual and the many activities carried out by the business units. TABLE 5 Fatalities 2008 Business unit Location Employed by APM Terminals Apapa, Nigeria Abidjan, Ivory Coast Apapa, Nigeria Pipavav, India Port Said, Egypt Tanjung Pelepas, Malaysia Houston, Texas Kingston, Jamaica Pipavav, India Contractor Contractor A.P. Moller - Maersk Contractor A.P. Moller - Maersk A.P. Moller - Maersk Contractor Contractor Contractor Container Inland Services Lilypond Depot, Nigeria Start Track Terminal, Dandri India Sitrans Depot, Placilla, Valparaiso, Chile Carretera Panamericana, San Martin, El Salvador Moscow-Novodachnaya A.P. Moller - Maersk Contractor A.P. Moller - Maersk A.P. Moller - Maersk A.P. Moller - Maersk Maersk Line Charter ship MAERSK VIGO, South Africa Charter ship MARINE RICKMERS, Monrovia MAERSK KITHIRA, China Sea Charter ship HENRIETTE SCHULTE, Columbia Charter ship SANTA ALINA, Togo Contractor Contractor A.P. Moller - Maersk Contractor Contractor Maersk Logistics Shenzhen, China Contractor www.maersk.com Global transport systems comprise a highly complex set of activities of which many can be hazardous, with heavy equipment and loads having to be moved on land and from land to sea and vice versa. 15 HEALTH & SAFETY Work-related injuries Incidents causing injury to our employees have occurred in 2008. We are working diligently to reduce the frequency of these occurrences. Often, these injuries occur in spite of existing procedures, which emphasizes the need for ongoing training and awareness of how a safe working environment is built and maintained. in fact an LTIF of 7.15 equal to a reduction of 37%. We are pleased with this performance, which was made possible by a range of initiatives, among which was a project to provide personal safety plans for all employees and the celebration of a Global Safety Day across the company. The overall result for Lost Time Injury Frequency (LTIF) for the A.P. Moller - Maersk Group in 2008 was 5.08. Aligning the monitoring and reporting on this number happened only in 2008, which means no comparison number exists for 2007. However, looking at the numbers from the individual business units, a clear trend towards an improved LTIF performance through 2008 appears. Maersk Line and Safmarine report together and achieved an LTIF for 2008 of 1.07. This is due to increased safety awareness through for example the implementation of safety management workshops for shore side managers and the running of a Safety Ambassador Course for captains. In 2008, 73 captains attended the course. In addition, more focus has been put into investigations of injuries. The implementation and follow-up procedures, which will be in place when the Group HSSE Manual becomes fully implemented across the Group, make us optimistic about significantly reducing these events further in the years to come. Svitzer had an LTIF target of 2.00 for 2008. The final result was 1.64, which was above target and a large improvement on the 2007 performance of 2.60. This was due to the continued integration process of the Adsteam fleet purchased in March 2007. Table 6 contains the injury statistics for our business units in 2008. Norfolkline had an LTIF for 2008 of 5.63 compared to 13.59 in 2007 and a target of 12.23 for 2008. The result shows that Norfolkline’s many initiatives and hard work at all levels, in both 2007 and 2008, paid off by the end of 2008. The initiatives include a range of tailored safety courses, analytical review of current operating practices, accident causal analysis and regular monitoring feedback. TRANSPORT In total, the transport segment had an LTIF of 4.66. This number covers a great variety, however, from Maersk Line’s LTIF of 1.07 to Container Inland Services’ of 19.88. The reason why Container Inland Services’ LTIF is so high is because of the nature of activity, such as moving heavy equipment. APM Terminals had a target of reducing LTIF in 2008 by 10%, corresponding to an LTIF of 10.35. The result for the year 2008 was Maersk Logistics, Container Inland Services and Maersk Container Industry no longer report as part of the former Container Business but as separate business units and thus have no disaggregated data for 2007. TABLE 6 Lost Time Injury Frequencies in the A.P. Moller - Maersk Group 2008 Business unit Performance ‘07 APM Terminals Container Inland Services* Danbor Dansk Supermarked Maersk Container Industry* Maersk Drilling and FPSOs Maersk Line (incl. Safmarine)* Maersk Logistics* Maersk Oil Maersk Supply Service Maersk Tankers Norfolkline*** Odense Steel Shipyard** Rosti*** Star Air (data from 2009) Svitzer A.P. Moller - Maersk Group Target ‘08 Performance ‘08 Target ‘09 Industry benchmark 1.53 2.34 0.59 13.59 57.00 10.78 10.35 14.40 2.52 10.60 3.27 1.50 2.00 3.29 1.71 2.12 0.60 12.23 45.60 8.91 7.15 19.88 0 9.20 3.34 1.09 1.07 3.83 1.96 1.43 1.38 5.63 42.11 3.58 n/a n/a n/a 24.70 32.30 2.355 n/a n/a 0.666 1.207 n/a n/a 32.308 32.30 2.60 2.00 1.64 6.38 13.60 2.38 8.75 3.09 1.10 1.00 3.26 1.62 1.10 0.60 11.50 33.70 8.42 0 1.50 5.08 4.35 n/a 9.60 4.80 11.78 1.67 n/a *** In 2007, all the business units marked * were part of the Container Business and reported under Maersk Line (vessels) (2.12) and Container Business (2.35) *** Figures do not include the shipyards in Estonia and Lithuania due to insufficient data *** Some business units have developed reduction targets over a five year period, and targets have not been adjusted in light of annual performance 5 International Association of Drilling Contractors ISP Summary Report 2008 International Association of Oil & Gas Producers, Safety performance indicators – 2007 data, Report No. 409, May 2008 Marine Safety Forum 2007: www.marinesafetyforum.org/upload-files//notices/amm_11.07_ukcs-safety-performance.pdf 8 Dansk Arbejdsgiverforening, Arbejdsulykker 2007, 20 August 2008 6 7 What is Lost Time Injury? A Lost Time Injury (LTI) is defined as any work related injury or occupational illness which results in a person being unfit for his/her regular work for more than 24 hours after the injury. What is Lost Time Injury Frequency? Lost Time Injury Frequency (LTIF) is one way to measure a company’s safety performance by measuring the number of lost time injuries excluding fatalities per million exposure hours. APM Terminals had a number of safety initiatives in 2008. Among them was the Global Safety Day reminding everyone of the importance of safety. APM Terminals makes safety everyone’s business APM Terminals has 50 port terminals in 34 countries across five continents. Containers, loading cranes, trucks and fork lifts, 20,000 men and women in hard hats and fluorescent vests shouting into walkie-talkies all combine to create a highly buzzed atmosphere. Unfortunately, it is also a place where work-related injuries and even fatalities occur. In 2008, APM Terminals launched a number of initiatives to improve safety performance which resulted in a significant reduction in LTIF of 26% compared with 2007. Still, the challenge remains. APM Terminals has an LTIF above the A.P. Moller - Maersk Group average of 5.08 and suffered nine fatalities in 2008. New initiatives rolled out One of APM Terminals’ initiatives is the ‘Safety for Life’programme. One element of this is the Personal Safety Plan, where close to 15,000 of APM Terminals’ 20,000 employees have set 4–6 personal safety goals, describing what they will do to improve safety. During the second “Global Safety Day” on 22 October, a large amount of local safety actions were also performed to remind everyone of the importance of safety and a comprehensive world-wide safety culture programme for all terminal personnel was introduced. The goal of the new programme is to instil a “culture of safety” and the adoption of best-practice procedures into the daily operations. More than 2,800 persons completed training under the title ‘Health and safety for all’, and 1,650 people completed a security module in the company’s training programme. www.maersk.com Thinking in the long term APM Terminals sees the safety culture programme as an important step towards eliminating fatalities throughout its global terminal network. The programme focuses on accident prevention awareness, an overview and reinforcement of operational safety procedures and the active encouragement of company and terminal personnel to adopt and embrace a new philosophy of workplace behaviour in which safety is integrated into the core business processes. Head of CSR/HSSE in APM Terminals, Henrik Kristensen, recognises that the end target of zero fatalities and injuries will require more work. However, he is pleased with this year’s progress for LTIF. “We still have a long way to go. We expect to deliver substantial reductions in the coming years and we need employees to help us make APM Terminals the safety leader in the port industry,” Henrik Kristensen says. Henrik Kristensen, Head of CSR/HSSE in APM Terminals, and his colleagues have worked intensively to instil a safety culture at the port terminals. 17 HEALTH & SAFETY ENERGY We are active in many sectors of the oil and gas industry, from supply ships and drilling rigs to production facilities. The A.P. Moller - Maersk Group has been confronting the risks in this industry for decades, resulting in comprehensive safety strategies in our energy segment. Maersk Tankers’ fleet in 2008 had an LTIF performance of 1.38 compared to 2007’s 0.59. Their target was set at 0.60. Revising a procedure in January 2008 led to a change in the definitions used for registering injuries to align with industry standards, and subsequent adjustment in number of LTIs. In Maersk Oil, the LTIF was 1.90 while the average LTIF for the Exploration and Production Industry for 2007 was 0.66 covering 30 companies9. As part of their management system that is focused on the prevention of, preparedness for, and mitigation of catastrophic releases of chemicals or energy from a process associated with an operating facility, Maersk Oil is developing a Global Process Safety Training Programme based on a pilot course held in November 2008. This programme will be rolled out in 2009. In 2008, the shared LTIF for Maersk Drilling and Maersk FPSOs fell from 1.67 in 2007 to 1.09, well below the target of 1.50 and even further below the industry average of 2.35 in 200810. The improvements were due to a range of safety activities. In 2008, a safety culture handbook was launched in Maersk Drilling and Maersk FPSOs, as a follow-up to a 2007–2008 safety culture campaign which embraced almost 4,500 employees, customers and subcontractors (4,300 people are employed by Maersk Drilling and Maersk FPSOs). The handbook is meant to remind all participants about the outcome of the workshops. In December 2008, Maersk Drilling launched the ‘Hands & Fingers’ injury campaign. Injuries to hands and fingers are very frequent both onand offshore. 39% of all injuries are related to hands and fingers in Maersk Drilling and Maersk FPSOs. The aim of the campaign is to support a common safety culture and understanding, striving for the overall goal of zero injuries. 09 10 International Association of Oil & Gas Producers, Safety performance indicators – 2007 data, Report No. 409, May 2008 (2008 data not available at the time of publication). International Association of Drilling Contractors, IADC ASP Program 2008 Summary Report. Note: When using the IADC calculation methods, the LTIF is 1.74. 18 Maersk Supply Service provides anchor handling, cable laying, tug and support in the environment of open seas, which is the basis for the higher injury frequency when compared with the other business units in the energy segment. With a target of 2.12 for 2008, the LTIF went from 2.34 in 2007 to 1.43 in 2008 due to a greater focus on safety. This includes thorough investigation of injuries, distribution of ‘Lessons from Incidents’ reports, quarterly management reviews of safety, and a push to increase the number of near miss reports, which are up by 70% compared to 2007. The latest LTIF for the industry as reported in 2007 by the Marine Safety Forum representing North Sea supply vessel companies was 1.2. Also in 2008, captains on Maersk Supply Service’s ships were offered a Safety Ambassador Course at the Maersk Training Centre, providing participants with a Safety Toolbox encompassing all major elements in running a safety campaign at sea such as presentations, posters, leaflets, etc. Danbor has carried out general safety awareness training and created an HSSE plan covering the entire Danbor organisation, which has led to an LTIF of 0 in 2008, a significant improvement from 2007 (4.80). INDUSTRY In our industry segment we have activities as diverse as shipbuilding, plastic production and retail operations, and the risk profiles vary accordingly. Furthermore, onshore industries have for some years had higher injury rates than our offshore segments. This is a consequence of the strong focus on safety in the offshore areas due to major injuries in the past that call for extra safety attention. The LTIF from Odense Steel Shipyard is consistently higher than those of our other business units. For that same reason, the shipyard’s management at the end of 2007 requested an internal audit of the facilities by Group HSSE in order to identify actions for improvement: focus on signs related to safety at work, publication of LTIF results, meetings with management participation discussing ideas for safety promotion. These actions were implemented in 2008 and resulted in a drop in the LTIF from 57 to 42.11, beyond the target of 45.6. Health, Safety, Security and Environment Report 2008 At Rosti, the LTIF fell substantially from 10.78 to 3.58 in 2008, while the target number was 8.91. This fall can be attributed to increased attention on safety issues, such as implementation of improved accident recording and corrective action loop. Maersk Container Industry had a target of 3.27 and the result was an LTIF of 3.34. Dansk Supermarked’s LTIF ratio of 9.20 was well below the target of 10.60, corresponding to a reduction of over 20% from 2007. Employee health While safety hazards have the potential to cause sudden injury, health hazards have the potential to cause occupational illness which may be acute, delayed or chronic with varying degree of disability or even death. Traditionally, our health practices have been based on local standards related to local legislation. But the increasing globalisation requires a more global approach. We now aim for employees being protected by the same health practice no matter where in the world they work. GLOBAL HEALTH WEEK Healthy body, healthy mind, healthy workplace, healthy life! In November 2008, a full week was designated health week in the A.P. Moller - Maersk Group globally. A campaign targeting all employees aimed at creating awareness and promoting behavioural changes with regards to a healthy lifestyle. Daily health tips were posted on the intranet covering topics such as food, smoking, alcohol, exercise and stress, while business units and offices were encouraged to follow up on this campaign and make health an important part of the daily work life. www.maersk.com To this end, we completed the A.P. Moller - Maersk Group Health Manual in 2008. It serves to compliment the Group HSSE Manual, providing more specific steps required to carry out health risk management. Guidance and good practice examples to assist in implementing these mandatory elements are also provided. The manual requires management programmes to be in place to assess, control and document the identified health risks arising from chemical, physical, biological, ergonomic and psychological hazards associated with the work environment, e.g., climate, air quality, noise, exposure to potentially hazardous substances, work load, discrimination etc. Monitoring compliance with national statutory requirements is mandatory for all aspects of health management. Starting in 2011, the Group Health Manual will be included in the annual self-assessments performed by the business units based on the overall Health, Safety, Security and Environmental Management system which was launched and begun implementation in 2008 across the Group. All business units must be in compliance by the end of 2010. Health week posters In many of our offices around the world, employees got busy with health advice. One example, in Shenzhen, China, employees were asked to swap one piece of health advice for one cup of warm soup as they arrived to work on a particularly cold day. More than 150 pieces of health advice were gathered and posted in the office kitchen. The advice also showed how East meets West in this particular office, as Western and traditional Chinese health advice mixed on the posters: ‘Less Cola’ vs. ‘one day’s true laughter can make you 10 years younger’. 19 SECURITY Keeping employees and assets secure – both our own and our customers’ assets while in our care – have always been of high priority to the A.P. Moller - Maersk Group. In recent years, however, geo-political instability has increased the need for overview and coordination of security efforts for a company such as the A.P. Moller - Maersk Group. SECURITY Responding to security risks In 2008, our security measures, such as country risk assessment and security intelligence have been included into the Group HSSE policies and manuals, and subsequently in business unit level management structures. Piracy the main concern The main maritime security issue in 2008 has been the deteriorating security situation in the Gulf of Aden and off the Somali coast – a strategic corridor between the Indian Ocean and the Red Sea. This situation has been put under the media spotlight in many parts of the world. An estimated 1,500 transits are made through these waters under the A.P. Moller - Maersk flag annually. An unprecedented number of attacks took place in 2008 in the Gulf of Aden. According to the annual ‘ICC International Maritime Bureau Piracy and Armed Robbery against Ships Report 2008’, 111 incidents were reported for the east coast of Somalia and the Gulf of Aden. This is an increase of nearly 200% compared to 2007. A total of 42 ships were hijacked by pirates and 815 crew members were taken hostage. Added to this situation are the challenges to establish the legal framework in terms of prosecution of the pirates. In 2008, three ships owned by the A.P. Moller - Maersk Group were either hijacked or attacked by pirates in the Gulf of Aden or off the East African coast: • On 1 February, the tug boat SVITZER KORSAKOV was hijacked by pirates in the Gulf of Aden. The crew of six men were held captive off the coast of Somalia until their safe release on 18 March 2008. • BRITTA MÆRSK, a Danish flagged product tanker, was attacked by pirates on 2 November, while at transit in the Gulf of Aden. The crew initiated anti-piracy measures in accordance with company procedure and the attack was averted. • The container ship MAERSK REGENSBURG was attacked by pirates east off Tanzania on 6 December. By initiating antipiracy measures the crew managed to avert the attack. Precautions consist of strict lookouts and fire hoses rigged and fixed to cover the ships’ quarters and stern. In case of a suspicious approach the spraying of water, sounding of the general alarm and performing of evasive manoeuvres to avoid the pirates are some of the actions to be taken. In late 2008, the A.P. Moller - Maersk Group became one of the world’s first shipping companies to decide to reroute certain ships away from the Gulf of Aden. Ships which have a low freeboard and/or low speed will have to sail around the Cape of Good Hope – unless the ship can be part of one of the naval convoys sailing through the Gulf of Aden. We do not use armed private security teams nor do we carry any weapons on board our ships. Piracy is not a problem that the A.P. Moller - Maersk Group or the industry as such can solve alone. It represents a threat to international trade and must be solved by the international community. However, we are via organisations such as the Danish Shipowners Association working together with international associations like the International Chamber of Shipping to maintain pressure on the international community. Security on land Another security concern during for 2008, was the August war between Georgia and Russia, both countries where the A.P. Moller - Maersk Group has staff. Fortunately, no evacuation of our employees was deemed necessary. Otherwise, the A.P. Moller Maersk Group has not been affected by any major security incidents on land. Nigeria has the second highest number of serious attacks and continues to be viewed as another risk area. For our ships operating in Nigerian waters and/or calling Nigerian ports, stringent procedures have been established in order to mitigate the security risks. Our response In order to mitigate the risk of piracy attacks on our ships, comprehensive instructions on the Gulf of Aden are being continuously updated and supplied to the ships. The instruction includes detailed reporting procedures as well as precautions to be taken on board the ship in connection with a transit in the Gulf of Aden. 22 An unprecedented number of attacks took place in 2008 in the Gulf of Aden. A total of 111 incidents were reported for the East coast of Somalia and the Gulf of Aden. Health, Safety, Security and Environment Report 2008 In order to mitigate the risk of piracy on our ships, comprehensive instructions on the Gulf of Aden are being continuously updated and supplied to the ships. In order to establish the specific security risks pertaining to the A.P. Moller - Maersk Group, available internal security information combined with information from security risk management companies as well threat assessments towards Danish interests issued by the Danish authorities are being evaluated together with certain financial information such as turnover, revenue, fixed assets, etc. The process results in the identification of a number of high security risk countries. This knowledge enables the business units, who have or consider having activities in any of these countries, to evaluate whether appropriate resources, e.g. security procedures or security guards, are in place, or whether a more in-depth analysis should be performed in order to identify ways to mitigate the security risk. www.maersk.com MAERSK REGENSBURG after a confrontation with pirates 23 ENVIRONMENT Although engaged in very energy intensive industries, we are committed to reducing our environmental and climate impact. Accordingly, our environmental strategy entails that we pursue energy efficiency in our business activities. ENVIRONMENT Pursuing environmental efficiency The A.P. Moller - Maersk Group owns the largest container shipping company in the world and is one of the leading, independent oil and gas operators. Our ships sail in all parts of the world. Activities of this scale obviously impact the environment – on a global, regional and local level. The main environmental impacts from extracting and producing energy as well as transporting goods across waters are through emissions of greenhouse gases, and the impact on people and ecosystems related to emissions of other air pollutants. A range of other impacts are related to our activities, including consumption and discharges of water, generating and handling of solid and hazardous waste, as well as the risk of incidents associated with spills to land and water. In the coming years we will expand our group report to include more information on these topics. Currently, more details about these impacts – as they relate to individual business units – can be found at the business units’ web sites. Today, climate change and the ability to develop reliable and clean energy supplies are at the forefront of public and scientific debate. This comes at a time when the world finds itself in an economic crisis and simultaneously en route to negotiating a new global agreement on climate change. The growing importance of these agendas is clear to us, and in recent years the environmental impact of our businesses has become increasingly important to us. The challenge of minimising our environmental footprint is not taken lightly, and we work diligently to ensure our business operations are as eco-efficient as possible. While the economic downturn has affected our business, our commitment to improving our environmental performance remains as strong as ever. In 2008, our Executive Board approved a group-wide environmental strategy, and the environment remains one of the Group’s priorities for 2009. The environmental strategy continues our efforts to become more efficient through innovation and technological advances, and we participate in relevant international forums to attain global solutions to global problems. Environmental strategy: Eco-Efficiency Our environmental strategic ambition is to pursue eco-efficiency in our daily operations, across all business units, and in the business opportunities we seek. This implies the best possible use of natural resources with the least impact on the environment. Through an extensive strategy process (involving both group and business unit levels) in 2008, we developed a comprehensive environmental strategy for the A.P. Moller - Maersk Group, which will guide our work to minimise our environmental footprint in the future. We have named the strategy “Eco-Efficiency”. The Group environmental strategy is the over-riding “umbrella” defining the scope and borders within which all environmental strategic articulations, actions and organisational behaviour will have to be framed. The strategy aspires to go beyond compliance in order to build competitive advantage. Certain business units may decide to transition into “EcoAdvantage”, with an aspiration to be recognised as an environmental leader and to create significant economic value through cutting edge environmental initiatives and activities. The Eco-Efficiency strategy is expected to reduce our environmental impact as well as create economic value and enhance competitiveness through: • improving resource productivity (energy, water and material), • cutting down environmental costs and regulatory burden, • better managing environmentally driven business risk. AVAILABLE ONLINE maerskgreen.com During 2008, a new website from the A.P. Moller - Maersk Group was launched. Under the name maerskgreen.com all available news, policies, positions and publications related to the environmental strategy and climate change from the A.P. Moller - Maersk Group can be found on this website. 26 Health, Safety, Security and Environment Report 2008 Our environmental strategic ambition is to pursue eco-efficiency in our daily operations, across all business units, and in the business opportunities we seek. This implies the best possible use of natural resources with the least impact on the environment. Also it will enhance the Group’s reputation by being: • better at responding to key customers’ requirements, • better at retaining and attracting talents, • better at accessing and collaborating with governments/ regulators. Starting in 2008, the environmental strategy is currently being implemented in our business units, which are in the process of setting relevant and measurable targets and preparing action plans. This work will continue in 2009. All business units must meet the Group’s ambition level of eco-efficiency. Climate Change on our agenda The decision on Eco-Efficiency as our environmental strategy is an outcome of the A.P. Moller - Maersk Strategic Climate Change Initiative. The initiative focuses on developing strategic responses to the emerging environmental agenda. The UN’s Intergovernmental Panel on Climate Change (IPCC) believes that global warming is largely attributable to an increase in the levels of CO2 and other greenhouse gases in the atmosphere. The A.P. Moller - Maersk Group shares this opinion. While we all contribute to the emission of CO2, the transport and energy sectors emit a large amount of CO2. Our approach to limiting our environmental impact is that not only do we have a duty to society in general, but environmental consciousness also creates business opportunities for our companies. www.maersk.com We strongly support a global solution on climate, since a global challenge needs a global approach. This is why we are involved in a number of organisations that are working towards such an approach. It is crucial that global, not only local, solutions are developed if the rate of climate changes is to be reduced. This will ensure a level playing field, which is necessary to make real progress on the climate agenda. Innovation and partnerships are core elements in our response to the climate challenge. We develop innovative solutions to the benefit of our own Group but also to our respective industries where we aim to take leadership. We engage in partnerships to learn and to share knowledge, thereby creating new sustainable solutions. To manage and reduce our contribution to climate change, we will work towards specific indicators and measurable targets. Having measurable targets will increase transparency – as will our commitment to the Carbon Disclosure Project (CDP). In the past, we did not respond to the questionnaire due to the lack of consolidated group-wide data. The lack of our response raised questions from our stakeholders, including the media. As we are now in a better position to provide the answers required by CDP, and also in order to provide further transparency and accountability to our stakeholders, we will be participating in the Carbon Disclosure Project starting 2009. 27 ENVIRONMENT Environmental performance 2008 The environmental performance of the A.P. Moller - Maersk Group in 2008 can be seen in the table below11. Our focus is on energy consumption, greenhouse gas emissions and other emissions to air from stationary and mobile sources. The general trend for our overall performance is that we have improved the scale of our overall environmental impact from 2007 to 2008. The main contributing factors to the improvement in our performance are a range of focused efforts to limit for instance fuel consumption and flaring. Our energy use consists of fuel and electricity consumption. As for our fuel consumption in 2008, it was approximately 13 million tonnes across the Group, a slight decrease from 2007. Compared to the level of business activity in the transport segment12 (responsible for more than 90% of the Group’s fuel consumption) it represents a reduction of 6%. Measured per USD turnover it represents a drop of more than 10%. Higher electricity consumption figures reflect increase in volume of recorded data rather than increased consumption per se. The total CO2 emissions of the A.P. Moller - Maersk Group in 2008 were around 48 million tonnes CO2 equivalent, a decrease of over 5 million tonnes CO2 equivalent. In absolute terms, this is a fall of approximately 9%. In terms of greenhouse gas intensity, measured by kg CO2 per USD turnover, it is a decrease of 20%. The greenhouse gas intensity based on activity (exposure working hours) was 128 grams per hour. 11 Since the system for collecting data is still being developed, a number of uncertainties continues to be involved. Through improved data collection and management systems, we expect to gradually reduce uncertainty over the next three years. 12 Measured per FFE (Forty-Foot Equivalent container units) container shipping increased 2% from 2007 to 7.0 million FFE. TABLE 7 Environmental performance in the A.P. Moller - Maersk Group 2008 Energy consumption Fuel oil Diesel* Natural gas Electricity Energy intensity 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh MJ/USD turnover 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 Transport Energy Industry 11,985 13,067 1,022 781 10 0 256 113 53 110 163 304 0 874 12 1 897 10 838 17 726 66 5 666 17.6 5.4 0.2 18.6 6.8 1.5 A.P. Moller - Maersk Group 13,017 13,848 422 577 886 908 1.581 737 10.9 12.2 * including jet fuel Indirect GHG emissions Direct GHG emissions GHG emissions GHG emissions 1,000 tonnes CO2 eq 2008 2007 CO2 1,000 tonnes 2008 CH4 1,000 tonnes CO2 eq HFC 1,000 tonnes CO2 eq N 2O 1,000 tonnes CO2 eq CO2 1,000 tonnes GHG intensity kg CO2/ USD turnover 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 Transport Energy Industry 38,931 42,600 8,757 9,961 510 791 37,865.4 41,076 8,461.4 8,972 228.0 248 138.1 16.4 21.2 23 827 2 0.0 2.5 0.1 n/a n/a n/a 448.5 36.1 1.0 911 152 13 450.7 12.9 259.7 590 10 528 1.2 0.5 0.01 1.5 0.9 0.1 A.P. Moller - Maersk Group 48,198 53,352 46,554.8 50,296 175.7 852 2.6 n/a 485.6 1,076 723.3 1,128 0.8 1.0 Other air emissions SOx NOx VOCs PM 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes 2008 2007 2008 2007 2008 2007 2008 2007 Transport Energy Industry 607.6 144.3 121.6 616 38 2 892.4 87.4 2.2 1,026 63 5 17.14 14.57 0.14 n/a 16 n/a 28.9 n/a n/a 45 n/a n/a A.P. Moller - Maersk Group 873.5 656 982.0 1,094 31.85 16 28.9 45 28 Health, Safety, Security and Environment Report 2008 Other emissions CO2 emissions are not the only environmental impacts which the A.P. Moller - Maersk Group is concerned about. Other emissions to air are also of our concern. TRANSPORT SEGMENT A major share of our fuel consumption (about 95%) is consumed by ocean-going ships, and as the world’s largest container shipping company, our total emission of CO2 is significant. Other emissions to air include SOx, NOx and particulate matter (PM). SOx comes from sulphur which occurs naturally in crude oil and remains a residue of the refining process in fuel oils. Sulphur oxides can contribute to acidification and respiratory effects. NOx is the generic term for a group of gases, which contain nitrogen and oxygen in varying amounts. They form when fuel is burned at high temperatures and as such are very dependent on the combustion process in the main and auxiliary engines on our ships. NOx contributes to acidification, ozone/smog formation and eutrophication. PM is residuals formed by incomplete combustion of fuel and can also have carcinogenic effects. Shipping is the most common form of transport in the world today – in fact, 90% of the world’s goods are shipped by sea. Compared with aircraft, trucks and trains, ships emit substantially less CO2 per km when transporting 1,000 kg and are the most environmentally friendly form of transport (see comparison graphic below). The most recent study of fuel consumption and CO2 emissions from the shipping industry carried out by the UN’s International Maritime Organization (IMO), December 2007, suggests that around 4% of the global energy related CO2 emissions stem from shipping. The trend in emissions of SOx, NOx, and PM from ships under the A.P. Moller - Maersk Group’s control is stable, even though the numbers reported have grown due to improvements in the amount and quality of data. Our Innovation Department for ships has in 2008 carried out a research project to map the future possibilities for reducing SOx and NOx through uses of different technological solutions. Engine suppliers were asked to present their latest work on reducing SOx and NOx emissions, and how they see those ideas incorporated in ships. On the basis of the workshops, a matrix of solutions, potential and cost was compiled which can be used by the business units when making decisions on reducing these emissions to air. Through years of careful attention, our own container ships have reduced emissions of greenhouse gases resulting in Maersk Line and Safmarine being ahead of the industry average13. We are, however, not satisfied with the levels of emissions and will continue to further reduce fuel consumption and atmospheric emissions in the years to come. During 2008, the transport segment consumed about 12 million tonnes of bunker fuel (heavy fuel oil and marine diesel oil), leading to some 39 million tonnes of CO2 equivalent, 608,000 tonnes of SOx, 892,400 tonnes of NOx, and 29,000 tonnes of particulate matter. While emissions of CO2 relative to turnover have dropped by 20%, a number of other emissions have grown in absolute terms. 13 Based on results from Business for Social Responsibility (BSR) benchmarking as part of the Clean Cargo Working Group. We are not allowed to publicise these results. Grams of CO2 emitted by transporting 1 tonne of goods 1 km Aircraft 560 (Boeing 747-400) Truck 47 (Global average) Train, diesel 21 (Global average) Train, electric 18 (Global average) Ship (Average Maersk Line ship) Ocean shipping is by far the most environmentally friendly way of transporting goods. 8 Chart based on data from the Network for Transport and Environment, Sweden www.maersk.com 29 ENVIRONMENT Reducing fuel consumption is directly connected to limiting CO2 emissions. Some of the options contributing to reducing emissions in 2008 were: • A Waste Heat Recovery System, which saves 8–10% fuel at optimum conditions, has been implemented on 32 ships in total, of which 6 were fitted with the system in 2008, making the A.P. Moller - Maersk Group the world’s leading shipping company in this area. • Slow Steaming has been introduced on a large number of Maersk Line and Safmarine’s routes. Reducing speed 5–10% does increase the number of days at sea, but reduces both fuel consumption and CO2 emission by more than 15%. • The Quest project – installing software in containers to reduce energy consumption for cooling in containers – has shown remarkable results for saving CO2. At the end of 2008, 69% of Maersk Line and Safmarine’s reefer fleet was equipped with Quest software, generating CO2 savings equivalent to 260,000 tonnes per year. • Optimised voyage planning is an essential tool to reduce emissions. The Voyage Efficiency System (VES), an A.P. Moller Maersk developed voyage planning programme, is used on all large ships (and chartered ships) to identify the most fuelefficient route and a “just in time” steady running strategy is applied to keep the engine load at a minimum. In all business unit across the Group, we work to reduce our energy consumption in our daily operations. TABLE 8 Environmental performance: transport segment 2008 Energy consumption Fuel oil Diesel Natural gas Electricity Energy intensity GHG emissions GHG emissions Direct GHG emissions CO2 CH4 HFC N 2O Indirect GHG emissions CO2 GHG intensity Other air emissions SOx NOx VOCs PM 30 MJ/USD turnover 2008 11,985 256 0 838 17.6 2007 13,067 110 1 66 18.6 1,000 tonnes CO2 eq 38,931 42,600 37,865.4 138.1 0.0 448.5 41,076 23 450.7 1.2 590 1.5 607.6 892.4 17.14 28.9 616 1,026 n/a 45 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes Through years of careful attention, our own container ships have reduced emissions of greenhouse gases resulting in Maersk Line being ahead of industry average. n/a 911 Health, Safety, Security and Environment Report 2008 In order to develop a deeper understanding of our sustainability issues, we are entering into partnerships with various stakeholders. Our partnership approach Entering into partnerships with external stakeholders is an important element in the way the A.P. Moller - Maersk Group approaches the environmental agenda. We are committed to exploring and developing sustainable solutions, to the benefit of the environment and our business. By engaging with governments, industry partners and other stakeholders, we seek to establish effective and predictable GHG (greenhouse gasses) abatement initiatives, policies and technological frameworks. We will also work to establish relationships with NGOs in order to develop a deeper understanding of our sustainability issues, and to make progress towards a more comprehensive approach to stakeholder dialogue. business-to-business collaboration platform dedicated to integrating environmentally and socially responsible business principles into transportation management. The group is hosted by the organisation Business for Social Responsibility (BSR). Members share data and make benchmarks, and the partnership gives access to the latest thinking within sustainability issues. The group has more than 25 members and the container carrier companies in the group represent more than 70% of the global capacity. Besides shipping companies, major retailers and manufacturers such as Coca-Cola, H&M, Nike, Wal-Mart, Timberland and Starbucks are members of the group. The ultimate goals of our environmental activities are to improve our environmental performance, reduce costs and explore new business opportunities. To meet this challenge we are working closely with a wide variety of institutions to find the best possible responses to the environmental challenges faced by our businesses – and society as a whole. As innovation is a driver for our ambition level, we will use innovative partnerships to increase our eco-efficiency and reduce our environmental footprint. Maersk Logistics and Massachusetts Institute of Technology (MIT) By joining the MIT Supply Chain Exchange, Maersk Logistics has become part of a large and active community of supply chain management leaders with access to MIT Center for Transportation & Logistics’ cutting-edge research and educational programmes and events. Maersk Logistics will collaborate with the MIT researchers on enhancing carbon footprint methodologies. The partnership will also contribute to the effective measurement of carbon emissions in global supply chains and the advancement of carbon emission reduction to achieve certified global supply chain methodology standards. The following are just a few examples of such partnerships. Read more on maerskgreen.com. A.P. Moller - Maersk Group and “Green Ship of the Future” Danish companies, shipping lines and universities have joined forces to reduce CO2 emissions and other air pollution arising from the activities of the shipping industry. The partners aim to combine a number of scientific and innovation projects to create greener solutions for ocean freight, and at the same time make the industry’s effort to minimise the impact on environment and climate visible. Beside the A.P. Moller - Maersk Group, participants include MAN Diesel, FORCE Technology, Danish Centre for Maritime Technology and Danish Maritime Authority. Maersk Line and Clean Cargo Working Group The Clean Cargo Working Group’s overall mission is to be the www.maersk.com APM Terminals and Port of Rotterdam The partnership is a five year, global agreement to work towards improved productivity and efficiency, land utilisation, environmental sensitivity and public awareness of the container terminal industry. Through five joint projects per year, research will contribute to achieving the main objectives, which are: • support environmentally proactive terminal planning and operating procedures with sustainable development, • improve productivity and efficiency of terminal operations, • optimise land use, • help to increase public awareness of the major role container facilities play in creating jobs and prosperity in the global as well as in national, regional and local economies. 31 ENVIRONMENT Carbon Capture and Storage (CCS) remains one of the most promising methods of reducing CO2 emissions. ENERGY SEGMENT Activities in the oil and gas industry have three main environmental impacts: Emissions to air, discharges to water and waste management. Due to the availability of data, we focus on emissions to air only. Next year, however, we will also include information on waste management and water consumption. In 2008, Maersk Oil consumed 145,345 tonnes of fuel and 10,145 megawatt hours of electricity across its 36 producing fields in the Danish and UK parts of the North Sea, Kazakhstan and Qatar. This compared to 110,000 tonnes of fuel and 5,000 megawatt hours of electricity in 2007. The increase in electricity consumption is because of improved data reporting. The energy intensity for energy consumption per USD turnover in 2008 was 20% lower when compared to 2007. This was due to a combination of a reduction in diesel and natural gas consumption and also an increase in revenue. CO2 emissions occur because the extraction of oil and gas requires significant amounts of energy. The level of CO2 emissions varies, depending on a range of parameters such as depth and type of reservoir being produced. For example, working on mature oil and gas fields raises the energy required per unit produced, as reservoirs in time become more difficult to access. Other sources of emissions, including fugitive emissions (equipment leaks), flaring and venting, can also be significant when producing energy. Data in table 9 includes emissions to air from energy production and flaring. Greenhouse gas emissions fell by 12% in absolute numbers but 44% compared to the increased turnover in the segment. All other emissions to air grew mainly due to improved collection and quality of data. A number of initiatives are currently under way in Maersk Oil, all looking to lessen the environmental impact of oil and gas production. TABLE 9 Environmental performance: energy segment 2008 Energy consumption Fuel oil Diesel* Natural gas Electricity Energy intensity GHG emissions GHG emissions Direct GHG emissions CO2 CH4 HFC N 2O Indirect GHG emissions CO2 GHG intensity Other air emissions SOx NOx VOCs PM MJ/USD turnover 2008 1,022 113 874 17 5.4 2007 781 163 897 5 6.8 1,000 tonnes CO2 eq 8,757 9,961 8,461.4 16.4 2.5 36.1 8,972 827 12.9 0.5 10 0.9 144.3 87.4 14.57 n/a 38 63 16 n/a 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes A number of initiatives are currently under way in Maersk Oil, all looking to lessen the environmental impact of oil and gas production. n/a 152 * including jet fuel 32 Health, Safety, Security and Environment Report 2008 Maersk Oil has reduced flaring continuously since 2001 resulting in a reduction of about 50%. To continue this effort, Maersk Oil is developing a new flare gas recovery system. Maersk Oil: addressing climate change In 2008, Maersk Oil established a Carbon & Climate Department to address the issues of climate change and how it affects the business. The Carbon & Climate Department is focusing on energy efficiency, CO2 emission mitigation technologies, and is investigating the business risks and opportunities associated with CO2 emissions and climate change. when associated gas resulting from oil production is flared from production platforms for safety reasons. Nearly all gas produced in the North Sea is exported, re-injected or used as offshore fuel, measures that are also in use in Qatar. Maersk Oil is currently developing a new flare gas recovery system which is due to be tested in one of our North Sea fields. Maersk Oil is not active in the area of renewable energy – this is something however, that our Innovation Department for ships is looking into. Maersk Oil's main expertise lies within the oil and gas business and the world will still for many years be dependent on fossil fuels. Accordingly, Maersk Oil is concentrating its efforts on exploration and production of oil and gas in an efficient manner also taking environmental matters into account. Among those being explored are: • Projects to re-inject water and thereby easing the current situa- • A study to map and benchmark energy efficiency, gas flaring and CO2 emissions associated with oil and gas production offshore Denmark. • Reducing flaring, which has been done continuously since 2001, resulting in a reduction of about 50%. Flaring occurs www.maersk.com tion where oil fields get three times as much water as oil out of the underground. In line with this effort, we are exploring the use of heat and steaming to get the oil out. • Carbon Capture and Storage (CCS) remains one of the most promising methods of reducing CO2 emissions. CCS removes the CO2 when fossil fuels are burned and stores it underground, for instance in depleted oil and gas fields. Maersk Oil is currently investigating future CCS project together with Maersk Tankers and Maersk FPSOs. One of these is the entry of Maersk Tankers into the CO2 transportation market, and Maersk Tankers has in 2008 examined the business case for entering into this market. The outcome will be further explored in next year’s report. 33 ENVIRONMENT INDUSTRY SEGMENT The A.P. Moller - Maersk Group’s industry segment covers companies with very diverse profiles. The main contributors to energy consumption are Dansk Supermarked due to electricity consumption in stores and warehouses, and Rosti and Odense Steel Shipyard due to the amounts of energy needed for plastics production and ship building, respectively. In 2008, energy consumption in Dansk Supermarked was 367 tonnes of fuel mainly from company cars and trucks, 4,388 tonnes of natural gas and 455,394 megawatt hours electricity related mainly to stores and warehouses. This corresponds to 184,047 tonnes of CO2 equivalent. The corrected emissions in 2007 were 174,890 tonnes of CO2 equivalent, which results in a much more acceptable growth in emissions compared to the originally reported number for 2007 of 322,000 tonnes. In general, we have discovered problems with the reported data for 2007 for the industry segment, which makes the comparisons between 2008 and 2007 difficult. This flaw in data has been investigated, and we are working to secure work procedures that minimise the risk of this reoccurring. The performance numbers reveal reductions in emissions in almost any category. Main contributors to this development are the faults in the data for 2007, which makes it impossible to provide valid trend explanations. Star Air is responsible for nearly one third of the CO2 emissions in the industry segment. They exert efforts to reduce their jet fuel consumption through various procedures, such as reduced takeoff thrust and a procedure called “continuous descent approach” (CDA). During a CDA, when the aircraft gets ready to descend, the pilot cuts power and the aircraft maintains a constant rate of descent all the way to touchdown. The benefits of a CDA include reduction in noise, fuel burn and emissions. It is a procedure that is being tested and and introduced by a number of European airports. In Star Air’s route network it has been introduced in the East Midlands and Cologne, and Star Air has been commended for a success rate above best practice by the airport authorities in the East Midlands and Cologne. To reduce emissions and energy consumption in warehouses, Dansk Supermarked’s large supermarkets in Denmark, Bilka and Føtex, have carried out an energy saving competition, starting in TABLE 10 Environmental performance: industry segment 2008 Energy consumption Fuel oil Diesel* Natural gas Electricity Energy intensity GHG emissions GHG emissions Direct GHG emissions CO2 CH4 HFC N 2O Indirect GHG emissions CO2 GHG intensity Other air emissions SOx NOx VOCs PM 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh MJ/USD turnover 1,000 tonnes CO2 eq 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes 2008 10 53 12 726 0.2 2007 0 304 10 666 1.5 510 791 228 21.2 0.1 1 248 2 259.7 0.01 528 0.1 121.6 2.2 0.14 n/a 2 5 n/a n/a n/a The main contributors to energy consumption are Dansk Supermarked due to electricity consumption in warehouses, and Rosti and Odense Steel Shipyard due to the amounts of energy needed for plastic productions and ship building respectively. 13 * including jet fuel 34 Health, Safety, Security and Environment Report 2008 To reduce emissions and energy consumption in warehouses, Dansk Supermarked’s large supermarkets in Denmark, Bilka and Føtex, have carried out an energy savings contest, starting in March 2008. March 2008. Individual warehouses were rated in terms of energy use and have competed on the ability to save energy. The original target was savings of 3%, whereas the final result – 2.5% – was below this number. In total, 2,627,000 KWh were saved, equal to 1,374 tonnes of CO2, which again equals savings of around DKK 1.8 million. The supermarkets’ management are pleased to have started this process and the competition will be repeated in 2009. Odense Steel Shipyard has worked to reduce energy consumption as well, through energy awareness and behaviour changes. An overview of energy saving potential from lighting, welding machinery, pressurised air, exhaust devices has been communicated, and departments are asked to contribute reports on energy behaviour every week to sustain the focus. Since its inception in the spring of 2008, energy savings of more than 10% have been achieved. GLOBAL GREEN WEEK Green ideas from employees Midway through 2008, the A.P. Moller - Maersk Group celebrated its first Green Week. The key focus of the week was how each and every employee can make a difference changing their daily behaviour. Each day of the week introduced the ‘Green Tip of the Day’, encouraging employees to put computers on stand-by when not at the desk, turn off the lights when leaving the office – or home, use less paper for printing, not use disposable cups and reduce stand-by energy consumption. As part of the Green Week, employees were encouraged to send in ideas which resulted in a large idea bank. Three winners were picked, and their projects are now part of an Environmental Resource Management Manual released in 2009 which aims to www.maersk.com spread all the ideas from Green Week to the whole organisation. Three winners were picked based primarily on low cost and ease of implementation. All of these are small steps that still make a difference considering the scale of the A.P. Moller - Maersk Group's activities: keep bulbs and tubes dust-free for 20% more brightness, increase air condition temperature 1 degree, buy only energy efficient appliances, offload unnecessary things from your car to save fuel, use a small bottle filled with water in the toilet cistern to save water when flushing, unplug idle battery chargers, etc. These ideas are now part of an Environmental Resource Management Manual released in 2009 which aims to spread all the ideas from Green Week to the whole organisation. 35 ENVIRONMENT Innovation driving performance ”We can only make big leaps in environmental performance through innovation,” says Jean Otto de Kat, who heads the Innovation Department for ships in the A.P. Moller - Maersk Group, true to the Group’s environmental strategy which has innovation as a key driver. The overall question is what can be done to reduce the A.P. Moller - Maersk Group’s environmental footprint? Established in 2007, the Innovation Department supplies innovation expertise and facilitates innovation processes across the different business units, most prominently Maersk Line, Maersk Tankers and Maersk Supply Service. They also support business units in the ongoing process of setting targets in line with the environmental strategy. Innovative propeller shape: the Contracted and Loaded Tip Propeller Working inside and outside the ships Looking at business unit needs and development opportunities, Jean de Kat’s organisation works primarily on energy efficiency as well as a number of projects to further reduce emissions of CO2, SOx, NOx and PM, as well as looking at discharges into sea. ”We can only make big leaps in environmental performance through innovation.” Jean Otto de Kat, Head of the Innovation Department for ships in the A.P. Moller - Maersk Group The current status on the Innovation Department’s projects is that two are ready for implementation by the relevant business units, while thirteen related to emissions (out of a total of 19 ongoing projects) are in either the design or test phase. Business cases are being prepared for another eight projects aimed at reducing environmental impact. Patenting on the increase As part of a trend towards more jointly funded projects with industry partners, the Innovation Department also makes greater use of the patenting system. Over the last two years, more than ten patent applications have been submitted to patent authorities. The patents submitted are related to propulsion, safety, NOx/SOx removal and subsequent emissions, and shore-based energy supply. A promising future The cumulative effect of the projects being prepared by the Innovation Department depends on their subsequent implementation across the A.P. Moller - Maersk Group. ”We experience a great interest across the business units in reducing their footprint. Despite the effect of the financial crisis, I believe our work will enable the A.P. Moller - Maersk Group to make a lot of progress when more of our projects are ready for implementation,” Jean Otto de Kat concludes. ”We look at both the inside and the outside of the ship, asking questions such as what can we do to optimise the hull shape? What can we do to improve propeller design? Can we reduce friction? Inside the ship, there is a lot of potential for gain in terms of the machinery that runs a ship,” he states. Ideas welcome from everywhere The Innovation Department solicits ideas from the entire organisation and turns the most promising ones into a business case, which is then presented to a steering committee and ultimately to the Innovation Board, which also decides on funding. The Innovation Department then takes the project through the design and test phase. After finalising the report, the project moves into the business units who decide on implementation across the fleet, supported by the Innovation Department. 36 Jean Otto de Kat, Head of the Innovation Department for ships in the A.P. Moller - Maersk Group. Health, Safety, Security and Environment Report 2008 Optimising customers’ supply chain Many of the A.P. Moller - Maersk Group’s customers are concerned about their environmental footprint, and work to reduce it. As one of the world’s main providers of logistic services, Maersk Logistics have developed a service to help their customers do just that. The SupplyChain CarbonCheck™ was launched globally in November 2007, and today Maersk Logistics is involved in several carbon reduction projects for some of the world’s largest companies. Greener means cheaper One of the most prominent CarbonCheck portfolio projects has been carried out in cooperation with Boots, a leading international chain of pharmacy and health and beauty stores. Since 2004, Maersk Logistics have enabled Boots to reduce CO2 emissions by 29% and logistics costs by 21% in their inbound supply chain from Asia to their distribution centre in England. Another challenge concerns the image of green supply chains. ”In the short run, we will still have to do some promoting of green supply chains as ’cheap and lean’ rather than costly and ’flowerpower’. But the results from the work done so far is helping us build the evidence,” Erling Johns Nielsen says. Maersk Logistics is involved in several carbon reduction projects for some of the worlds largest companies. ”It goes to show that if you review and optimise your supply chain end-to-end from a green perspective, great savings can be made”, says Erling Johns Nielsen who is global head of Maersk Logistics’ Supply Chain Development Team. Challenges in scaling up Working with SupplyChain CarbonCheck has its share of challenges. One is the varying standards for measuring and calculating CO2 emissions. Maersk Logistics is involved in partnership projects with Massachussetts Institute of Technology and the World Resource Insititute to further this subject. Erling Johns Nielsen, Global Head of Maersk Logistics’ Supply Chain Development Team. SupplyChain CarbonCheck A five-step approach The SupplyChain CarbonCheck consists of five steps: • Estimate current supply chain carbon footprint & costs, • Simulate carbon footprint & costs of alternative scenarios, • Evaluate CO2 emission & cost reduction potential, • Implement solutions, • Offset the remaining CO2 emissions by acquiring certified carbon credits. 12–18 months after implementation Maersk Logistics recalculates supply chain carbon emissions and logistic costs and compares against the targets set for the project. www.maersk.com 37 ENVIRONMENT Green ship recycling: our policy Recycling of ships is a much debated issue both in- and outside the shipping industry. Photos of huge ships being dismantled on beaches in for example Bangladesh with hazardous materials treated as ordinary scrap and handled by unprotected workers are common in international media. It is called “beaching”. ”Ships owned by the A.P. Moller - Maersk Group are not recycled in this way. Our corporate policy on beaching is clear: We do not allow beaching and all recycling must be performed in an environmentally friendly way – green recycling,” says Tom Peter Blankestijn, who is in charge of ship recycling in the A.P. Moller Maersk Group. One place to go to In 2008, just one ship was recycled in full by the A.P. Moller Maersk Group. Following the policy and procedure for ship recycling, a recycling yard in China was used. ”They are, at this moment, the only yard where we can secure recycling in coherence with the A.P. Moller - Maersk Group’s demands. Supervisors employed by the A.P. Moller - Maersk Group are present at the yard during the recycling process to guarantee that all environmental and human safety standards are met. The supervisors also travel to the final disposal facilities for hazardous materials leaving the yard, to control that these materials are treated according to our specifications,” explains Tom Peter Blankestijn. ation of a recycling inventory, a ship recycling plan, assist in the selling and delivery of the ship to the yard as well as guidance to the crew on the last journey, and finally provide supervision during the dismantling of the ship,” says Tom Peter Blankestijn. Awaiting international standards The A.P. Moller - Maersk Group decided in 2007 to equip all ships with what is called a ”Green Passport”. In 2008, preparations have been carried out, among other things negotiating with Classification Bureaus to agree on a standard for obtaining and creating a green passport. Additional action is awaited in the spring of 2009 after the adoption of the International Convention of Ship Recycling and after further developments of the International Maritime Organization’s guidelines supporting the convention. The Group’s expertise in green recycling of ships has, in fact, become a valued commodity in the shipping industry. Commercial know-how The Group’s expertise in green recycling of ships has, in fact, become a valued commodity in the shipping industry. In 2008, recycling services for two ships owned by two other shipping companies were provided, a number which is certain to grow in 2009. ”As we do with our own ships, we provide a service for the cre- Tom Peter Blankestijn, Head of ship recycling in the A.P. Moller - Maersk Group. GREEN PASSPORT Tracking the life of a ship The Green Passport is a document, containing an inventory of all materials potentially hazardous to human health or the environment used in the construction of the ship. The Green Passport accompanies the ship throughout its working life and ensures that dismantling the ships at the end of its lifetime can be conducted in an environmentally responsible and safe manner. So far, more than 40 of our ships have received Green Passports, and upcoming new built ships will all have Green Passports. 38 Health, Safety, Security and Environment Report 2008 www.maersk.com 39 A.P. MOLLER - MAERSK GROUP Global Reporting Initiative The Global Reporting Initiative (GRI) is the world’s most widely used sustainability reporting framework. This framework sets out the principles and indicators that organisations can use to measure and report their economic, environmental and social performance. For more information about the GRI, please visit: www.globalreporting.org. Below is an overview of where in the report the GRI standard disclosures can be found. TABLE 11 GRI Standard Disclosures Section in report 1. 1.1 1.2 Strategy and analysis Foreword by CEO Description of key impacts, risks and opportunities Foreword (page 1) Foreword (page 1) 2. 2.1 2.2 2.3 2.4 2.5 2.7 2.8 Organisational profile Name of organisation Primary brands, products and/or services Operational structure of the organisation Location of organisation’s headquarters Number of countries where the organisation operates Markets served Scale of reporting organisation Company profile (inside front cover) Company profile (inside front cover) Company profile (inside front cover) Company profile (inside front cover) Company profile (inside front cover) Company profile (inside front cover) Company profile (inside front cover) 3. 3.1 3.3 3.4 3.5 3.6 3.7 3.8 Report parameters Reporting period Reporting cycle Contact point for questions regarding the report Process for defining report content Boundary of the report Specific limitations on the scope or boundary of the report Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations etc. 3.9 Data measurement techniques and the bases for calculations 3.12 Table identifying standard disclosures in the report 4. 4.1 4.8 About the report (page 4–9) Foreword (page 1), About the report (page 4–9) Colophon (back cover flap) About the report (page 4–9) About the report (page 4–9) About the report (page 4–9) About the report (page 4–9) About the report (page 4–9) This table (page 40) Governance, commitments and engagement Governance structure of the organisation Internally developed statements of mission or values, environment codes of conduct, and principles relevant to performance 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation 4.13 Memberships in associations and advocacy organisation About the report (page 4–9), Governance of health, safety, security and environment (page 10–11) Health and safety (page 14–19), Environment (page 31) 5. Management approach and performance indicators EC1 Economic performance EN3 Environmental performance EN16 Environmental performance EN20 Environmental performance LA7 Labour practices and decent Work Company profile (inside front cover) Highlights (page 2–3), Environment (page 26–39) Highlights (page 2–3), Environment (page 26–39) Highlights (page 2–3), Environment (page 26–39) Highlights (page 2–3), Health and safety (page 14–19) 40 Governance of health, safety, security and environment (page 10–11) Governance of health, safety, security and environment (page 10–11) Health, Safety, Security and Environment Report 2008 Share your opinion If you have any enquiries, suggestions or comments to this report or our performance, or how we present this information, we welcome your comments. You can send us your feedback by email at grphse@maersk.com. Acknowledgements Editors: Group Relations, CSR Contributing writer: Eva Harpøth Skjoldborg Design and production: Branded Design ApS Cover photo: Tom Ingvardsen Printing: Bording Graphic A/S You are also welcome to contact Joseph Nazareth, Head of Group HSSE, at +45 3363 4825 or write to us at: A.P. Moller - Maersk Esplanaden 50 1098 Copenhagen K Denmark May 2009 Att: Group Relations, HSSE TABLE 6 TABLE 7 Lost Time Injury Frequencies in the A.P. Moller - Maersk Group 2008 Environmental p Business unit Energy consumption Performance ‘07 APM Terminals Container Inland Services* Danbor Dansk Supermarked Maersk Container Industry* Maersk Drilling and FPSOs Maersk Line (incl. Safmarine)* Maersk Logistics* Maersk Oil Maersk Supply Service Maersk Tankers Norfolkline*** Odense Steel Shipyard** Rosti*** Star Air (data from 2009) Svitzer Target ‘08 Performance ‘08 Target ‘09 Industry benchmark 1.53 2.34 0.59 13.59 57.00 10.78 10.35 14.40 2.52 10.60 3.27 1.50 2.00 3.29 1.71 2.12 0.60 12.23 45.60 8.91 7.15 19.88 0 9.20 3.34 1.09 1.07 3.83 1.96 1.43 1.38 5.63 42.11 3.58 n/a n/a n/a 24.70 32.30 2.355 n/a n/a 0.666 1.207 n/a n/a 32.308 32.30 2.60 2.00 1.64 6.38 13.60 2.38 8.75 3.09 1.10 1.00 3.26 1.62 1.10 0.60 11.50 33.70 8.42 0 1.50 5.08 4.35 n/a 9.60 4.80 11.78 1.67 A.P. Moller - Maersk Group Transport Energy Industry A.P. Moller - Maersk Group * including jet fuel GHG emissions n/a *** In 2007, all the business units marked * were part of the Container Business and reported under Maersk Line (vessels) (2.12) and Container Business (2.35) *** Figures do not include the shipyards in Estonia and Lithuania due to insufficient data *** Some business units have developed reduction targets over a five year period, and targets have not been adjusted in light of annual performance Transport Energy Industry A.P. Moller - Maersk Group Other air emissions 5 International Association of Drilling Contractors ISP Summary Report 2008 6 International Association of Oil & Gas Producers, Safety performance indicators – 2007 data, Report No. 409, May 2008 7 Marine Safety Forum 2007: www.marinesafetyforum.org/upload-files//notices/amm_11.07_ukcs-safety-performance.pdf 8 Dansk Arbejdsgiverforening, Arbejdsulykker 2007, 20 August 2008 Transport Energy Industry A.P. Moller - Maersk Group TABLE 8 TABLE 9 Environmental performance: transport segment 2008 Environmental performance: energ Energy consumption Fuel oil Diesel Natural gas Electricity Energy intensity GHG emissions GHG emissions Direct GHG emissions CO2 CH4 HFC N 2O Indirect GHG emissions CO2 GHG intensity Other air emissions SOx NOx VOCs PM MJ/USD turnover 2008 11,985 256 0 838 17.6 2007 13,067 110 1 66 18.6 Energy consumption Fuel oil Diesel* Natural gas Electricity Energy intensity 1,000 tonnes CO2 eq 38,931 42,600 GHG emissions GHG emissions 37,865.4 138.1 0.0 448.5 41,076 23 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes 911 Direct GHG emissions CO2 CH4 HFC N 2O 450.7 1.2 590 1.5 Indirect GHG emissions CO2 GHG intensity 607.6 892.4 17.14 28.9 616 1,026 n/a 45 n/a Other air emissions SOx NOx VOCs PM * including jet fuel 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh MJ/USD turnover 1,000 tonnes CO2 eq 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes performance in the A.P. Moller - Maersk Group 2008 Fuel oil Diesel* Natural gas Electricity Energy intensity 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh MJ/USD turnover 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 11,985 13,067 1,022 781 10 0 256 113 53 110 163 304 0 874 12 1 897 10 838 17 726 66 5 666 17.6 5.4 0.2 18.6 6.8 1.5 13,017 13,848 422 577 886 908 1.581 737 10.9 12.2 Direct GHG emissions GHG emissions CO2 1,000 tonnes CO2 eq 2008 CH4 1,000 tonnes HFC 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq N 2O CO2 1,000 tonnes CO2 eq 1,000 tonnes GHG intensity kg CO2/ USD turnover 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 38,931 42,600 8,757 9,961 510 791 37,865.4 41,076 8,461.4 8,972 228.0 248 138.1 16.4 21.2 23 827 2 0.0 2.5 0.1 n/a n/a n/a 448.5 36.1 1.0 911 152 13 450.7 12.9 259.7 590 10 528 1.2 0.5 0.01 1.5 0.9 0.1 48,198 53,352 46,554.8 50,296 175.7 852 2.6 n/a 485.6 1,076 723.3 1,128 0.8 1.0 2007 2008 Indirect GHG emissions SOx NOx VOCs PM 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes 2008 2007 2008 2007 2008 2007 2008 2007 607.6 144.3 121.6 616 38 2 892.4 87.4 2.2 1,026 63 5 17.14 14.57 0.14 n/a 16 n/a 28.9 n/a n/a 45 n/a n/a 873.5 656 982.0 1,094 31.85 16 28.9 45 TABLE 10 gy segment 2008 Environmental performance: industry segment 2008 2008 1,022 113 874 17 5.4 2007 781 163 897 5 6.8 Energy consumption Fuel oil Diesel* Natural gas Electricity Energy intensity 8,757 9,961 GHG emissions GHG emissions 8,461.4 16.4 2.5 36.1 8,972 827 n/a 152 Direct GHG emissions CO2 CH4 HFC N 2O 12.9 0.5 10 0.9 Indirect GHG emissions CO2 GHG intensity 144.3 87.4 14.57 n/a 38 63 16 n/a Other air emissions SOx NOx VOCs PM * including jet fuel 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 MWh MJ/USD turnover 1,000 tonnes CO2 eq 1,000 tonnes 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes CO2 eq 1,000 tonnes kg CO2/USD turnover 1,000 tonnes 1,000 tonnes 1,000 tonnes 1,000 tonnes 2008 10 53 12 726 0.2 2007 0 304 10 666 1.5 510 791 228 21.2 0.1 1 248 2 259.7 0.01 528 0.1 121.6 2.2 0.14 n/a 2 5 n/a n/a n/a 13