Corporate Social Responsibility

1. Corporate Social Responsibility- the role of industry representative organisations Hong Kong Shipowners’ Association 24 November 2006 Peter M. Swift Managing Director, INTERTANKO

2. What is Corporate Social Responsibility(CSR) ? CSR is: • Good corporate citizenship • A Duty of Care • Acting Beyond Compliance (Beyond Profit) • More than charitable acts • CSR is NOT PR but is ”good business”

3. What is Corporate Social Responsibility(CSR) ? ”CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” World Business Council for Sustainable Develoment, ”Changing Expectations”, 1999

4. What is Corporate Social Responsibility(CSR) ? CSR is concerned with: • The environment • Labour (employees) • Human Rights • The (wider) community • Stakeholder involvement • Business Ethics Kennedy School of Government, Harvard University Leadership, Accountability & Partnership: Issues in CSR 2004

5. Corporate Social Responsibility (CSR) Individuals CSR Environment Wider Community Human Rights Business Ethics Stakeholders

6. CSR - What is role of industry representative organisations? • None ? • Complementary to, or an extension of, members’ own CSR activities ? • A wider role on behalf of the “industry” it represents ?

7. Mission and Vision MISSION “Provide leadership to the Tanker Industry in serving the world with the safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION FOR THE TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.”

8. One of the Association’s primary goals: Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of: Zero fatalities Zero pollution Zero detentions

9. Society and the International Shipping Industry share the same goals Shipping should be: • Safe and secure • Environmentally responsible • Reliable • Efficient (Low cost)

10. CSR Checklist for industry representative organisations? Environment • Ballast water management, anti-foulings, responsible recycling, air emissions Engaging with stakeholders • Politicians, regulators, environmental NGOs Wider community - media, public (?), shipping charities

11. CSR Checklist for industry representative organisations? Business Ethics • focus on corruption – principally PSC “People” / “Welfare” • Training programmes, Support for ILO-MLC, HSE practices in demolition yards Human Rights - Speaking out on unfair treatment & practices

12. CSR Checklist for industry representative organisations? AND one more A responsibility to ensure good governance structures for the industry

13. REGULATION Effective Regulation SELF-REGULATION Best Practice Shipping’s Governance Structure

14. Work responsibly for“Effective” Regulation Regulation, which is: • Developed at the global level, wherever appropriate (consistent with existing law) • Fit for purpose (provides solutions) • Properly considered (stakeholders involved) • Impact(s) fully assessed (economic and social) • If adopted, implemented uniformly and promptly

15. Promote “Self Regulation” By • Encouraging / Adopting industry “best practices” • Producing industry guidelines • Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more…

16. Promote acceptance of industry’s case for ”Self-Regulation” • Shipping has to be seen as a “Responsible” industry and • To be respected by the public, legislators, regulators and media

17. Industry “best practices” Examples: • Adopting IMO Pilotage “Recommendations” • Signing-up to Early Warning Information (Sharing) Systems • Implementing Green Passport / Preparing Applying Hazardous Material Inventory • Applying VOC control on passage • Implementing anti-fouling regulations ahead of IMO timetable • Establishing Emergency Response procedures • Developing & rehearsing crisis management procedures, (including media training) • ……………………

18. Industry “Guidelines” Examples: • Flag State Performance • Recycling guidelines • ISGOTT • Newbuilding Awareness guide • Model Ballast Water Management plan • Garbage Management plan • ISO 14001 planning • Oil record book completion, OWS guidance • Mooring, STS, COW, etc. • ………

19. Industry “programmes and procedures” / Quality Initiatives Examples: • Ship & Terminal vetting • Management self-assessment programmes • Casualty reporting and analysis • PSC record analysis • Establishment of Inter-Industry Group (Chemical Tanker accidents): Recommendations for Inert Gas for Cargo Tanks on presently exempted ships, Establishment of Human Element Task Force • ………..

20. Other Examples of Industry’s Quality Initiatives / Acting “responsibly” • Industry-Government Programmes • Marine Electronic Highway • Reception Facilities Forum • Double Hull Panel (EMSA) • ……… • With many similar programmes on the dry side, plus sector specific - BC Loading Rates - Carriage of DRI - Annex V issues - ………

21. Other Examples of Industry’s Quality Initiatives / Acting “responsibly” Acting “Ahead of” regulatory implementation: • Annex VI (Nox & Sox, VOC) • Anti Fouling Systems (TBT Ban) • Fixed Gas detection systems (Ballast tanks) • Cargo tank coatings • IG on smaller chemical tankers • BW management trials • OWS alternatives • Green Passport and HMI standards • ……….

22. Shipping’s Governance Structure Legislation & Regulations - Regulation & self regulation With licences to operate provided by: - Flag - Class (newbuild & in-service) - Insurer (compulsory certificates) - Charterers (through vetting) - PSC (on behalf of coastal states)

23. Engaging with FLAGs • producing industry guidelines • Support for IMO Flag State audits

24. Engaging with Classification Societies • Regular meetings of Industry and IACS • Development of Common Structural Rules • Tripartite dialogue: owners, builders and class: • Common structural rules • Coatings and coating performance standards • Goal Based Standards (Tiers IV & V) • Information sharing • Shipboard waste management

25. Engaging with Insurers, Charterers and Port State Control • Regular meetings of Industry and the International Group of P&I Clubs - seeking differentiation based on “quality” - IOPC Quality WG • Continuing dialogue with Charterers: – - OCIMF-SIRE, CDI and others - MSDS, terminal safety, etc. • Meetings with PSC MoUs • Seeking uniformity in standards and procedures • With EQUASIS, seeking consistency in data and effective analysis of information

26. INTERNATIONAL EU Challenges to UNCLOS EU Ship Source Pollution Directive Canada Bill C-15 Ballast Water Legislation Air Pollution / Fuel Quality regulations (USA) FEDERAL Challenges to EPA regs on Ballast Water Discharges Massachusetts Oil Spill Response legislation Pending legislation in Rhode Island on LNG movements State legislation on Air Emissions Maintaining the supremacy of IMO,International and US (Federal) LawAgainst the challenges of Local and Regional Legislation

27. Speaking out on “Criminalisation” A two-fold concern: • Unfair treatment / human rights and • Counterproductive nature of other measures

28. Speaking out on “Criminalisation” Unfair treatment and violation of human rights • Too many cases of unlawful detentions after shipping accidents • Welcome for the joint IMO/ILO Guidelines for the Fair Treatment of Seafarers • Too many other unjust practices – unjustified fines, denial of shore leave, prohibition of terminal access and more

29. Speaking out on “Criminalisation” Counterproductive consequences not recognised: • Destroys “no blame” cultures • Discourages openness and frank reporting • Curtails surveyors’ reports – detracts from ”good practice” • Deters salvors in circumstances when we need them most • Deflects focus for proper casualty investigation and denies benefits of same • Destroys and damages morale of seafarers and others • Dissuades new recruits and accelerates departure of experienced staff • Drives responsible people and companies from the business Is this what the legislators and society are seeking ?

30. Speaking out ………. “Bad” legislation is the enemy of the “good”

31. CSR - The role of industry representative organisations?- Supporting and encouraging responsibility and quality across the industry- Being in the game as a player,not a spectator on the sidelines

32. CSR - The role of industry representative organisations?Members of a Leadership Forum ?“Lead or be Led ?”

33. THANK YOU www.intertanko.com www.shippingfacts.com www.themaritimefoundation.com

34. Challenges to the International Governance of the Shipping Industry International vs. local, national and regional • Liability – EU Penal Sanctions vs. International Conventions • Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS • Sulphur Levels / Air Emissions – EU, USA vs. IMO • Security – MTSA vs. ISPS • Ballast Water Management – US, Australia et al vs. IMO

35. Maintaining the Supremacy of International and US Federal Law What is being done ? • Major industry-wide efforts to remove the threat of criminal sanctions for accidental discharges, including a Legal Challenge to the European Court of Justice • Industry speaking out against “Unfair treatment” • Extensive lobbying in the EU and US • Legal Challenge in US with DoJ against the State of Massachusetts • Legal Challenge in US with USCG over Regulation of Discharges • Challenges to use of “Age” as a selection criterion • Challenging Torres Straits compulsory pilotage • And much more ………………

36. Poseidon Challenge- commitment to continuous improvement- commitment to working with all partners